The aviation sector plays a significant role in global greenhouse gas emissions, accounting for a notable portion of the transportation industry’s carbon footprint. As the world strives to meet the ambitious targets set by the Paris Agreement, it becomes increasingly clear that transformative changes are essential within this challenging sector. One of the most promising developments in this arena is the establishment of the Sustainable Aviation Fuel Company (ESAF) in Egypt. This initiative underscores the country’s commitment to supporting global climate change mitigation efforts through the production of SAF, a biofuel that mirrors the properties of traditional jet fuel while significantly reducing carbon emissions.
Decarbonizing the Aviation Sector
The aviation sector significantly contributes to greenhouse gas emissions, requiring substantial changes to meet Paris Agreement goals. Key strategies for reducing these emissions include improving efficiency, transitioning to alternative fuels, adopting new technologies, and implementing carbon removal methods.
The Insurance Federation of Egypt (IFE) revealed in July 2024 that the aviation sector’s CO2 emissions from fuel make up 12% of the whole transportation sector’s CO2 emissions. Although the aviation sector represents a relatively small share of global emissions, it is one of the most difficult sectors to decarbonize, because it requires low-carbon technologies that are expensive. Nevertheless, the sector has committed to achieving net-zero emissions by 2050, according to the IFE.
The Role and Benefits of SAF and Establishment of ESAF in Egypt
The Egyptian petrochemicals sector is working to support Egypt’s decarbonization targets through several projects, including the production of sustainable aviation fuel (SAF).
SAF is a biofuel used to power aircraft that has similar properties to conventional fossil jet fuel, but with a smaller carbon footprint. It is also defined as renewable or waste-derived fuel that meets environmental sustainability criteria by significantly reducing greenhouse gas emissions throughout the life cycle compared to conventional fossil fuel. SAF can be produced from a number of sources, including vegetable oils, animal fats, as well as organic or plastic waste.
In November 2024, Minister of Petroleum and Mineral Resources Karim Badawi inaugurated the Sustainable Aviation Fuel Company (ESAF). The company supports global climate change mitigation efforts by developing environmentally friendly and renewable energy sources for aviation. ESAF also advances Egypt’s green economy transition, fostering sustainable energy investment, technology localization, and economic growth.
ESAF’s ownership is structured with 85% held by Egyptian public petroleum sector companies and 15% by private sector partners.
The project, with an estimated $530 million investment, will utilize advanced global technology to convert locally sourced waste into 120,000 tons of sustainable aviation fuel annually. This is projected to reduce carbon dioxide emissions by up to 400,000 tons per year. The ESAF company is established in a strategic location in Alexandria, as it is expected to integrate with existing petroleum infrastructure, enhancing efficiency and promoting sustainable energy development.
The Establishment of ESAF in Egypt marks a pivotal step toward addressing the significant greenhouse gas emissions generated by the aviation sector. As this industry grapples with the challenges of decarbonization, the innovative production of SAF emerges as a crucial strategy for reducing its carbon footprint.
