UAE’s AD Ports Group to develop green methanol facility in Egypt

Image credit: AD Ports Group

UAE’s AD Ports Group said on Tuesday that it has signed an MoU with a consortium of Egyptian companies to develop a green methanol storage and export facility to supply low-carbon fuel for maritime transport.

AD Ports said, in a statement, that the green methanol facility presents an opportunity to establish clean alternative energy storage solutions. This synthetic fuel is produced renewably from green hydrogen and without polluting emissions.

The ports operator said the chemical compound is a promising alternative to fossil fuels in industries where decarbonisation is challenging.

Industry experts expect more than 100 methanol-fuelled ships to be in service from 2026, representing around a million tonnes of additional methanol demand. Green methanol, as a fuel, has several benefits compared to fossil fuels. It is clean-burning and has less and non-toxic emissions.

Furthermore, as a liquid, green methanol is a highly efficient and versatile fuel as it is produced from renewable feedstocks including renewable hydrogen and biomethane.

Beyond the maritime sector, green methanol can help decarbonise other hard-to-abate industries, including chemical and plastics.

The addition of a facility, which is being developed in partnership with Orascom Construction and Transmar, will provide bunkering solutions for those mainliners who have ordered green methanol-powered vessels.

“By signing this MoU with Orascom Construction who have vast international experience in bulk liquid terminals for Methanol storage and Transmar, who have decades of expertise in this region and within terminal operations, AD Ports Group and its subsidiaries are taking a significant step towards the sustainable future of energy,” said Ammar Mubarak Al Shaiba, CEO – Maritime & Shipping Cluster at AD Ports.

Meanwhile, AD Ports continues to expand its presence in major trade regions and maritime routes, investing in developing ports as part of the logistics firm’s broader strategy to enhance global trade and support economic diversification in the UAE.

The shipping and logistics giant signed a 30-year concession agreement worth $200m to develop, manage and operate the Egyptian multi-purpose terminal in the Red Sea port of Safaga in March 2023.

AD Ports, controlled by state investor ADQ, operates the deepwater Khalifa Port in Abu Dhabi along with other ports and logistics parks in the city and the Indian Ocean Fujairah port.

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