Egypt gets the ball rolling on USD 530 mn sustainable aviation fuel project

Egypt launches new company to pursue green aviation fuel ambitions: Egypt’s Oil Ministry launched the Sustainable Aviation Fuel Production Company (ESAF), which will invest USD 530 mn to develop production facilities and integrate the facility with other petroleum companies in Alexandria, according to a ministry statement. The project aims to produce 120k tons of sustainable aviation fuel (SAF) and reduce carbon emissions by 400k tons a year once production kicks off “within the next few years.”

We knew this was coming: The ministry has been working on a plan that will see state-owned firm Egyptian Petrochemicals Holding Company (ECHEM) producing the country’s first SAFs, which a government source told EnterpriseAM Egypt should kick off in 2025 once the necessary studies are completed.

The move dovetails with Honeywell wrapping up its SAF feasibility study: US multinational conglomerate Honeywell has finished its feasibility study with the European Bank of Reconstruction and Development for SAF production in Egypt, according to a separate statement from the ministry.

SOUND SMART- SAF is a biofuel used to power aircraft that is made from non-petroleum feedstock such as waste cooking oil, animal fats, and non-food crops. It can reduce carbon emissions by up to 80% compared to traditional jet fuel. Aviation was responsible for 2% of energy-related carbon emissions in 2022, the International Energy Agency’s most recent figures show.