Egypt - Scatec, a Norwegian renewable energy company, and the Suez Canal Economic Zone (SCZONE) have signed a memorandum of understanding (MoU) to develop a green fuel bunkering terminal in East Port Said, Egypt.
The project will cost $1.1bn and will include investments in clean energy generation, with a production capacity of up to 100,000 tons of green methanol per year by 2027.
The project will use 190 megawatts of electrolyzer capacity, powered by 317 megawatts of wind energy and 140 megawatts of solar energy.
The MoU was signed by Waleed Gamal El-Din, Chairperson of SCZONE; Alaa Hagar, Head of the Technical Office of the Minister of Petroleum; and Terje Pilskog Bielskog, CEO of Scatec, in the presence of Tarek El Molla, Minister of Petroleum and Mineral Resources; Rania Al Mashat, Minister of International Cooperation; and representatives of the African Development Bank and the British International Development Corporation.
Gamal El-Din expressed his happiness with the new partnership with Scatec, which started its first projects in the region in November 2022, exporting the first green ammonia shipment in the world. He added that the SCZONE is a regional leader in green fuel bunkering, thanks to the readiness of its ports and the rapid movement towards green fuel production, in cooperation with major international companies. He also highlighted the advantages of the integrated industrial zones in the SCZONE, which offer infrastructure, investment incentives, and a supportive work environment.
Gamal El-Din pointed out the importance of the East Port Said area as the location of the project, as it is north of the Suez Canal and integrated with the ports of East and West Port Said, making it close to the ship waiting areas. He also emphasized that green fuel bunkering is not only a goal, but also a global requirement, as maritime shipping accounts for 10% of the world’s carbon emissions, and using green fuel in maritime transport will have a significant impact on reducing them.
Bielskog said that he was pleased with the collaboration with SCZONE and that Scatec aims to leverage its expertise and experience in renewable energy to produce green methanol, a clean and versatile fuel that can be used in various sectors. He also said that the project is in line with Scatec’s vision and strategy to become a global leader in green energy solutions.
The partnership between Scatec and SCZONE marks a significant step forward in developing Egypt’s green fuel bunkering capabilities, enhancing its competitiveness, and positioning it as a major player in the global green energy industry.
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