December 8, 2023 [Energy Portal]- Scatec, a renowned Norwegian renewable energy company, and the Suez Canal Economic Zone (SCZONE) have recently inked a game-changing memorandum of understanding (MoU).
The agreement aims to develop an advanced green fuel bunkering terminal in East Port Said, Egypt, heralding a new era of sustainable energy practices in the region. This groundbreaking project carries a remarkable price tag of $1.1 billion, spearheading investments in clean energy generation. By 2027, it is expected to have a staggering production capacity of up to 100,000 tons of green methanol per year.
The proposed green fuel bunkering terminal will be powered by an impressive combination of renewable energy sources. At the core of the operation will be 190 megawatts of electrolyzer capacity, complemented by 317 megawatts of wind energy and 140 megawatts of solar energy. This marriage of cutting-edge technologies will ensure a reliable and sustainable production process.
The MoU was cemented by the signatures of prominent figures including Waleed Gamal El-Din, Chairperson of SCZONE, Alaa Hagar, Head of the Technical Office of the Minister of Petroleum, and Terje Pilskog Bielskog, CEO of Scatec. Esteemed representatives from the African Development Bank and the British International Development Corporation witnessed the signing, alongside Tarek El Molla, the Minister of Petroleum and Mineral Resources, and Rania Al Mashat, the Minister of International Cooperation.
Emphasizing the significance of the partnership, Gamal El-Din expressed his satisfaction with joining forces with Scatec. The collaboration began in November 2022 when Scatec initiated its initial projects in the region, exporting the world’s first green ammonia shipment. He commended SCZONE’s pioneering role in green fuel bunkering, attributing its success to the region’s well-equipped ports and unwavering commitment to eco-friendly fuel production, with the support of major international corporations. Gamal El-Din also highlighted the benefits of the integrated industrial zones within the SCZONE, which provide indispensable infrastructure, investment incentives, and a favorable working environment.
The choice of East Port Said for the project holds additional significance. Situated north of the Suez Canal and seamlessly connected to the ports of East and West Port Said, the location offers convenient access to ship waiting areas. Emphasizing the global importance of green fuel bunkering, Gamal El-Din noted that maritime shipping currently accounts for 10% of the world’s carbon emissions. Thus, utilizing green fuel in maritime transport will play a pivotal role in substantially reducing these harmful emissions.
Bielskog, CEO of Scatec, expressed his delight in partnering with SCZONE, affirming Scatec’s commitment to leveraging its vast expertise and experience in renewable energy to produce green methanol. This clean and versatile fuel holds tremendous potential for various sectors. Bielskog further stressed that this project aligns perfectly with Scatec’s vision and strategy to become an undisputed global leader in green energy solutions.
This landmark collaboration between Scatec and SCZONE represents a monumental leap forward for Egypt’s green fuel bunkering capabilities. It serves as a catalyst for enhancing the nation’s competitiveness and firmly positioning it as a major player within the global green energy industry.
FAQ
1. What is the purpose of the green fuel bunkering terminal in East Port Said, Egypt?
The green fuel bunkering terminal aims to develop a sustainable energy infrastructure that produces green methanol and caters to the rising demand for eco-friendly fuel in maritime shipping.
2. What renewable energy sources will power the project?
The project will be powered by a combination of wind energy, solar energy, and electrolyzer capacity, reinforcing its commitment to clean and renewable energy practices.
3. Why is the choice of location important for the project?
East Port Said was strategically selected due to its proximity to the Suez Canal and its integration with both East and West Port Said. This location offers easy access to ship waiting areas, optimizing efficiency in the bunkering process.
4. What is the significance of green fuel bunkering in reducing carbon emissions?
Maritime shipping currently contributes to 10% of the world’s carbon emissions. By adopting green fuel bunkering practices, the industry can make significant strides in reducing its environmental footprint and combat climate change.
5. How does the collaboration between Scatec and SCZONE impact Egypt’s green energy industry?
The partnership between Scatec and SCZONE marks a major milestone in the development of Egypt’s green fuel bunkering capabilities. It enhances the nation’s competitiveness and solidifies its position as a key player within the global green energy industry.
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