Qatari Green Sky Capital finances major sustainable aviation fuel facility in Egypt

Qatari-based firm Green Sky Capital has signed a major financing agreement for a pioneering sustainable aviation fuel (SAF) production facility in Ain Sokhna, located within Egypt’s Suez Canal Economic Zone (SCZone), Al Youm Al Sabea reported on May 6. 

The $500mn project marks a significant step in scaling SAF production across the region. Spanning 100,000 square metres, the facility will produce up to 200,000 tonnes annually of biofuels, including SAF, hydrotreated vegetable oil, biopropane and bionaphtha. Operations are expected to commence by the end of 2027.

The facility is expected to play a main role in decarbonising the aviation sector, aligning with international targets to achieve net-zero carbon emissions by 2050. The project will be supported by leading regional sponsors, including the Qatari Al Manna Holding and Vision Invest.

The Arab Energy Fund acted as global structuring bank and joint lead arranger, while also serving as the project’s largest lender. Additional coordination was provided by the Emerging Africa & Asia Infrastructure Fund. Ninty One (LSE:N91) will contribute through the emerging markets debt platform, facilitating participation from Qatar National Bank-QNB Egypt (EGX:QNBK). 

The project benefits from a long-term offtake agreement with global energy major Shell (NYSE:SHEL), alongside technology and engineering partnerships with Axens and COOEC (SSE:.600583)