4 October 2023 (Lloyd's List) - C2X, the company established by Maersk’s parent company to boost the development of methanol, has signed a framework agreement with the government of Egypt, in a step it says will accelerate large-scale green methanol production.

The company said the framework agreement was “deepening the partnership and joint efforts for C2X to establish the project”, which is located close to the Suez Canal, in collaboration with the General Authority for Suez Canal Economic Zone, the Egyptian New and Renewable Energy Authority, the Egyptian Electricity Transmission Co, and the Sovereign Fund of Egypt for Investment and Development.

“This is an important step forward for the global transition to green methanol,” said C2X chief executive Brian Davis.

“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.”

The agreement will include the establishment of projects for generating green energy from wind and solar sources.

The project was initiated in March 2022 with the signing of a memorandum of understanding and the agreement moves it to a “deeper level of collaboration” with more advanced technical and commercial feasibility studies C2x said.

Following completion of these studies, the parties will proceed towards final investment agreements for the project.

C2X is majority owned by AP Moller Holdings, the parent company of Maersk, which owns a 20% stake.

The company is focusing on methanol production in Spain and Egypt and expects to reach a capacity of 3m tonnes per year by 2030.