Investors in Egypt from both the public and private sectors are exploring a joint venture to produce sustainable aviation fuel, with investments estimated at $380 million, according to a government official who spoke to “Al-Sharq” on condition of anonymity.
The proposed project aims to produce 120,000 tons of sustainable aviation fuel annually.
The initiative involves major participants including the state-owned Egyptian Petrochemicals Holding Company, Alexandria National Refining & Petrochemicals Company (ANRPC), and a private company operating in Egypt.
Sustainable aviation fuel, an alternative to fossil-based kerosene used in jet engines, is derived from various sources ranging from waste oils and fats to sugar crops, certain trees, and grasses.
One of the key drivers for the production of sustainable aviation fuel is its potential to immediately reduce carbon dioxide emissions, as it is manufactured without extracting more fossil fuels.
This eco-friendly jet fuel can be blended with conventional aviation fuel without significant modifications to aircraft engines.
The financial study for the project is expected to be completed by April next year, including plans to secure $280 million in foreign loans. The project, to be situated on land owned by ANRPC, is slated to commence by the end of 2026.
The Egyptian Petrochemicals Holding Company is set to own 70% of the project’s capital, with ANRPC acquiring 15%, and the private company holding the remaining 15%.
In December 2023, the UAE’s COP28 reached a climate agreement to lower reliance on fossil fuels, a major factor in global warming.
This was the first global climate accord to directly address the need to decrease fossil fuel usage.
The agreement was quickly approved in a crowded venue. However, representatives of small island nations, who were not present at the time of the decision, expressed reservations about certain aspects of the agreement but chose not to challenge its overall validity.
