RIYADH: Egypt has signed a $200 million agreement with Qatar’s Al Mana Holding to develop a sustainable aviation fuel plant in the Suez Canal Economic Zone, marking the first Qatari industrial investment in the area. 

The project, located in the Ain Sokhna Integrated Zone, will be built on a 100,000-sq.-meter site and have an annual production capacity of 200,000 tonnes, according to a post on the official account of the Egyptian Cabinet Presidency. 

The facility will produce sustainable aviation fuel and by-products, including biopropane and bionaphtha, using refined used cooking oil. 

Al Mana Holding has secured a long-term supply agreement with Shell for the full output of the project, with deliveries of sustainable aviation fuel expected to begin by the end of 2027. 

The project aligns with Egypt’s national plans to support the aviation sector in line with environmental sustainability standards, amid strong global growth expectations for cleaner aviation fuels.  

“This project is a new addition that enhances the capabilities of the economic zone in keeping pace with the global trend toward relying on renewable energy sources, especially in supporting the promising aviation sector,” Egypt’s Prime Minister Mostafa Madbouly said. 

Madbouly added that the signing of the contract, which coincided with the Egyptian-Qatari Business Forum in Cairo, reflects recent improvements in bilateral relations and the desire of both countries’ leaderships to translate political cooperation into increased investment and trade. 

Waleid Gamal El-Dein, chairman of the SCZONE, said environmental sustainability is a core pillar of the zone’s strategy. “The project will lead to a reduction in harmful emissions by rates ranging between 50 to 80 percent compared to conventional fuel,” he added. 

He said securing a long-term offtake agreement with Shell would help boost exports from projects within the SCZONE and support Egypt’s broader plans to increase exports and reduce imports. 

The total number of companies established in the SCZONE has reached 457, including 296 formed since the start of the 2022/2023 fiscal year, with total issued capital of $785 million from investors across multiple countries, according to Gamal El-Dein. 

Abdulaziz Al-Mana, CEO of Al Mana Holding and chairman of Green Sky Capital, said the company was pleased to partner with the SCZONE, praising Egypt’s investment environment and government support in facilitating project implementation.