AD Ports Consortium Secures Agreement to Build Sustainable Methanol Plant in Egypt

AD Ports Group (ADX: ADPORTS), a key player in global trade, logistics, and industry facilitation, alongside Transmar, a prominent container shipping line and terminal operator in the MENA region, and Orascom Construction, a leading global engineering and construction contractor renowned for its expertise in infrastructure and industrial project development, have entered into a Memorandum of Understanding (MoU) for the establishment of a green methanol storage and export facility. This initiative aims to provide low-carbon fuel for maritime transport, offering an avenue to introduce clean alternative energy storage solutions on a global scale.

Green methanol, a synthetic fuel manufactured sustainably and devoid of polluting emissions, can be derived from green hydrogen. This compound serves as a low-carbon liquid fuel and holds significant promise as an alternative to fossil fuels, particularly in regions grappling with the challenge of decarbonization.

Green methanol offers numerous advantages over fossil fuels as a fuel source. It burns cleanly, emitting fewer and non-toxic emissions. Its liquid form facilitates easier, safer, and more cost-effective storage, transportation, and handling, leveraging existing infrastructure. Additionally, it serves as a highly efficient and adaptable fuel, derived from renewable feedstocks such as renewable hydrogen and biomethane. Beyond the maritime sector, green methanol holds promise for decarbonizing other challenging industries like chemicals and plastics.

The establishment of a facility in this region will offer bunkering solutions for major shipping companies that have invested in green methanol-powered vessels. This initiative aligns with AD Ports Group's overarching decarbonization strategy and its expansion into the storage of clean energy liquid bulk.

Captain Ammar Mubarak Al Shaiba, CEO of the Maritime & Shipping Cluster at AD Ports Group, commented: "Through this MoU with Orascom Construction, renowned for its extensive international experience in bulk liquid terminals for Methanol storage, and Transmar, with decades of regional expertise in terminal operations, AD Ports Group and its subsidiaries are taking a significant stride towards a sustainable energy future. This endeavor not only aligns with the UAE's decarbonization objectives but also accelerates the energy transition in shipping, positioning us at the forefront of the green hydrogen revolution. It enables us to contribute to global environmental stewardship and economic diversification."

In accordance with the International Maritime Organization's (IMO) greenhouse gas (GHG) strategy and regulations targeting the decarbonization of international shipping by 2050, green hydrogen-based fuels are poised to play a central role in this transition for the maritime sector, as stated by the International Renewable Energy Agency (IRENA). Consequently, it is projected that global demand for green methanol will rise to 4 million tonnes annually within the next 5 years, reflecting current orders within the industry.