Qatar’s Green Sky Capital secures financing for USD 200 mn SAF plant

Doha-headquartered Green Sky Capital has secured financing from a banking consortium for its USD 200 mn sustainable aviation fuel (SAF) facility in Ain Sokhna, according to a statement (pdf). The project — named SAFFly Egypt — is backed by Qatar’s Al Mana Holding and Saudi Vision Invest.

Our take: Regional tensions and the closure of Hormuz could accelerate the transition to SAF. With crude above USD 100 and jet fuel prices more than doubled in some markets, the premium European airlines used to balk is looking like less of a hurdle. SAFFly may have been a smart project before the war on Iran, but now it could be seen as a strategic asset. A biofuel facility on the Red Sea, fed by Egyptian used cooking oil and loaded onto Europe-bound vessels without touching the Gulf, is exactly what European carriers need right now. Shell's pre-crisis offtake of 100% of output looks less like a sustainability bet and more like supply-security planning that has aged well.

In numbers: The facility is set to begin commercial operations in late 2027, a source with knowledge of the agreement tell EnterpriseAM, and aims to produce 200k tons of biofuels annually, including SAF, renewable diesel, and industrial bio-products. Shell Aviation has inked a long-term agreement to purchase the full production quota of the facility.

The government is already building a supply chain that will feed used cooking oil to the project's SAF production. Last year, the state greenlit a network of 30 collection plants across 24 governorates which can recycle 1 mn tons of Egypt’s total 2.5 mn tons of used cooking oil.

Who’s writing the checks? The total investment value has been covered by USD 140 mn in debt and the rest with equity from the sponsors, our source tells us. Arab Energy Fund was the largest lender and a co-mandated lead arranger. The Emerging Africa and Asia Infrastructure Fund — managed by Ninety One — served as global mandated lead arranger and coordinating lender, also investing via its Emerging Markets Debt Fund and bringing in QNB Egypt as lender and onshore agent.

REMEMBER- We were expecting USD 10 bn in Qatari capital before the end of 2026, and this facility is a part of the investment pie.

BACKGROUND- We have another SAF project in the works. The Oil Ministry launched the Sustainable Aviation Fuel Production company in 2024 to develop a USD 530 mn SAF complex in Alexandria, targeting output of 120k tons.

ADVISORS- Rothschild & Co acted as financial advisor to Green Sky Capital on the transaction, with White & Case advising the borrower and Clifford Chance the lenders.