Facility to aid to maritime sector decarbonisation goals
AD Ports Group, Transmar, a leading container shipping line and terminal operator in the MENA region, and Orascom Construction, a leading global engineering and construction contractor with a strong track record in the construction and development of infrastructure industrial projects, have signed an MoU for the development of a green methanol storage and export facility.
This facility will aim to supply low-carbon fuel for maritime transport, presenting an opportunity to establish clean alternative energy storage solutions globally, according to a press release.
Green methanol is a synthetic fuel produced renewably and without polluting emissions and can be produced from green hydrogen. This 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.
Benefits
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. Aside from the maritime industry, green methanol can help decarbonise other hard-to-abate industries, including chemical and plastics, the press statement continued.
The addition of a facility in this area will provide bunkering solutions for those mainliners who have ordered green methanol powered vessels and is aligned with AD Ports Group’s overall decarbonisation strategy and expansion into clean energy liquid bulk storage.
Decarbonisation goals
“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,” stated Captain Ammar Mubarak Al Shaiba, CEO, Maritime & Shipping Cluster, AD Ports Group.
In pursuit of the International Maritime Organization’s (IMO’s) greenhouse gas (GHG) strategy and regulations aimed at decarbonising international shipping by 2050, green hydrogen-based fuels are set to be the backbone of this shift for the maritime industry, according to the International Renewable Energy Agency (IRENA).
As such, global demand for green methanol is expected to increase to 4mn million tonnes annually in the next five years based on current orders from the sector.
