Maersk Signs New Deal in Egypt to Speed Up Green Fuel Production

Danish shipping giant Maersk has signed a cooperation agreement with Egyptian authorities to jointly explore the establishment of large-scale green fuel production in the country in pursuit of net-zero shipping, according to World Gas on March 29.

Following the recent fuel purchase agreement, Maersk signed a memorandum of understanding with representatives of the authorities on Monday, March 28, in the presence of the Egyptian Prime Minister.

Now, the company is working with the Suez Canal Economic Zone Authority (SCZone), the Egyptian New and Renewable Energy Authority (NREA), the Egyptian Electricity Transmission Company (EETC) and the Egyptian Sovereign Fund for Investment and Development (TSFE).

As part of the agreement, the parties will conduct a feasibility study by the end of 2022 to study the production of hydrogen and green marine fuels in Egypt, powered by renewable energy, with Maersk as the off-taker.

Commenting on the partnership, Henriette Hallberg Thygesen, CEO of Maersk Fleet & Strategic Brands, said: "Egypt has excellent conditions for renewable energy production and is ambitious to become a global leader in the green energy value chain. We are delighted to be able to leverage With over 100 years of business relationships in the country, we explore options together.

“The biggest challenge facing the global shipping industry as it decarbonises is access to sufficient quantities of green energy and fuels at cost-competitive prices. For Maersk, our recently announced strategy with six industry-leading companies Partnerships are key to meeting this challenge, but in order to stay on the 1.5-degree path, we need to scale up over this 10-year period. That’s exactly what our partners are exploring.”

According to Ayman Soliman, chief executive of Egypt's sovereign fund, the partnership is an opportunity to add a new dimension to the roadmap to achieve zero-emissions goals and potentially expand green bunkering services in the Suez Canal.

Going forward, Maersk intends to explore similar opportunities in other regions with strong renewable energy development potential, leveraging commercial and government relationships to provide opportunities for countries and business players to meet the rapid acceleration in green fuel production.