Major Corporations Target E-Methanol Bunkering and Export Hub in the UAE

A collaboration agreement has been reached between AD Ports Group, Masdar, Advario, and CMA CGM Group to evaluate the potential for establishing an e-methanol bunkering and export facility at Khalifa Port and Khalifa Economic Zones Abu Dhabi (KEZAD) in the UAE.

Illustration; Archive. Courtesy of CMA CGM

This initiative aims to create essential infrastructure needed to close the supply value chain and connect e-methanol production with companies like CMA CGM, thereby supporting the acceleration of decarbonization efforts within the global shipping sector.

The collaboration aligns with the ‘Abu Dhabi Low Carbon Hydrogen Policy’ and the UAE’s ‘National Hydrogen Strategy’, which seeks to increase local hydrogen production to 1.4 million tonnes annually by 2031 and 15 million tonnes by 2050. Additionally, it contributes to the country’s commitment to achieving ‘Net Zero by 2050’, focusing on reducing emissions in challenging sectors by that year.

Saif Al Mazrouei, CEO of the Ports Cluster at AD Ports Group, stated: “This agreement is a significant step in our mission to foster a more sustainable and ecologically responsible maritime industry. Establishing an e-methanol bunkering and export facility at Khalifa Port will support shipping industry growth, aid in lowering carbon emissions, and promote clean energy solutions. We are excited about this partnership with esteemed companies, and we believe we can make a substantial difference for both the environment and the economy.”

Faye Al Hersh, Head of Green Hydrogen Business Development in the UAE for Masdar, noted: “Green hydrogen and its derivatives, like e-methanol, play a critical role in decarbonizing difficult-to-reform sectors such as shipping, which contributes to the global transition toward net zero. Given that over 80% of worldwide trade is conducted by sea, forming strategic alliances is vital for developing resilient green hydrogen supply chains and ensuring a sustainable maritime industry. E-methanol could transform shipping by presenting a feasible way to significantly reduce emissions.”

Bas Verkooijen, CEO of Advario, expressed: “We are delighted to collaborate with Masdar, AD Ports Group, and CMA CGM to explore innovative solutions that will promote long-term sustainability in the maritime industry. This joint effort not only enhances our role in the UAE’s chemical and new energy industries but also reaffirms our dedication to partnering with clients and collaborators in expediting the decarbonization of essential sectors.”

Christine Cabau Woehrel, Executive Vice President for Assets and Operations at CMA CGM Group, remarked: “At CMA CGM, we are rapidly advancing the decarbonization of shipping through investment in low-carbon technologies. Our fleet, which will include over 153 vessels capable of utilizing low-carbon energies and synthetic fuels like e-methanol by 2029, underscores our commitment. This collaboration is crucial for developing the necessary infrastructure to increase the availability of sustainable fuels, vital for the energy transition in our sector.”

This partnership builds on a memorandum of understanding (MoU) signed in 2023 between AD Ports Group and Masdar to investigate the formation of a green hydrogen hub within KEZAD. Furthermore, in 2024, Masdar engaged in a strategic supply partnership with CMA CGM to consider the ongoing provision of green maritime fuels for their fleet.

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