AD Ports, Transmar, and Orascom to build Egypt green methanol facility

ABU DHABI : A site for the storage and export of green methanol for the maritime industry is to be built in Egypt under a new Memorandum of Understanding (MoU).

Engineering and construction firm Orascom Construction, port and logistics group AD Ports and shipping line and terminal operator Transmar signed the agreement to develop the facility and bring green methanol supply capabilities to Egypt.

The partners said that building such a facility in the area will provide a bunkering solution to the shipowners who have ordered methanol-powered vessels and seek to lower their emissions through the use of low carbon green methanol.

The group said more than 100 methanol-fuelled ships will be in service from 2026, adding around 1m tonnes of methanol demand, according to Drewry and Clarksons. Global demand for green methanol is expected to increase to 4m tonnes per year in the next five years based on current orders from the sector, according to the International Renewable Energy Agency (IRENA). 

Captain Ammar Mubarak Al Shaiba, CEO – maritime & shipping cluster, AD Ports Group, said: “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.”