Egypt and Maersk’s C2X signed a new framework agreement for the production of green methanol in Egypt.

In the presence of the Egyptian Prime Minister, C2X has sealed the deal with its Egyptian sponsors and partners. The goal of the agreement is to enable and accelerate large scale production of green methanol in Egypt.

C2X is aiming to build, own, and operate assets to produce green methanol at scale with Danish major A.P. Moller Holding as majority owner and A.P. Moller-Maersk as minority owner. The efforts will include the establishment of projects for generating green energy from wind and solar sources.

Known as C2X, the new venture is an independent company aimed to build, own, and operate assets to produce green methanol at scale.

The venture C2X is pursuing advantaged and scalable green methanol projects located near the Suez Canal in Egypt and the port of Huelva in Spain, as well as other opportunities across several geographies.

Brian Davis, chief executive of C2X stated: “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 realizing our ambition to be a leading producer of green methanol.”

Waleid Gamal El-Dien, SCZONE’s chairman, noted: “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 MoU 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.