C2X, a company which is majority owned by A.P. Moller Holding with A.P. Moller – Maersk as minority shareholder, has signed a comprehensive Framework Agreement (FWA) with the aim of enabling and accelerating large scale production of green methanol in Egypt.
The Framework Agreement deepens the partnership with the General Authority for Suez Canal Economic Zone (SCZone), the Egyptian New and Renewable Energy Authority (NREA), the Egyptian Electricity Transmission Company (EETC), and the Sovereign Fund of Egypt for Investment and Development (TSFE). It will enable C2X to establish the project, which is strategically located close to the Suez Canal.
The joint efforts of C2X and its partners will include the establishment of projects for generating green energy from wind and solar sources.
Brian Davis, C2X CEO said: “This is an important step forward for the global transition to green methanol. Egypt has many natural advantages that support a world class green methanol project including access to low-cost renewables and proximity to the Suez Canal and maritime customers. Signing of the Framework Agreement today marks another important milestone in realising our ambition to be a leading producer of green methanol. We thank the Government of Egypt and our Egyptian Sponsors for their continued support and look forward to working with them to make our project a success we can all be proud of.”
SCZone Chairman Waleid Gamal El-Dien added: “today’s FWA is the 10th framework agreement within Memorandums of Understanding signed by SCZone which aims to transform to a green economy and its various industrial applications, making use of its capabilities related to the integration of its ports with affiliated industrial zones.”
The project was initiated in March 2022 with the signing of a Memorandum of Understanding and the FWA moves it to a deeper level of collaboration with more advanced technical and commercial feasibility studies towards the shared objective. Following completion of these studies, the parties will proceed towards final investment agreements for the project.
