Oil Ministry launches new company to pursue green aviation fuel ambitions: The Oil Ministry launched the Sustainable Aviation Fuel Production Company, which will invest USD 530 mn to develop production facilities and integrate the facility with other petroleum companies in Alexandria governorate, 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, after production kicks off “within the next few years.”

We knew this 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 us 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.

FYI: If you don’t know your blue hydrogen from your green hydrogen or your biodiesel from your sustainable aviation fuel, you can check out our explainer on green fuels.

OUR TRADITIONAL HYDROCARBON SECTOR IS ALSO SET FOR A BOOST-

Dana Gas to embark on USD 100 mn drilling project once gov’t dues received: Emirati oil and gas giant Dana Gas is waiting for USD 24 mn out of a total USD 59 mn of outstanding dues owed by the government to be paid before it launches a USD 100 mn project to develop production, the company said in a statement (pdf) accompanying its latest earnings release. The investment includes the drilling of 11 new wells and is expected to add 80 bn cbf of gas reserves, according to the company.

The project could mean big savings for the state: The company claims the increased gas supplies from the project would save “over USD 1 bn for Egypt’s economy, reducing reliance on imported LNG and mazut for power generation.”

PLUS- Dragon Oil and the Oil Ministry look to AI to boost efficiency and sustainability: The UAE’s Dragon Oil and the Oil Ministry inked a cooperation MoU to use AI in the company’s operations in the Gulf of Suez, according to a ministry statement. The agreement aims to enhance production efficiency, data analysis, and reservoir management in its offshore fields.

Tags: