Methanol

Egypt and A.P. Moller-owned C2X ink agreement for large scale green methanol production

‘Egypt has many natural advantages that support a world class green methanol project including access to low-cost renewables and proximity to Suez Canal and maritime customers,’ says Brian Davis of C2X.

Published

2 months ago

October 5, 2023

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C2X, a new, independent company backed by A.P. Moller Holding, A.P. Moller-Maersk’s majority owner, on Wednesday (4 October) said it signed a comprehensive Framework Agreement (FWA) with its Egyptian sponsors and partners to enable and accelerate large scale production of green methanol in Egypt.

C2X is aiming to build, own, and operate assets to produce green methanol at scale with A.P. Moller Holding as majority owner and A.P. Moller - Maersk as minority owner.

The Framework Agreement is deepening the partnership and joint efforts for C2X to establish the project, which is strategically located close to the Suez Canal, in collaboration with the General Authority for Suez Canal Economic Zone (SCZone), the Egyptian New and Renewable Energy Authority (NREA), the Egyptian Electricity Transmission Company (EETC), and the Sovereign Fund of Egypt for Investment and Development (TSFE).

The efforts will include the establishment of projects for generating green energy from wind and solar sources.

Brian Davis, Chief Executive Officer of C2X, said: “This is an important step forward for the global transition to green methanol. Egypt has many natural advantages that support a world class green methanol project including access to low-cost renewables and proximity to the Suez Canal and maritime customers.”

“Signing of the Framework Agreement today marks another important milestone in realising our ambition to be a leading producer of green methanol. We thank the Government of Egypt and our Egyptian Sponsors for their continued support and look forward to working with them to make our project a success we can all be proud of.”

Mr. Waleid Gamal El-Dien, SCZONE's Chairman, said: “Today's FWA is the 10th framework agreement within Memorandums of Understanding signed by SCZONE which aims to transform to a green economy and its various industrial applications, making use of its capabilities related to the integration of its ports with affiliated industrial zones.”

Manifold Times previously reported C2X announcing its plans to have an annual production capacity of more than three million tonnes by 2030.

C2X is majority owned by A.P. Moller Holding with Maersk as a 20% shareholder, together providing a solid foundation for the company. Maersk has the intention to source green methanol from C2X.

Photo credit: C2X
Published: 5 October, 2023

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Methanol

Marine Fuels 360: Methanol presents easiest path towards maritime decarbonisation, says DNV

Captain Singh was confident the bunkering infrastructure in Singapore will be ready to welcome methanol-fuelled vessels due to the coordinated efforts between various agencies.

Published

9 hours ago

December 6, 2023

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The use of methanol as a bunker fuel presents the least path of resistance towards maritime decarbonisation, believes the Principal Consultant, Head, Research and Development, Maritime Advisory, SE Asia, Pacific, and India at classification society DNV.

Captain Satinder Singh Virdi was speaking amongst panellists in the Methanol Panel session at Marine Fuels 360 on Tuesday (28 November) when he offered an opinion about reasons behind the increasing awareness of methanol as a marine fuel.

“The ease of adopting methanol is perhaps one of the reasons. The product exists as a liquid at ambient temperature and has been carried on vessels for the last 80 years, so it is not something new,” he stated.

“What is new is we're going to use methanol as a bunker fuel. Ease of adoption, ESG compliance, as well as getting closer to decarbonisation goals are the drivers for shipowners adopting methanol.”

According to Captain Singh, the trend for methanol-fuelled newbuildings have continued in October where DNV’s Alternative Fuels Insight (AFI) platform recorded 230 vessels on order where 156 comprises of containerships.

“The trend started when Maersk increased their newbuild order of methanol-fuelled vessels; before that it was mostly LNG as an alternate fuel,” he said.

Captain Singh was confident the bunkering infrastructure in Singapore will be ready to welcome methanol-fuelled vessels due to the coordinated efforts between the Singapore Shipping Association, Maritime and Port Authority of Singapore, Global Centre for Maritime Decarbonisation, and other organisations.

“We are all working together to support Singapore’s future maritime operations. Singapore is an international maritime centre, and we want to establish ourselves as the leading maritime city,” he explained.

“I would call this a cohesive action by all relevant partners, such as shipowners, charterers, classification societies, ship managers, bunker testing firms, mass flow meter manufacturers, bunkering companies, and more.

“It is important for Singapore to be seen as a fair supporter of bunkering in terms of reliability and reputation, and if things go wrong actions are taken very strictly to ensure transparency and quality. So, in that way I am satisfied to say that ‘yes’ we have what it takes to make methanol bunkering happen.”

Photo credit: Informa
Published: 6 November 2023

Alternative Fuels

CENIT and Hinicio to explore feasibility of zero-carbon bunkers in Colombia

Mission is to explore the feasibility of producing, storing, supplying, and exporting zero-carbon bunker fuels at strategic port locations in Colombia, says centre.

Published

9 hours ago

December 6, 2023

Admin

The Centre for Innovation in Transport (CENIT) on Tuesday (5 December) said it was teaming up with Hinicio, a strategy consulting firm focused on sustainable energy and mobility, for a project funded by The World Bank in Colombia.

CENIT said their mission was to explore the feasibility of producing, storing, supplying, and exporting zero-carbon bunker fuels at strategic port locations in Colombia.

“The shipping industry is poised to become a major demand centre for zero-carbon fuels, particularly green hydrogen-based options like green ammonia and green methanol,” CENIT said in a social media post.

“And it will play a pivotal role in transporting these zero-carbon fuels from emerging production hubs in Latin America to high-demand centres in Europe and East Asia.”

“This project takes us a step closer to decarbonising ports and fostering a sustainable future for maritime transportation.”

Photo credit: Luis Desiro on Unsplash
Published: 6 December, 2023

Methanol

Suez Canal and Scatec ink MoU for green methanol bunkering in East Port Said

Deal aims to issue a licence to Scatec to conduct green fuel bunkering operations in East Port Said and will include investments in production capacity of 100,000 tonnes of green methanol per year by 2027.

Published

1 day ago

December 5, 2023

Admin

Suez Canal and Scatec inks MoU for green methanol bunkering in East Port Said

The Suez Canal Economic Zone (SCZONE) Authority on Sunday (3 December) said it has signed a memorandum of understanding (MoU) with Norwegian renewable energy company Scatec for green methanol bunkering in East Port Said, Egypt.

The MoU was signed at the sidelines of the 2023 UN Climate Change Conference (COP28).

The project will cost USD 1.1billion and will include investments in clean energy generation, with a production capacity of up to 100,000 tonnes of green methanol per year by 2027.

It will use 190 megawatts of electrolyzer capacity, powered by 317 megawatts of wind energy and 140 megawatts of solar energy.

The deal also aims to issue a licence to Scatec to conduct green fuel bunkering operations in East Port Said.

Waleid Gamal El-Dien, chairman of SCZONE, said: “The signing of a new MoU with Scatec represents an extension of the partnership that began with the company’s first project in SCZONE, which was inaugurated by President Abdel Fattah El-Sisi on the sidelines of COP27 in November 2022, and recently succeeded in exporting the world’s first shipment of green ammonia.”

“SCZONE’s regional pioneering in the green bunkering field came as a result of SCZONE’s ports readiness to provide this service, in addition to the prompt move towards green fuel production in cooperation with major international companies.”

“This is to maximise the benefit of integrated industrial zones equipped with world-class infrastructure, in addition to the investment incentives and supportive work environment that SCZONE provides to its success partners.”

“East Port Said is the destination of the green bunkering project due to its location northern Suez Canal, and its integration with the ports of East Port Said and West Port Said, and therefore it is located near the ship’s waiting areas.”

“We emphasise that green bunkering is not a main target in itself, but an imperative global requirement, especially since shipping is responsible for 10% of the world’s carbon emissions, so the use of green fuels in maritime transport will significantly affect the reduction of carbon emissions.”

Photo credit: SCZone
Published: 5 December, 2023