Egypt and C2X, a subsidiary of the global container shipping company Maersk, signed a new framework agreement worth up to $3 billion to produce green fuel and its derivatives in the Suez Canal Economic Zone, according to a statement issued by the Egyptian Prime Minister’s Office today.

The General Authority for the Suez Canal Economic Zone, the Sovereign Fund of Egypt, the New and Renewable Energy Development and Utilization Authority, the Egyptian Electricity Transmission and Distribution Company to invest $3 billion on the phase of green fuel production project for ship bunkering supplies and to reduce carbon emissions to zero signed the agreement.

Walid Gamal El-Din, Chairman of the General Authority for the Suez Canal Economic Zone, said in the statement that the first phase of the project aims to produce 300,000 tonnes annually of green methanol and to reach one million tonnes annually with the completion of the final stages of the project.

Egyptian Prime Minister Mostafa Madbouly, who attended the signing ceremony, said that his country continues to work on “expanding the clean energy field to produce green hydrogen and its derivatives, as it is working to implement projects to produce and use green methanol and green ammonia to serve the ship bunkering sector in particular.” According to the statement.