MAERSK and Egyptian authorities have entered into a partnership agreement to explore the establishment of large-scale green fuel production in Egypt.
The memorandum of understanding was signed in the presence of the Egyptian prime minister in a bid to accelerate the supply of green fuel and the global transition to net-zero shipping.
Under the partnership, Maersk has joined forces with the General Authority for Suez Canal Economic Zone (SCZone), the Egyptian New and Renewable Energy Authority, the Egyptian Electricity Transmission Company, and the Sovereign Fund of Egypt for Investment and Development.
It closely follows the announcement of six new partnerships between Maersk and renewable energy-sourcing companies based in China, North America, and South America, through which Maersk intends to boost the global production of green methanol.
Henriette Hallberg Thygesen, CEO, Fleet and Strategic Brands at Maersk, said Egypt has excellent conditions for renewable energy production and ambitions to become a global leader in the green energy value chain.
“We are very excited to be able to explore options together, drawing on our more than 100 years of business relations in the country,” she said.
“The availability of green energy and fuel in sufficient quantities and at cost competitive price levels is the single biggest challenge to the decarbonisation of global shipping.
“For Maersk, our recently announced strategic partnerships with six industry leading companies are key in addressing this challenge, but to stay on the 1.5-degree pathway even more scale is needed within this decade. That is what this partnership is exploring.”
The parties will be conducting a feasibility study before the end of 2022 to examine Egypt-based hydrogen and green marine fuel production.
SCZone chairman Eng.Y ehia Zaki said the project will evolve under the organisation’s strategic integrated areas of ports and industrial parks around the Suez Canal and under its longstanding relationship with Maersk.
“I am looking forward to the evolvement of this project, which meets our mutual target of transforming into the green economy,” he said.
Ayman Soliman, CEO of the Sovereign Fund of Egypt, said the partnership is an opportunity to strengthen the relationship between Maersk and the Egyptian government.
“Specifically for The Sovereign Fund of Egypt, this potential opportunity adds a new dimension to our roadmap towards zero emission targets,” he said.
“Maersk’s bid to accelerate the supply of green fuels and the global transformation to net-zero shipping will expand the Suez Canal’s service offering as a main global hub for green bunkering in the region.”
Maersk said it intends to explore similar opportunities in other regions with strong potential for renewable energy development.
The company plans to draw on business and governmental relations to facilitate opportunities for nations and commercial players to embrace green fuel production as a vital component in the decarbonisation of shipping.
