Shell Secures Long-Term Deal for Egypt’s First Commercial-Scale Sustainable Aviation Fuel Plant

This article is based on an official press release from Shell.

Shell has officially entered into a long-term agreement to purchase sustainable aviation fuel (SAF) from Green Sky Capital, a renewable fuel developer focused on the Middle East and North Africa (MENA) region. The deal, announced recently, secures 100 percent of the output from what is slated to be Egypt’s first commercial-scale SAF production facility.

This offtake agreement provides the necessary commercial certainty for investors to proceed with the construction of the plant. According to the company’s announcement, the facility is expected to commence operations by the end of 2027. Once fully operational, it will significantly bolster the supply of low-carbon fuels in the region and support the aviation industry’s broader decarbonization goals.

Agreement Overview and Production Capacity

The partnership between Shell and Green Sky Capital marks a significant step in scaling global SAF availability. By committing to purchase the entire output of the facility, Shell is effectively de-risking the project for its developers and financiers.

Facility Specifications and Timeline

The new plant is projected to produce up to 145,000 tonnes of SAF annually. In addition to aviation fuel, the facility will generate bionaphtha and biopropane as by-products. Shell reports that the use of these fuels is expected to contribute to a yearly reduction of up to 500,000 tons of carbon dioxide equivalent (CO2e) emissions.

While specific location details were not itemized in the press statement, industry data suggests the facility will be a cornerstone of Egypt’s renewable energy infrastructure. The operational target is set for late 2027, aligning with increasing global mandates for SAF usage.

Executive Commentary

Geoff Mansfield, Vice President of Low Carbon Fuels at Shell Trading, emphasized the strategic importance of the deal in a statement included in the release:

“By securing 100% of the plant’s output, Shell is strengthening its global supply network for low-carbon fuels and helping aviation meet decarbonisation targets.”

Strategic Context and Market Position

This agreement reflects Shell’s broader strategy to become a net-zero emissions energy business by 2050. The company has been aggressively expanding its logistics and supply capabilities to meet the growing demand from airlines facing both regulatory mandates and voluntary sustainability commitments.

Shell’s Global SAF Footprint

According to data released by the company, Shell has established itself as a dominant player in the SAF market:

• Global Reach: As of July 2025, Shell delivers SAF to more than 80 locations across 18 countries.
• Market Share: In 2024, the company accounted for nearly 20 percent of total SAF sales in Europe and North America.

Shell attributes this market position to long-term agreements with producers, strong customer relationships, and strategic investments in logistics infrastructure around key airports and terminals.

About Green Sky Capital

Green Sky Capital serves as the developer for this project. It is identified as a regional renewable-fuel development platform operating within the MENA region. It is important to note that this entity is distinct from the U.S.-based fintech firm GreenSky, LLC, and the Canadian venture capital firm GreenSky Ventures. This project is part of a wider consortium often referred to as the Egyptian Sustainable Aviation Fuel Company (ESAF), involving collaboration with Egyptian state entities.

AirPro News Analysis

The Critical Role of Offtake Agreements

At AirPro News, we observe that 100 percent offtake agreements, like the one signed between Shell and Green Sky Capital, are becoming the “gold standard” for greenfield SAF projects. The primary barrier to entry for new SAF facilities is often not technology, but “bankability.” Lenders are hesitant to finance infrastructure costing hundreds of millions of dollars without guaranteed revenue streams.

By locking in a buyer for the entire 145,000-tonne capacity before the plant is even built, this deal effectively bridges the gap between planning and execution. It signals a maturing market where major energy traders are willing to bet on long-term supply rather than spot-market availability. Furthermore, locating this capacity in Egypt diversifies the global supply chain, reducing the industry’s heavy reliance on production hubs in North America and Western Europe.

Frequently Asked Questions

When will the new facility begin production?
Operations are expected to commence by the end of 2027.

How much fuel will the plant produce?
The facility is designed to produce up to 145,000 tonnes of Sustainable Aviation Fuel (SAF) annually, along with bionaphtha and biopropane.

What is the environmental impact?
The production and use of fuels from this plant are expected to reduce carbon dioxide equivalent emissions by up to 500,000 tons per year.

Who is buying the fuel?
Shell has signed a long-term agreement to purchase 100% of the facility’s output.

Sources

Shell Press Release