Abu Dhabi-based ports and logistics giant AD Ports Group, container shipping firm Transmar, and engineering company Orascom Construction have signed an MoU for the development of a green methanol storage and export facility for maritime transport in Egypt.
As a fuel, green methanol has several benefits compared to fossil fuels. It is clean-burning and has less and non-toxic emissions. As a liquid, it is easier, safer, and cheaper to store, transport, and handle, as existing infrastructure can be used.
It is also a highly efficient and versatile fuel as it is produced from renewable feedstocks including renewable hydrogen and biomethane.
The addition of a facility in this area will provide bunkering solutions for mainliners who have ordered green methanol-powered vessels and is aligned with AD Ports Group’s expansion into clean energy liquid bulk storage.
Industry sources anticipate that more than 100 methanol-fuelled ships will be in service from 2026, representing around a million tonnes of additional methanol demand. According to Drewry and Clarksons, the methanol-fuelled vessel fleet will grow from 2% to 14% of the global fleet based on orders already placed.
Also, 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.
“This initiative not only aligns with the UAE’s decarbonisation goals but also accelerates the energy transition in shipping, positioning us at the forefront of the green hydrogen revolution and enabling us to contribute to global environmental stewardship and economic diversification,” said Ammar Mubarak Al Shaiba, CEO of the Maritime & Shipping Cluster at AD Ports Group.
