The Minister of Petroleum and Mineral Resources, Karim Badawi, held a joint meeting with the Minister of Environment, Yasmine Fouad, and Minister of Civil Aviation, Sameh El-Hefny, to explore coordination mechanisms among the three ministries to produce sustainable aviation fuel (SAF)–a project implemented by the Egyptian Petrochemicals Holding Company (ECHEM) as part of the ministry’s green strategy.

The project aims to meet the local demand expected for this type of green fuel over the next few years. It also opens new horizons for export to foreign markets, capitalizing on the growing global demand, especially with the petroleum sector having the technical and logistical components needed for success.

Notably, the project is part of a broader package of green initiatives adopted by the ministry through ECHEM to provide green, environmentally friendly products and reduce carbon emissions.

Badawi said that the meeting reinforces the ministries’ joint efforts and demonstrates the government’s keenness on executing projects with significant economic and environmental value.

For her part, Minister Fouad said that this cooperation for SAF reflects the state’s commitment to a seamless transition toward a green economy. She added that in coordination with the Ministries of Petroleum and Civil Aviation, her ministry is working to develop a clear roadmap that supports this project, with stimulating investments and building partnerships with the private sector as its main pillars. She noted that this type of biofuel is a clean, safe alternative that meets international environmental standards.

She pointed out that selling or trading carbon certificates is not permitted except in accordance with specific controls and standards. Moreover, the Ministry of Petroleum has set emission reduction rates within the national contributions plan for several high-priority projects.

Discussing waste management, Fouad said that it is an area with plenty of green incentives and privileges available for investors under the investment law. Four areas where opportunities for effective private sector participation in investment are especially vast are: green hydrogen, electric transportation, waste management, and alternatives to single-use plastic bags.

Fouad revealed that the Waste Management Regulatory Agency will soon present a business model for using biofuel production inputs from used cooking oils, agricultural waste, and other sources. The model will determine economic feasibility and cost to ensure the sustainability of the field, and its long-term ability to attract investments, she said.

For his part, Minister El-Hefny underlined the importance of localizing SAF production in Egypt following international standards set by the International Civil Aviation Organization (ICAO).

He added that establishing the Egyptian Sustainable Aviation Fuel (ESAF) Company is a major milestone in the journey towards leading this promising industry in Africa.

El-Hefny praised the pivotal role played by the Ministry of Petroleum and Mineral Resources with its advanced expertise in the fields of refining and energy. It is greatly contributing to supporting local and international high-quality production. He also said that a comprehensive feasibility study is crucial. It should include technical, economic, and operational aspects, and be approved by the concerned authorities.

Equally important is the development of effective logistical mechanisms to ensure the efficiency of the supply and distribution chain, both within Egyptian airports and internationally. This would guarantee high performance and sustainability.

During the meeting, Chairman of ECHEM, Ibrahim Mekki, noted that ESAF, a first-of-its-kind project in Africa and the Middle East, relies on a modern, internationally-approved technology to produce SAF from used cooking oil.

He noted that creating a joint follow-up team from the three concerned ministries is a catalyst for the project’s implementation and the maximization of its economic and environmental returns.

During the meeting, Tamer Heakal, Chairman of ESAF, reviewed the project’s business plan, objectives, and implementation procedures.

ESAF, a $530 million investment project, is expected to produce 120,000 tons of SAF annually, utilizing advanced hydrotreatment technologies for conversion. Production is planned to meet local demand and support exports to global markets. The project spans an area of 100,000 square meters near the Dekheila Port, Heakal noted.

He revealed that selecting a manufacturing license and an engineering, procurement, and construction (EPC) contractor is still in progress. Additionally, the selection process of international financing agencies is underway and is seeing notable progress. Similarly, efforts to market the project’s output to global companies and secure input from used cooking oil are advancing steadily, according to Haekal.

He concluded by further reviewing the necessary support to accelerate the project and yield the highest profits possible through the combined efforts of the Ministries of Environment and Civil Aviation.