Maersk's Ethanol Experiment Threatens Egypt's Green Hydrogen Pipeline
Maersk's trial of a 50-50 ethanol-methanol fuel blend poses risks to Egypt’s multi-billion-dollar green hydrogen initiatives. The shift towards bioethanol aligns with U.S. production capabilities but undermines Egypt's strategic plans for green fuel exports, which rely on green hydrogen and methanol.
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Maersk has successfully trialed a blend of 50% ethanol and 50% methanol, aiming for a 100% ethanol solution, shifting away from reliance on green methanol sourced from China. This pivot jeopardizes Egypt's multi-billion-dollar green hydrogen and methanol pipeline projects, which were designed under the assumption of a higher carbon price.
Egypt's ambitions for a National Low-Carbon Hydrogen Strategy are hindered by its limited cultivable land and water scarcity, making large-scale bioethanol production unrealistic. The Egyptian Bioethanol Company's planned USD 135 million facility is insufficient to meet maritime fuel demands.
However, Egypt can adapt by positioning itself as a regional ethanol processing hub, leveraging its location near the Suez Canal. Despite ethanol trials, methanol remains the predominant choice for maritime decarbonization, with 38 methanol-powered vessels currently in operation.
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