Shell has signed a long-term agreement to purchase 100% of the sustainable aviation fuel output from Green Sky Capital, providing the commercial certainty needed to construct Egypt’s first commercial-scale SAF facility in what represents a significant boost for the country’s green energy transition.
The plant, which is being developed by Green Sky Capital in the Suez Canal Economic Zone, is expected to commence operations by the end of 2027. It is designed to produce up to 145,000 tons per year of SAF, along with bionaphtha and biopropane, helping to reduce carbon dioxide equivalent emissions by up to 500,000 tons per year.
“By securing 100% of the plant’s output, Shell is strengthening its global supply network for low-carbon fuels and helping aviation meet decarbonization targets,” said Geoff Mansfield, Vice President of Low Carbon Fuels at Shell Trading.
The deal provides crucial offtake certainty that will enable Green Sky Capital to move forward with construction financing and project execution. Shell’s commitment to purchase the entire output demonstrates strong confidence in Egypt’s emerging SAF sector and the commercial viability of renewable fuel production in the region.
Shell is a major player in the renewable fuels market, delivering SAF to more than 80 locations across 18 countries as of July 2025. In 2024, the company became one of the world’s largest traders and suppliers of SAF, accounting for nearly 20% of total sales in Europe and North America.
Green Sky Capital is a SAF platform focused on developing renewable fuel projects across the Middle East and North Africa, with the Egyptian facility serving as its inaugural project. The agreement represents a significant milestone for both companies and positions Egypt as an emerging hub for sustainable aviation fuel production in the MENA region.
Source: egyptoil-gas.com