A memorandum of understanding (MoU) for the construction of a green methanol storage and export facility has been signed by AD Ports Group, Transmar, and Orascom Construction. With the goal of providing low-carbon fuel for marine transportation, this facility will offer a chance to develop sustainable alternative energy storage solutions on a global scale.
Green hydrogen may be used to create green methanol, a synthetic fuel that is renewable and emits no pollutants. In regions where decarbonisation is a significant concern, this chemical compound is a possible substitute for fossil fuels and can be utilised as a low-carbon liquid fuel.
When it comes to fuel, green methanol is superior to fossil fuels in a number of ways. It emits less harmful fumes and burns cleanly. Since the existing infrastructure can be used, handling, storing, and transporting is less expensive, safer, and easier when it is a liquid. Because it is made from renewable feedstocks like biomethane and renewable hydrogen, it is also incredibly efficient and adaptable. Green methanol can aid in the decarbonisation of hard-to-abate businesses like plastics and chemicals in addition to the maritime sector.
The development of a facility in this region is consistent with AD Ports Group’s overall decarbonisation strategy and growth into clean energy liquid bulk storage. It will offer bunkering alternatives for those mainliners that have bought green methanol powered boats.
According to Drewry and Clarksons, the fleet of methanol-fueled vessels will increase from 2% to 14% of the global fleet based on orders already placed. Industry sources predict that more than 100 methanol-fueled ships will be in service starting in 2026, representing about a million tonnes of additional methanol demand.
“By signing this MoU with Orascom Construction who have vast international experience in bulk liquid terminals for Methanol storage, and Transmar, who have decades of expertise in this region and within terminal operations, AD Ports Group and its subsidiaries are taking a significant step towards the sustainable future of energy. This initiative not only aligns with the UAE’s decarbonisation goals but also accelerates the energy transition in shipping, positioning us at the forefront of the green hydrogen revolution and enabling us to contribute to global environmental stewardship and economic diversification.”
Captain Ammar Mubarak Al Shaiba, CEO of Maritime & Shipping Cluster at AD Ports Group.
Green hydrogen-based fuels are expected to be the cornerstone of the maritime industry’s transition towards the International Maritime Organization’s (IMO) greenhouse gas (GHG) strategy and regulations, which aim to decarbonise international shipping by 2050, as predicted by the International Renewable Energy Agency (IRENA). Therefore, based on existing orders from the sector, it is anticipated that the worldwide demand for green methanol would climb to 4 million tonnes per year in the next five years.
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