Minister of Petroleum and Mineral Resources, Tarek El Molla, and the Norwegian Ambassador to Cairo, Hilde Klemetsdal, witnessed the signing of an agreement for the joint development of a new green methanol production project, the first of its kind in Egypt and the Middle East, the ministry said in a statement.

The deal was sealed by the Alexandria National Refining and Petrochemical Company “ANRPC” and the Norwegian company Scatec, a pioneer in the field of green energy solutions, in cooperation with the Egyptian Company for Bioethanol. The agreement was signed by Salah Gaber, ANRPC Chairman, and Terje Pilskog, Scatec CEO.

El Molla stated that the signed agreement is a new step that reflects the progress of the petroleum sector on the path of implementing green energy projects and low-emissions fuel, in cooperation with leading international companies.

The new project aims to produce 40,000 tons annually of green methanol, which can be increased to 200,000 tons annually, within the framework of encouraging the transition to green production, which opens new export horizons for the Egyptian petrochemical sector’s green products and enhances its competitiveness and presence in foreign markets.

The project, which Scatec attaches great importance to, will contribute to placing Egypt on the global map of countries producing this green fuel to supply ships. It will include the construction of renewable energy stations with capacities of no less than 40 megawatts of solar energy and 120 megawatts of wind energy, in addition to a green hydrogen analyzer with a capacity of 60 megawatts. As well as a seawater desalination plant and production and storage stations for green methanol. It will also include the first station in Egypt to supply ships with green biofuel. It will be located in the port of Damietta, with investments of about $450 million.

Pilskog confirmed that the signing is a new step to enhance cooperation with Egypt, which comes in the priority of the company’s interests to provide high-quality sustainable green fuel at competitive prices, which contributes to placing Egypt at the top of the list of countries that manufacture and export green chemical products and makes it a destination and a green refueling hub for global shipping lines.