Suez Canal and Scatec ink MoU for green methanol bunkering in East Port Said
- Published
by Admin
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
