Egypt has signed a memorandum of understanding (MoU) with the Norwegian company Scatec ASA to supply ships with green fuel in East Port Said, with investments worth around $1.1 billion.

This was announced on Sunday by the Suez Canal Economic Zone (SCZONE) on the sidelines of its participation in COP28.

The MoU was signed by Walid Gamal El-Din, the head of the authority, Alaa Hegazy, the head of the technical office of the minister of petroleum, and Terje Pilskog, the Scatec ASA’s CEO. 

Gamal El-Din emphasized that the MoU aims to optimize the advantages of integrated industrial zones featuring world-class infrastructure. 

The economic zone offers investment incentives and a supportive working environment to enhance its benefits.

The investment cost is approximately $1.1 billion including investments in clean energy generation, with a production capacity of up to 100,000 tons of green methanol annually by 2027.

Gamal El-Din affirmed that providing ships with green fuel is not only a goal but a global imperative, given that maritime shipping accounts for 10 percent of worldwide carbon emissions. Using green fuel in maritime transport will significantly reduce carbon emissions.

He also emphasized the importance of the East Port Said region as the destination for this project due to its location north of the Suez Canal, its integration with the east and west ports of Port Said, and its proximity to ship waiting areas. 

In July 2023, Gamal El-Din announced a significant achievement as the SCZone efficiently supplied 100 tons of diesel to a container ship within one hour. 

This service enhances the port’s global classification and attracts numerous shipping lines, showcasing the zone’s success, he added.

Scatec is a leading renewable energy solutions provider, accelerating access to reliable and affordable clean energy emerging markets.

Commencing with its initial projects in the region at COP27 in November 2022, inaugurated by President Abdel-Fattah El-Sisi, Scatec ASA is undertaking a significant initiative to establish a major green hydrogen plant with a capacity to produce 100 MW in Egypt's Ain Sokhna on the Red Sea.

Egypt has signed several MoUs with international corporations for investments in green hydrogen as part of the country's ambitious plan to become a regional green energy hub and reduce carbon emissions.

As part of Egypt's efforts to stimulate green investments, the cabinet approved in August the creation of the National Council for Green Hydrogen.

The country aims in the coming years to reduce carbon emissions and promote the use of renewable and alternative energy sources, including green hydrogen, as part of its National Climate Change Strategy 2050.