AD Ports Group, a facilitator of global trade, logistics and industry, 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 AD Ports's 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.
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.
Industry sources anticipate that more than 100 methanol-fuelled ships will be in service from 2026, representing around a million tonnes of additional methanol demand, and according to Drewry and Clarksons, the methanol-fuelled vessel fleet will grow from 2% to 14% of the global fleet based on orders already placed.
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 4 million tonnes per year in the next 5 years based on current orders from the sector.