2023-12-03T14:44:05+00:00
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On Sunday, the Egyptian Suez Canal Authority Economic Zone signed a memorandum of understanding with a Norwegian company worth $1.1 billion to supply “green fuel” to ships passing through it.
The Economic Zone stated in a statement reported by Al Hurra website that it signed the memorandum with the Norwegian company SCATEC EA, on the sidelines of the United Nations Climate Change Conference (COP28) in Dubai.
The agreement stipulates that the volume of production will reach “100,000 tons of green methanol annually by 2027, and the capacity of the electrolyzer will reach 190 megawatts, relying on 317 megawatts of wind energy and 140 megawatts of solar energy.”
The Egyptian government announced earlier this year that it was working on preparing a national strategy for green hydrogen in the country, in partnership with the European Bank, and it would include working to make Egypt “responsible for 8% of the world’s production of green hydrogen.”
According to official statistics, Cairo has already signed several agreements between Egypt’s sovereign fund and companies to produce green hydrogen, with investments amounting to about $83 billion, on the sidelines of the climate conference that Egypt hosted in Sharm El-Sheikh last year.
According to the Information and Decision Support Centre, affiliated with the Prime Minister, it is expected to add to the gross domestic product “between 10 and 18 billion dollars, as a result of doubling the hydrogen economy by approximately 7 times by 2050.”
Also, 100,000 new jobs could be created if local capacities in hydrogen industries are increased.
Green hydrogen is a zero-carbon fuel, produced by electrolysis of water, using renewable energy sources such as wind and sun to separate oxygen from hydrogen in water.
The International Energy Agency indicates that green hydrogen will save 830 million tons of carbon dioxide that is emitted annually when producing this gas using fossil fuels.
What are the benefits of using green methanol as a fuel in the shipping industry?
Time.news Editor: Welcome, everyone, to our exclusive interview on the latest developments in renewable energy and shipping. Today, we’re diving deep into a significant agreement recently signed between the Suez Canal Authority Economic Zone and a Norwegian company, SCATEC EA. Joining us is Dr. Nora Khalil, a leading expert in sustainable fuels and maritime shipping. Dr. Khalil, thank you for being here.
Dr. Nora Khalil: Thank you for having me. I’m excited to discuss this important development!
Editor: Let’s start with the basics. Can you explain what green methanol is and why it’s considered an important fuel for ships?
Dr. Khalil: Absolutely! Green methanol is a renewable fuel produced from biomass or through the electrolysis of water powered by renewable energy sources. It’s considered a game-changer for shipping because it can significantly reduce carbon emissions compared to traditional marine fuels. Shipping is one of the largest contributors to global greenhouse gas emissions, so transitioning to green fuels like methanol is crucial for achieving climate targets.
Editor: And this recent memorandum of understanding is a major step toward that transition, isn’t it? With an investment of $1.1 billion, what do you think this means for the shipping industry and global emissions?
Dr. Khalil: Yes, it’s monumental! The commitment to produce 100,000 tons of green methanol annually by 2027 represents a strong signal that the shipping industry is serious about embracing sustainable practices. This partnership could set a precedent for other ports and maritime regions to follow suit, potentially leading to a significant reduction in global shipping emissions.
Editor: The agreement was signed during the COP28 conference in Dubai. How important is it for discussions on climate change and sustainable practices to be linked with such real-world applications, like this one?
Dr. Khalil: It’s incredibly important! High-level discussions at climate conferences often need tangible outcomes, and agreements like this one provide a clear example of how nations can turn commitments into actionable projects. This linkage showcases that sustainability can align with economic initiatives and advances in technology, encouraging more stakeholders to get involved.
Editor: The memo mentions that the electrolyzer capacity will reach 190 megawatts, relying on 317 megawatts of green energy. Can you elaborate on the significance of these numbers?
Dr. Khalil: Certainly! The electrolyzer’s capacity indicates the scale at which they can produce green methanol. 190 megawatts is a substantial figure that suggests the potential for large-scale production, thus making green methanol more widely available for maritime use. Additionally, having a reliable source of 317 megawatts of green energy is crucial because it ensures that the production process remains sustainable and efficient.
Editor: What challenges do you foresee in the implementation of this agreement, considering the scale and necessary infrastructure?
Dr. Khalil: One of the main challenges will be ensuring that the infrastructure is in place to support both the production and distribution of green methanol. This includes building adequate facilities, integrating with existing supply chains, and ensuring that the necessary regulatory frameworks are in place to facilitate this transition. Moreover, fluctuations in renewable energy availability can also pose challenges in maintaining production levels.
Editor: If you had to give one piece of advice to policymakers looking to replicate this kind of success in their regions, what would it be?
Dr. Khalil: Collaboration is key. Engaging with industry players, research institutions, and local communities to create coherent policies that support renewable initiatives can facilitate smoother transitions. Additionally, providing incentives for green fuel production and consumption can encourage investment and innovation.
Editor: Fascinating insights, Dr. Khalil. As we wrap up, what excites you most about the future of green fuels in maritime transport?
Dr. Khalil: I’m excited about the potential for innovation and how collaboration in this field can lead to transformative changes. We are at a pivotal moment where technology is evolving rapidly, and there’s a collective drive towards sustainability. If projects like this continue to scale, we could see a drastically different landscape in just a few years.
Editor: Thank you so much, Dr. Khalil, for sharing your expertise with us today. It’s clear that this agreement is just the beginning of a larger shift towards greener maritime practices. We appreciate your insights!
Dr. Khalil: Thank you for having me. It was a pleasure to discuss these crucial topics!