C2X is investing up to USD 3 to produce green fuel in the SCZone: Egypt signed a framework agreement with C2X — which is owned by AP Moller Holding and AP Moller-Maersk — worth some USD 3 bn for the production of green methanol and its derivatives in the Suez Canal Economic Zone, according to a statement. The USD 3 bn price tag is for the initial phase of the agreement, the statement noted, adding that the SCZone, Sovereign Fund of Egypt, the New and Renewable Energy Authority, and Egyptian Electricity Transmission Company inked the agreement with the companies.

The details: The company plans to produce 300k tons of green methanol per year in the project’s first phase, with that figure set to increase to 1 mn by the end of the final phase, the statement said.

REMEMBER- Danish shipping giant AP Moller-Maersk and its parent company AP Moller Holding (APMH) established C2X in September to produce and sell green methanol to the global shipping industry. The firm aims to reach an annual production output of over 3 mn tons by 2030 by pursuing large-scale green methanol projects near the Suez Canal in Egypt and the port of Huelva in Spain, among several other planned locations. The company is 20% owned by AP Moller-Maersk, with the majority 80% stake held by AP Moller Holding.

Maersk has already been laying the groundwork: The company had signed a preliminary agreement with the government during the COP27 climate summit last year to invest as much as USD 15 bn to set up clean fuel projects in Egypt. It is reportedly on course to purchase half of the government’s 545-MW Zafarana wind farm to help power green fuels production. In May, the Egyptian cabinet also approved requests by Norwegian renewables producer Scatec and Maersk to allocate a piece of land in the Gulf of Suez for a 320-MW wind farm to power their green fuel projects.