Maersk, Egypt sign MoU to explore green fuel production

Maersk and Egyptian authorities, in the presence of the Egyptian Prime Minister, signed a Memorandum of Understanding (MoU) on Monday in a joint bid to further accelerate the supply of green fuels and the global transformation to net-zero shipping.

"This partnership follows six fuel sourcing partnerships announced earlier this month, and with it Maersk joins 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)," an official statement from Maersk said.

"Egypt has excellent conditions for renewable energy production and ambitions to become global leader in the green energy value chain," says Henriette Hallberg Thygesen, CEO, Fleet & Strategic Brands, Maersk. "We are very excited to be able to explore options together, drawing on our more than 100 years of business relations in the country."

A feasibility study will be conducted before the end of 2022 to examine an Egypt-based hydrogen and green marine fuel production, powered by renewable energy with Maersk as committed offtaker.

"The availability of green energy and fuel in sufficient quantities and at 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," Thygesen added.

"Capitalising on Egypt's fundamentals and vision, SCZONE's strategic integrated areas of ports and industrial parks around the Suez Canal, and leveraging on the solid and enduring long standing relationship we have with Maersk, I am looking forward to the evolvement of this project, which meets our mutual target of transforming into the green economy," says Eng.Yhia Zaki, Chairman, SCZone.

Maersk is planning to explore similar opportunities in other regions, drawing on business and governmental relations to accelerate green fuel production.