C2X and Egypt Inked a $3 Billion Deal on Green Methanol
Maersk's C2X has secured a significant framework agreement with the Egyptian government valued at up to $3 billion, aiming to accelerate the production of green methanol in Egypt.
The agreement is part of C2X's initiative to achieve an annual production capacity of over three million tonnes by 2030 on a global scale.
This collaborative effort involves key entities such as 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).
C2X, a venture founded by shipping giant Maersk and its parent company AP Moller Holdings, is set to construct and manage a facility, along with wind and solar farms to power hydrogen (H2) production and methanol synthesis.
The initial phase, slated for start-up in 2027 or 2028, aims to produce around 300,000 tonnes of green methanol annually, with potential to scale up to one million tonnes, as suggested by the Suez Canal Economic Zone.
Brian Davis, CEO of C2X, emphasized Egypt's advantageous position with access to low-cost renewables and proximity to vital maritime routes. “This is an important step forward for the global transition to green methanol. Egypt has many natural advantages that support a world-class green methanol project including access to low-cost renewables and proximity to the Suez Canal and maritime customers.”
The Chairman of SCZONE, Waleid Gamal El-Dien, added: “Today’s FWA is the 10th framework agreement within memorandums of understanding (MoU) signed by SCZONE which aims to transform to a green economy and its various industrial applications, making use of its capabilities related to the integration of its ports with affiliated industrial zones.”
The framework agreement, initiated in March 2022, signifies a deeper level of collaboration with advanced technical and commercial studies, advancing their shared goal.