Green Sky Capital Secures Financing for Egypt’s First Sustainable Aviation Fuel Facility
📋 Key Takeaway: Green Sky Capital has signed financing for a Sustainable Aviation Fuel facility in Ain Sokhna, Egypt, marking a significant step in the region’s energy transition.
Financing Agreement and Project Overview
Qatar-based Green Sky Capital has secured financing for a groundbreaking Sustainable Aviation Fuel (SAF) production facility in Ain Sokhna, Egypt. This project, located within the Suez Canal Economic Zone, is poised to be the first of its kind in the region, contributing significantly to the development of a large-scale SAF industry. The engineering, procurement, and construction contract for the facility has been awarded to the French group SeaOwl.
The new plant will occupy a 100,000-square meter site and is projected to produce up to 200,000 tonnes annually of various biofuels, including SAF, Hydrotreated Vegetable Oil, biopropane, and bionaphtha. With commercial operations targeted to commence by the end of 2027, the facility aims to bolster the region’s role in global energy transition value chains.
Strategic Partnerships and Support
Green Sky Capital’s project is supported by several prominent regional sponsors, including Al Mana Holding, a diversified Qatari conglomerate, and Vision Invest, a Saudi Arabian infrastructure investor. Both sponsors bring extensive experience in executing large-scale infrastructure and energy projects across the region, enhancing the credibility and potential success of the SAF facility.
The Arab Energy Fund, a multilateral impact financial institution, has played a pivotal role as the Global Structuring Bank and Co-Mandated Lead Arranger for the financing, serving as the largest lender for the project. Additionally, the Emerging Africa & Asia Infrastructure Fund Limited (EAAIF), through Ninety One, acted as the Global Mandated Lead Arranger and Coordinating Lender, underlining its commitment to sustainable aviation fuel initiatives.
Industry Impact and Future Prospects
Green Sky Capital’s SAF facility is expected to significantly impact the aviation sector’s decarbonization efforts, aligning with the International Air Transport Association’s target of achieving net-zero carbon emissions by 2050. The project represents a strategic milestone for the energy transition in the region, positioning Green Sky Capital as a leader in the rapidly growing global SAF market.
The facility benefits from a long-term offtake agreement with Shell, which will ensure a stable market for its production. Furthermore, Green Sky Capital has entered into a technology agreement with Axens, while Rothschild & Co provided financial advisory services for the transaction. Legal advisory roles were filled by White & Case for the borrower and Clifford Chance for the lenders.
Frequently Asked Questions
What is the purpose of the new SAF facility in Egypt?
The facility aims to produce sustainable aviation fuel and other biofuels, supporting the aviation sector’s decarbonization.
Who are the key partners involved in this project?
Key partners include Al Mana Holding, Vision Invest, the Arab Energy Fund, and Ninety One.
When is the facility expected to commence operations?
Commercial operations are targeted to begin by the end of 2027.
How much SAF will the facility produce annually?
The facility is expected to produce up to 200,000 tonnes of biofuels annually.
What role does Shell play in this project?
Shell has entered into a long-term offtake agreement for the fuel produced at the facility.
