Minister of Petroleum and Mineral Resources Karim Badawi chaired the founding assembly of the Sustainable Aviation Fuel (ESAF) Company via video conference, joined by Ibrahim Mekki, Chairman of the Egyptian Petrochemicals Holding Company (ECHEM), along with other shareholders.

Badawi stated that ESAF’s establishment aligns with global efforts to combat climate change by advancing environmentally friendly and Renewable Energy sources for both the medium and long term.

ESAF further supports Egypt’s strategy for a gradual shift toward a greener economy, enhancing investment opportunities in sustainable energy, promoting the localization of advanced technologies, and generating economic returns for the country.

Egypt remains committed to international regulations mandating global airlines blend traditional jet fuel with sustainable alternatives within EU airspace, with targets set at 2% by 2025 and reaching 70% by 2050.

ESAF’s ownership structure comprises an 85% stake held by Egyptian public petroleum sector companies and a 15% stake owned by the private sector.

Mekki outlined the project’s scope, with a design capacity of 120,000 tons per year, utilizing locally sourced waste as a primary feedstock, and employing state-of-the-art global technology. The project aims to reduce carbon dioxide emissions by up to 400,000 tons annually, with an estimated investment cost of around $530 million.

Located in Alexandria Governorate, the project complements existing petroleum sector operations in the area, with production expected to begin in the next few years.