Cairo/Suez: In a landmark development for North Africa’s green energy sector, Egypt has secured a $200 million commitment from Qatar’s Al Mana Holding to establish a cutting-edge Sustainable Aviation Fuel (SAF) facility within the Suez Canal Economic Zone (SCZONE). The agreement marks the first-ever Qatari industrial investment in the strategic economic hub, signaling a deepening of commercial ties between Cairo and Doha, according to the press release.
The state-of-the-art plant, to be situated in the Ain Sokhna Integrated Zone, will occupy a sprawling 100,000-square-meter site. Once operational, it is projected to churn out 200,000 tonnes of green fuel annually. The facility will primarily utilize refined used cooking oil (UCO) as feedstock to produce not only SAF but also valuable low-carbon by-products such as biopropane and bionaphtha.
Strategic Partnerships and Global Offtake Crucial to the project’s viability is a secured long-term offtake agreement with energy major Shell. The deal ensures that Shell will purchase the plant’s entire output, providing immediate commercial stability when deliveries commence in late 2027.
“This initiative represents a pivotal addition to the SCZONE, directly enhancing our capacity to support the global aviation sector’s shift toward renewable energy,” stated Egyptian Prime Minister Mostafa Madbouly. He noted that the contract, signed amidst the backdrop of the Egyptian-Qatari Business Forum, is a testament to the warming diplomatic and economic relations between the two nations.
Decarbonizing the Skies Waleid Gamal El-Dein, Chairman of the SCZONE, emphasized that the project is not just an economic win but an environmental necessity. “By replacing conventional jet kerosene with SAF, we anticipate a reduction in harmful emissions by 50 to 80 percent,” he said. He further highlighted that the partnership with Shell would significantly bolster Egypt’s export portfolio, aligning with the national strategy to curb imports and localize green industries.
Abdulaziz Al-Mana, CEO of Al Mana Holding, expressed confidence in Egypt’s investment climate, praising the government’s proactive support in fast-tracking the project’s implementation. The SCZONE currently hosts 457 companies, with nearly 300 joining since the 2022/2023 fiscal year, reflecting a surge in investor confidence.
India’s Sustainable Aviation Fuel (SAF) Landscape: Current Status (December 2025)
As Egypt advances its SAF capabilities, India is simultaneously accelerating its own transition to green aviation to meet the International Civil Aviation Organization’s (ICAO) CORSIA mandates.
- Policy & Blending Mandates: The Indian government has set indicative targets for blending SAF with conventional jet fuel. The roadmap mandates a 1% SAF blend for international flights by 2027, scaling up to 2% by 2028 and 5% by 2030. A comprehensive policy framework is expected to be released for final stakeholder consultation in January 2026.
- Infrastructure Rollout: The sector is witnessing its first major operational milestone this month. Indian Oil Corporation (IOCL) is commissioning its SAF plant at the Panipat Refinery (December 2025), with an annual capacity of 35,000 tonnes based on the Hydroprocessed Esters and Fatty Acids (HEFA) pathway using used cooking oil.
Emerging Opportunities
India’s unique agricultural landscape offers distinct advantages for investors and developers in the SAF domain:
- The Ethanol Advantage (Alcohol-to-Jet): Unlike many regions relying solely on used cooking oil (which has supply constraints), India possesses a massive surplus of ethanol derived from sugarcane and grain. This positions the Alcohol-to-Jet (AtJ) technology pathway as a $70-85 billion opportunity. Indian sugarcane ethanol is noted for having a lower carbon intensity than Brazilian variants, making it highly attractive for export to the European Union.
- Export Hub Potential: With domestic blending mandates starting at 1% (~14 crore liters), India has the capacity to produce far in excess of local demand. The country is positioning itself as a key export hub for the Global South and Southeast Asia, where bio-feedstock availability is lower.
- Tech Integration: There is a growing opportunity for technology providers to partner with Indian sugar conglomerates (like Triveni Engineering and Balrampur Chini) to set up decentralized AtJ plants, converting the country’s sugar belt into a fuel hub for the future of aviation.
