The European Bank for Reconstruction and Development (EBRD) is considering financing of up to $105 million for a proposed sustainable aviation fuel (SAF) facility in northeastern Morocco, planned to produce 200,000 tonnes of fuel annually from waste-derived feedstocks.
The proposed senior secured loan would support the construction and commissioning of the facility at Nador West Med Port. The project, being developed by Green Sky Capital Holdings Ltd (GSC), has an estimated total cost of $239 million, according to information published by the lender.
The financing remains under consideration, with the EBRD’s project notice indicating an exploratory status and targeting approval by 18 November 2026. The proposed loan is therefore not yet a confirmed financing commitment.
The contemplated $105 million loan comprises two components: an $85 million committed tranche and a further $20 million uncommitted tranche.
Up to $20 million of the proposed financing is expected to come from the Green Climate Fund (GCF) under its High Impact Programme for the Corporate Sector. The project is also expected to benefit from first-loss risk coverage provided by the European Union under the EFSD+ Guarantee Agreement HI-BAR.
These arrangements are intended to support the project’s financing structure and help manage investment risk. However, the EBRD’s exploratory status means the financing terms and approval remain subject to further review.
With the project estimated to cost $239 million, the proposed EBRD loan would represent a substantial component of the planned investment. The supplied information does not detail the full financing mix or confirm how the remaining project costs will be funded.
Morocco SAF Project Targets 200,000 Tonnes of Annual Production
The proposed facility will be located at Nador West Med Port in northeastern Morocco. With planned annual output of 200,000 tonnes, it is expected to become one of the first commercial-scale SAF production facilities in Morocco and North Africa.
The project is intended to support the development of Morocco’s emerging green fuels industry while helping address aviation’s emissions-reduction challenges through the production of alternative aviation fuel.
The facility’s total estimated cost is $239 million. The project notice does not specify a construction start date or a target commissioning date.
The plant will use hydroprocessed esters and fatty acids (HEFA) technology licensed by Axens. The process will draw on domestic and imported waste-oil supply networks.
HEFA is an established pathway for producing renewable fuels from suitable lipid-based feedstocks, including used cooking oil and certain waste fats. Feedstock availability, quality, sourcing costs and sustainability verification will be important factors in determining the plant’s operating economics.
Alongside SAF, the facility is expected to produce renewable diesel, bionaphtha and biopropane. These additional products could diversify the project’s output and provide routes to different fuel and chemical markets, depending on product specifications and customer demand.
Long-Term Offtake Agreement Provides a Commercial Foundation
The project already has a long-term offtake agreement with a private-sector buyer, according to the supplied project information. The buyer has not been identified in the material provided.
A long-term offtake agreement can help support revenue visibility and provide greater certainty for project financing. However, the commercial strength of this arrangement cannot be fully assessed without information on contracted volumes, pricing terms, duration and any conditions attached to the agreement.
The project is being developed by Green Sky Capital Holdings, a clean energy company focused on developing, financing and operating SAF projects in emerging markets. GSC is backed by Green Sky Capital Management, Al Mana Holding and Vision Invest.
Bioenergy Business Analysis
The proposed Moroccan SAF facility represents a potential step towards expanding commercial-scale sustainable aviation fuel production in North Africa. Its significance rests on the combination of planned production capacity, a waste-oil-based technology pathway and a financing structure involving development finance and climate-focused funding.
The immediate milestone is financing approval, not production. The EBRD is still considering the proposed loan, and the project’s construction and commissioning remain ahead. Its ability to reach operation will depend on securing the necessary funding, completing development and establishing a dependable supply of suitable feedstocks.
uncement does not provide a breakdown of expected output across these fuels or the revenue contribution anticipated from each product.
For the wider SAF industry, the project illustrates the role that development finance and risk-sharing mechanisms may play in advancing capital-intensive renewable fuel facilities in emerging markets. Its progress will be worth monitoring as Morocco seeks to develop its green fuels industry.
The next key indicators are the EBRD’s financing decision, confirmation of the full capital structure, further details on feedstock sourcing and disclosure of the project’s construction and commissioning timetable.
