Shell Trading Rotterdam B.V., a subsidiary of Shell plc, has entered into a long-term products offtake agreement with Green Sky Manara LLC for output from a planned renewable fuels facility at Port Nador in Morocco.
Under the agreement, Shell will hold exclusive offtake rights for approximately 150,000 tonnes per year (tpy) of sustainable aviation fuel (SAF) or an equivalent volume of hydrogenated vegetable oil (HVO). The arrangement also covers bionaphtha and biopropane produced at the facility.
The Port Nador project is scheduled to start operations in October 2028. The agreement will add another planned production source to Shell’s growing portfolio of sustainable aviation fuel supply arrangements across international markets.
Shell to Secure SAF and Renewable Fuel Supply from Morocco
The agreement gives Shell access to multiple renewable fuel products from the planned Moroccan facility.
The principal offtake volume is approximately 150,000 tonnes annually of SAF or an equivalent quantity of HVO. The arrangement also includes bionaphtha and biopropane, extending the product portfolio covered by the agreement beyond aviation fuel.
HVO is a renewable diesel fuel produced through the hydrotreatment of suitable renewable feedstocks, while SAF is designed for use in aviation and can help reduce lifecycle greenhouse gas emissions compared with conventional fossil-based jet fuel, depending on its production pathway and feedstock.
The agreement provides Green Sky Manara with a long-term commercial arrangement for marketing its planned output, while giving Shell access to additional renewable fuel volumes for its trading and supply network.
Shell Executive Vice-President of Products Trading Richard Jory said the agreement supports the company’s strategy of helping customers access lower-carbon fuels while developing resilient and commercially viable supply chains.
Morocco Agreement Adds to Shell’s International SAF Portfolio
The Port Nador arrangement follows an earlier long-term agreement associated with a planned hydroprocessed esters and fatty acids (HEFA) facility being developed by Green Sky Capital in Egypt.
Shell said its wider SAF supply portfolio also includes offtake arrangements linked to facilities in Pakistan, Malaysia, Thailand and the United States.
These agreements form part of the company’s strategy to connect feedstock suppliers, fuel producers, infrastructure operators and aviation customers through long-term commercial arrangements, trading capabilities and logistics networks.
Shell currently supplies SAF at more than 80 airports across 18 countries, according to the company.
SAF Supply Agreements Target Growing Aviation Demand
The latest agreement comes as airlines and fuel suppliers seek to expand access to sustainable aviation fuel to address aviation-sector emissions.
SAF is one of the available pathways for reducing the lifecycle greenhouse gas emissions associated with aviation fuel. However, it does not eliminate emissions, and its climate benefits depend on feedstock sourcing, production methods and the overall lifecycle emissions profile.
Scaling production and establishing reliable supply chains remain important challenges for the sector. Long-term offtake arrangements can help connect planned production capacity with potential buyers and provide greater commercial visibility for project developers.
The Morocco agreement adds another prospective source of renewable aviation and transport fuels to Shell’s supply network, although actual deliveries will depend on the facility reaching commercial operations as scheduled.
Bioenergy Business Analysis
Shell’s agreement with Green Sky Manara highlights the growing importance of long-term offtake arrangements in the development of the global sustainable aviation fuel market.
The approximately 150,000-tpy offtake volume represents a significant planned supply arrangement, while the inclusion of HVO, bionaphtha and biopropane indicates that the Port Nador facility is intended to serve multiple renewable fuel markets.
For project developers, securing an established international trading partner can strengthen the commercial framework for a planned facility. For Shell, the agreement expands its prospective access to renewable fuel volumes and supports its role in connecting producers with aviation and other fuel customers.
The October 2028 start-up target will be an important milestone to monitor. The project’s eventual contribution to SAF supply will depend on construction progress, feedstock availability, production economics and the ability to deliver fuel that meets relevant aviation fuel specifications.
