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ECHEM & ANRPC consider USD 380M sustainable aviation fuel project

With an estimated capacity of 120K tons annually

What

ECHEM (Egyptian Petrochemicals Holding Company) and ANRPC (Alexandria National Refining and Petrochemicals Company) are considering a partnership with an undisclosed local private-sector entity to embark on a USD 380 million sustainable aviation fuel (SAF) project, as reported by Asharq Business, citing an anonymous government source.

So What

Regarding ownership structure, ECHEM is anticipated to hold a majority stake of 70%, while both ANRPC and the private sector partner will each hold 15%.

Now What

The project, currently in the study phase, aims to establish a sustainable aviation fuel production facility with an estimated annual capacity of 120,000 tons. The financial assessment for the project is expected to conclude in April, paving the way for work to commence by late 2026. External lenders are poised to contribute approximately USD 280 million to the project’s financing.

Some Context

Sustainable aviation fuel (SAF) is a biofuel derived from non-petroleum sources like waste cooking oil, animal fats, and non-food crops. It offers significant environmental benefits, with the potential to reduce carbon emissions by up to 80% compared to traditional jet fuel. Aviation accounted for 2% of energy-related carbon emissions in 2022, according to the International Energy Agency.