Industry giants eye e-methanol bunkering and export facility in UAE

June 5, 2025, by Aida Čučuk

The UAE-based terminal operator AD Ports Group, Abu Dhabi Future Energy Company (Masdar), Dutch-based provider of tank storage and infrastructure solutions Advario, and French shipping and logistics company CMA CGM Group have signed a collaboration agreement to explore the feasibility of developing an e-methanol bunkering and export facility at Khalifa Port and Khalifa Economic Zones Abu Dhabi – KEZAD, UAE.

Illustration; Archive. Courtesy of CMA CGM

As disclosed, the project is expected to provide critical infrastructure to complete the supply value chain and bridge commercial e-methanol production with off-takers, such as CMA CGM, in support of accelerating the decarbonization of the global shipping industry.

The agreement reportedly aligns with the ‘Abu Dhabi Low Carbon Hydrogen Policy’ and the UAE’s ‘National Hydrogen Strategy,’ which targets the scaling up of local hydrogen production to 1.4 million tonnes per annum by 2031 and 15 million tons per annum by 2050. Furthermore, it is said to correspond with the nation’s ‘Net Zero by 2050’ strategic initiative, which focuses on decarbonizing hard-to-abate sectors by 2050.

Saif Al Mazrouei, CEO- Ports Cluster, AD Ports Group, commented: “The signing of this agreement marks an important milestone in our journey towards creating a more sustainable and environmentally responsible maritime industry. The development of an e-methanol bunkering and export facility in Khalifa Port will not only support the growth of the shipping industry, but also contribute to the reduction of carbon emissions and the promotion of clean energy sources. We are proud of this partnership with distinguished corporations, and are confident to make a positive impact on the environment and the economy.”

Faye Al Hersh, Head of Green Hydrogen Business Development (UAE), Masdar, remarked: “Green hydrogen and its derivatives, such as e-methanol, are pivotal in decarbonising hard-to-abate sectors like shipping, helping drive the global shift toward net zero. With over 80 percent of global trade transported by sea, fostering strategic partnerships is essential to establishing robust green hydrogen value chains and ensuring a more sustainable maritime industry. E-methanol has the potential to revolutionise the shipping sector by offering a viable pathway to significantly cut emissions.”

Bas Verkooijen, Advario’s CEO, stated: “We are pleased to be partnering with Masdar, AD Ports Group, and CMA CGM to assess the feasibility of developing innovative solutions that will drive long-term, sustainable progress for the maritime industry. This partnership not only strengthens our position in the UAE’s chemicals and new energy sectors, but it also underlines our commitment to working alongside our customers and partners to accelerate the decarbonisation of critical industries.”

Christine Cabau Woehrel, Executive Vice President for Assets and Operations, CMA CGM Group, said: “At CMA CGM, we are accelerating the decarbonation of shipping by investing in low-carbon solutions, with a fleet of more than 153 vessels capable of using low-carbon energies and synthetic fuels such as e-methanol operational by 2029. This collaboration marks a key milestone in developing the necessary infrastructure to scale up sustainable fuels, which are strategic for our industry’s energy transition.”

To note, this collaboration agreement follows a memorandum of understanding (MoU) signed in 2023 between AD Ports Group and Masdar to explore the development of a green hydrogen hub within KEZAD. In 2024, Masdar also signed a strategic supply partnership with CMA CGM to assess the long-term provision of green maritime fuels for the company’s fleet.