AD Ports Group, a global trade, logistics, and industry facilitator, has signed a Memorandum of Understanding (MoU) with Transmar, a leading container shipping line and terminal operator in the MENA region, and Orascom Construction, a prominent global engineering and construction contractor.
The MoU outlines the development of a green methanol storage and export facility aimed at supplying low-carbon fuel for maritime transport and establishing clean alternative energy storage solutions worldwide.
Green methanol, a synthetic fuel produced renewably without polluting emissions, can be derived from green hydrogen. As a low-carbon liquid fuel, it is a promising alternative to fossil fuels, especially in sectors where decarbonization is challenging.
Furthermore, green methanol offers several advantages over fossil fuels: it burns cleanly with fewer and non-toxic emissions, is easier, safer, and cheaper to store and transport as a liquid using existing infrastructure, and is highly efficient and versatile, being produced from renewable feedstocks like renewable hydrogen and biomethane. Beyond maritime use, green methanol can also help decarbonize hard-to-abate industries such as chemicals and plastics.
The new facility will provide bunkering solutions for mainliners that have ordered green methanol-powered vessels, aligning with AD Ports Group’s decarbonization strategy and expansion into clean energy liquid bulk storage.
Also, industry sources expect over 100 methanol-fueled ships to be in service by 2026, representing about a million tonnes of additional methanol demand. According to Drewry and Clarksons, the methanol-fueled vessel fleet is projected to grow from 2% to 14% of the global fleet based on current orders.
“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,” stated Captain Ammar Mubarak Al Shaiba, CEO – Maritime & Shipping Cluster, AD Ports Group.
In line with the International Maritime Organization’s (IMO) greenhouse gas (GHG) strategy and regulations to decarbonize international shipping by 2050, green hydrogen-based fuels are poised to become the foundation of this transition for the maritime industry, according to the International Renewable Energy Agency (IRENA). Consequently, global demand for green methanol is projected to rise to 4 million tonnes annually over the next five years, based on current sector orders.
