$450 million ..Investments in a green methanol production project in Damietta Port

Tarek El-Molla, Minister of Petroleum and Mineral Resources, and the Norwegian Ambassador to Cairo, Hilde Kilmtsdal, witnessed the signing of a joint development agreement for a new green methanol production project, the first of its kind in Egypt and the Middle East.

The agreement was signed between the Alexandria National Refining and Petrochemical Company (ENREPC) and the Norwegian company Skatec, a leading company in the field of green energy solutions, in cooperation with the Egyptian Bioethanol Company.

Green energy

Tariq Al-Mulla, Minister of Petroleum and Mineral Resources, affirmed that the signed agreement is a new step that reflects the progress of the petroleum sector on the path of implementing green energy and low-emission fuel projects in cooperation with leading international companies, after the recent conclusion of the green ammonia project agreement.

He pointed out that this is within the framework of keeping pace with the continuous changes in the energy sector and the petroleum sector's adoption of sustainable development strategies, whether by removing carbon from oil and gas industry operations or establishing projects for green products.

40,000 tons green methanol

The new project aims to produce 40,000 tons annually of green methanol, which can be increased to 200,000 tons annually, within the framework of encouraging the transition to green production, which opens new export horizons for the Egyptian petrochemical sector of green products and enhances its competitiveness and presence in foreign markets by keeping pace with its requirements.      

Green methanol is a clean fuel for fueling ships. So, the project will contribute to supply ships, it will include the construction of renewable energy stations with capacities of at least 40 megawatts for solar energy and 120 megawatts for wind energy, in addition to a green hydrogen analyzer with a capacity of 60 megawatts.

Green fuel

It is noteworthy that this project is one of two projects for green energies within the framework of the partnership between the Egyptian petroleum sector and the Scatec Company, after the conclusion of the green ammonia production project agreement at the end of last February with both the Egyptian Petrochemical Holding Company and MOPCO in Damietta.

The project provides sustainable, high-quality green fuel at competitive prices, which contributes to placing Egypt at the top of the list of countries that manufacture and export green chemical products, and makes it a destination and hub for green fuel supply for global shipping lines.