The General Authority for Suez Canal Economic Zone (SCZONE) and Maersk are expected to sign a contract for a green fuel project in Egypt at COP 27 next month.

SCZONE said in a recent press statement that a contract for implementing the pilot phases of the project will be signed during COP 27 in Sharm El-Sheikh next month. 

In March, the Danish shipping giant had announced that it signed an MoU with SCZONE, the New and Renewable Energy Authority (NREA), the Egyptian Electricity Transmission Company (EETC), and the Sovereign Fund of Egypt (TSFE) to conduct a feasibility study to examine hydrogen and green marine fuel production powered by renewable energy in Egypt with Maersk as committed off-taker.

According to the SCZONE statement, Maersk and Siemens Energy are collaborating on technical studies that include selection of production sites and optimal production process for e-Methanol.

Chairman Waleid Gamal Eldein said: “SCZONE is thrilled with the cooperation between Maersk and Siemens energy on this project, which in turn is enriching the accuracy of technical studies related to the optimal production process of e-Methanol.”

In March, Danish green energy projects developer and operator, European Energy, had awarded a contract to Siemens Energy to supply a 50-megawatt electrolyser plant for its e-Methanol production facility to supply Maersk and the fuel retailer Circle K among others.

The same month, Maersk announced that it signed strategic partnerships with six companies - CIMC ENRIC, European Energy, Green Technology Bank, Orsted, Proman, and WasteFuel - with the intent of sourcing at least 730,000 tonnes/year of green methanol by end of 2025 to power a fleet of 12 ships, each of 16,000 TEU capacity.

(Writing by Eman Hamed; Editing by Anoop Menon)