The MoU is the result of "fruitful cooperation and discussions" with ABS "to benefit from its long experience in the field of environmental sustainability," Osama Rabie, the SCA chairman, said.

A statement issued by the SCA on Tuesday quoted Rabie as saying that the signing of the MoU demonstrates the SCA's environment-friendly strategy that aims to declare the Suez Canal a Green Canal.

The authority is keen to promote cooperation with all organisations in the field of maritime transport and environmental sustainability and de-carbonisation, he added.

The SCA chairman said that the Suez Canal’s green transition had begun before the signing of Tuesday’s memorandum. He was referring to the SCA’s current reliance on clean energy to both operate the pilotage stations along the canal and respond to oil spills.

He also asserted that the recent development project of the canal's navigational course is a key factor in achieving environmental sustainability as it raised the canal's efficiency and reduced carbon emissions.

The authority had previously stated that work was underway to convert the SCA's navy so that it runs on natural gas. The SCA also said that it encourages its customers to utilise environmentally friendly fuels through a package of incentives that includes providing ships with Liquid Natural Gas (LNG) and applying environmental safety standards.

The Egyptian government has been reviewing various offers submitted by international companies to establish green hydrogen projects in the Suez Canal Economic Zone (SCZone). These offers come at a time when the country is seeking to localise the production of the clean-burning fuel.

Turning the 72-kilometre-long Suez Canal — the world’s longest man-made canal without locks — into a “green route” aligns with the country’s ambitious plans to become a transit route for clean energy.