Maersk to scale up green fuel production in Egypt
Integrated logistics company Maersk and Egyptian authorities have signed a partnership agreement to explore green fuel production in Egypt.
A memorandum of understanding (MoU) was signed in a joint bid to accelerate green fuel supplies and global transformation to net-zero shipping.
The MoU was signed in the presence of the Egyptian Prime Minister, Mostafa Madbouly.
The partnership follows six fuel sourcing partnerships announced earlier this month. Maersk joined forces with the General Authority for Suez Canal Economic Zone (SCZone), the Egyptian New and Renewable Energy Authority (NREA), the Egyptian Electricity Transmission Company (EETC), and the Sovereign Fund of Egypt for Investment and Development (TSFE).
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Henriette Hallberg Thygesen, Maersk CEO of Fleet and Strategic Brands, commented on the announcement in a statement, “Egypt has excellent conditions for renewable energy production and ambitions to become [a] global leader in the green energy value chain. We are very excited to be able to explore options together, drawing on our more than 100 years of business relations in the country.”
Thygesen went on to comment on the strategic partnership as key for addressing challenges impeding shipping decarbonisation.
“The availability of green energy and fuel in sufficient quantities and at cost competitive price levels is the single biggest challenge to the decarbonisation of global shipping.
“For Maersk, our recently announced strategic partnerships with six industry leading companies are key in addressing this challenge, but to stay on the 1.5-degree pathway even more scale is needed within this decade. That is what this partnership is exploring.”
The parties will be conducting a feasibility study before the end of 2022 to examine an Egypt-based hydrogen and green marine fuel production. This will be powered by renewable energy with Maersk as committed offtaker.
CEO of The Sovereign Fund of Egypt, Ayman Soliman, also commented on the announcement as an opportunity to strengthen key strategic partnerships.
“Specifically for The Sovereign Fund of Egypt, this potential opportunity adds a new dimension to our roadmap towards zero emission targets. Maersk’s bid to accelerate the supply of green fuels and the global transformation to net-zero shipping will expand the Suez Canal’s service offering as a main global hub for green bunkering in the region.”
Maersk intends to explore similar opportunities in other regions with strong potential for renewable energy development. They aim to leverage business and government relations to spur rapid acceleration in green fuel production, which is key to decarbonise shipping.
