In a pioneering move towards sustainable energy production, Egypt has signed a deal with a Norwegian renewable energy company Scatec for joint development of a green methanol production plant at an estimated investment of $450 million. The green fuel plant will have a production capacity of 40,000 tons per year, increasing to 200,000 tonnes once fully operational.
Scatec signed the joint development agreement with Egypt’s Alexandria National Refining and Petrochemicals Company (ANRPC), and the Egyptian Bioethanol Company on the 14th of May.
According to the agreement, the green methanol production plant will be built in the port of Damietta, on the eastern edge of the Nile delta. The facility is claimed to be the first of its kind in the Middle East once completed.
The project will include construction of a 40 MW solar energy plant, a 120 MW wind energy plant, as well as a 60 MW green hydrogen electrolyser, a water desalination plant, and a methanol storage station.
The development of the green methanol production plant will position Egypt as a leader in green fuels for the shipping and aviation industry. The country’s Suez Canal is a major route for the global shipping industry, accounting for as much as 13% of seaborne trade globally.
Green methanol, also known as renewable methanol, is produced from renewable sources such as biomass, carbon dioxide (CO2), or green hydrogen. Unlike traditional methanol production methods that heavily rely on fossil fuels, green methanol offers a cleaner and more environmentally friendly alternative.
According to Scatec’s CEO, Terje Pilskog, the development of the green methanol production facility in Egypt will place the country among the leading green fuel producing and exporting countries.
The green methanol projects adds to the growing number of projects that Scatec has interests in, in the North African country. The company commissioned the first phase of its green hydrogen plant in Egypt’s Ain Sokhna last year during COP27, which was hosted in the North African country.
Scatec is also developing two green ammonia production projects in Egypt’s Suez Canal Economic Zone and in Damietta. The two projects will be developed at an estimated investment of $6 billion and $870 million, respectively.