On Sunday, Egypt signed a joint development agreement with Norway’s Scatec to establish the country’s first green methanol production project in Damietta Port with investments worth around $450 million.
The project is the “first of its kind” in Egypt and the Middle East and will “contribute to placing Egypt on the global map of nations that produce green fuel for ships,” the Ministry of Petroleum and Mineral Resources said in a statement.
The project will produce 40,000 tons of green methanol per year, which could be increased to 200,000 tons annually to encourage the shift towards green production.
It will also provide new opportunities for the Egyptian petrochemical sector to export green products, the statement explained.
The agreement was signed between the Alexandria National Refining and Petrochemicals Company (ANRPC) and the leading Norwegian renewable energy solutions provider Scatec in collaboration with the Egyptian Bioethanol Company.
The project includes the construction of renewable energy stations with capacities of no less than 40 MW for solar power and 120 MW for wind power.
It also includes the construction of a 60 MW capacity green hydrogen analyzer.
As per the agreement, the project will establish a seawater desalination plant and green methanol production and storage stations.
Moreover, Egypt will establish its first station to supply ships with green bio-fuel.
Chairman of Scatec Terje Pilskog emphasized that the signing of the agreement reflects the priority that the company gives to cooperating with Egypt to provide sustainable, high quality green fuel at competitive prices.
The agreement, Pilskog added, will contribute to placing Egypt at the forefront of green chemical product manufacturing and exporting countries, and will make the country a destination and hub for supplying green fuel to global shipping lines.
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