Shipping group A.P. Moller-Maersk plans to finalise a deal with Egyptian government for a green energy and clean fuel production and distribution project at the COP27 United Nations Climate Change Conference due next November.
Maersk’s chief group representative Hany El Nady said Tuesday evening in a televised interview that the company would sign the final contracts for the $15 billion project at COP27, which will be held in the Egyptian Red Sea resort of Sharm El-Sheikh.
The anticipated project will see the production of 200,000 tons of clean fuel during the first phase, which will be completed by 2026, El Nady further said. Maersk has already begun feasibility studies for the project, he added.
The second and third phases will raise production to 1 million tons and 3 million tons by 2028 and 2030, respectively, the Maersk’s official noted.
Earlier this week, Maersk chief executive Soren Skou held talks with Egyptian President Abdel Fattah al-Sisi on the project, which will see the company cooperate with the Egyptian government to set up a national network to produce and distribute green energy and fuel for ships.
Egypt is aiming to position itself as a regional hub for green energy, with the government making moves to capitalise on investment momentum ahead of COP27. To date, major global companies have signed $18 billion worth of preliminary agreements to establish green ammonia and hydrogen projects in Ain Sokhna, with final agreements expected to be signed at the global climate summit.
