Shipping lines are gradually making the transition to low carbon fuel. This is where the new green methanol storage and export facility in Egypt will plays its part. Image Credit: Supplied

Dubai: The AD Ports Group is part of a three-way aliance that will build a green methanol storage and export facility in Egypt, which will supply low-carbon fuel for ships. The other partners are Transmar, a container shipping line and terminal operator in the MENA region, and Orascom Construction of Egypt.

"By signing this MoU, AD Ports Group and its subsidiaries are taking a significant step towards the sustainable future of energy," said Capt. Ammar Mubarak Al Shaiba, CEO – Maritime & Shipping Cluster, AD Ports Group. "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."

The new facility in Egypt will provide bunkering solutions for those shipping lines that have ordered green methanol powered vessels. It is aligned with AD Ports Group’s overall decarbonisation strategy and expansion into clean energy liquid bulk storage.

Methanol-fueled ships

Industry estimates anticipate that more than 100 methanol-fueled ships will be in service from 2026, representing around 1 million tonnes of additional methanol demand. According to projections by Drewry and Clarksons, the methanol-fuelled vessel fleet will grow from 2 per cent to 14 per cent of the global fleet based on orders already placed.

Green methanol is a synthetic fuel 'produced renewably and without polluting emissions', and can be sourced from green hydrogen. The chemical compound can be used as a low-carbon liquid fuel and is a 'promising alternative' to fossil fuels in areas where decarbonisation is a major challenge.

As a fuel, green methanol 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 fuel as it is produced from renewable feedstocks including renewable hydrogen and biomethane. (Aside from the maritime industry, green methanol can help decarbonise other hard-to-abate industries, including chemical and plastics.)