Egypt and Qatar have strengthened their industrial and energy cooperation following the signing of a $200 million investment agreement between the Egyptian government and Al Mana Holding, a Qatar-based conglomerate, to develop a Sustainable Aviation Fuel plant in the Suez Canal Economic Zone. The project marks Qatar’s first industrial investment in this strategic area and reinforces Egypt’s position within the global supply chain for cleaner aviation fuels.

The plant will be built in the Ain Sokhna Integrated Zone on a plot of approximately 100,000 square meters and will have an estimated production capacity of 200,000 tons per year. The facility will use refined used cooking oil as a raw material to produce SAF, along with byproducts such as biopropane and bionaphtha, aligning with circular economy models and industrial decarbonization.

Al Mana Holding secured a long-term supply agreement with Shell for the entire production, providing commercial visibility and financial stability to the project. The first deliveries of sustainable aviation fuel are expected to begin toward the end of 2027, against a backdrop of rapidly growing global demand for SAF from airlines and other stakeholders in the aviation sector.

The project is part of Egypt’s national plans to support the development of the aviation sector under environmentally sustainable standards. Egyptian Prime Minister Mostafa Madbouly emphasized that this investment strengthens the Suez Canal Economic Zone’s capacity to adapt to the global transition to renewable energy sources, especially in a sector with high growth potential such as aviation.

The signing of the agreement took place during the Egypt-Qatar Business Forum held in Cairo and reflects the strengthening of bilateral relations, as well as the interest of both countries in transforming political cooperation into productive investment and long-term trade. The Suez Canal Zone administration emphasized that environmental sustainability is one of the strategic pillars of its industrial development.

Waleid Gamal El-Dein, Chairman of SCZONE, indicated that the project will allow for an estimated reduction of between 50% and 80% in emissions compared to conventional fuels and that the purchase agreement with Shell will boost exports from the zone, supporting Egypt’s macroeconomic objectives of increasing exports and reducing energy imports.

For his part, Abdulaziz Al-Mana, CEO of Al Mana Holding and Chairman of Green Sky Capital, noted that the company values Egypt’s investment environment and the institutional support received for the project’s implementation, positioning the Suez Canal Economic Zone as an emerging hub for the production of sustainable fuels geared toward the international market.

Source and Credits to Arab News

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