Maersk’s new green methanol-producing subsidiary C2X has inked a framework agreement worth up to $3bn with the Egyptian government to accelerate large-scale production of the fuel.
In the presence of the Egyptian prime minister, C2X signed a framework agreement with its Egyptian sponsors and partners to build a green methanol plant near the Suez Canal.
“This is an important step forward for the global transition to green methanol. Egypt has many natural advantages that support a world-class green methanol project including access to low-cost renewables and proximity to the Suez Canal and maritime customers,” said Brian Davis, the CEO of C2X.
C2X aims to develop, own and operate green methanol production facilities in strategic locations with Spain, the US and Australia all eyed. The venture is majority owned by A.P. Moller Holding with A.P. Moller-Maersk as minority owner.
Maersk last month held a naming ceremony for its first methanol-fuelled ship with many more under construction in Asia.