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

Shell partners with Green Sky Capital to purchase sustainable aviation fuel from Egypt’s first commercial-scale plant, targeting 145,000 tonnes annually by 2027.

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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

Photo Credit: Shell

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Sustainable Aviation

Delta Air Lines Installs VCT Finlets on 240 Boeing 737NG Jets

Delta Air Lines will fit aerodynamic finlets from Vortex Control Technologies on 240 Boeing 737-800 and 737-900ER aircraft.

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Delta Air Lines will install aerodynamic finlets from Vortex Control Technologies across 240 of its Boeing 737 Next Generation aircraft to reduce drag and lower fuel consumption.

Announced in a company press release on June 17, 2026, the modification program targets the carrier’s Boeing 737-800 and 737-900ER fleets. The installation follows computational fluid dynamics analysis and flight test validation, aligning with Delta’s broader sustainability objectives to address the 90 percent of its carbon footprint generated by jet fuel.

Aerodynamic modifications and fleet implementation

The Vortex Control Technologies (VCT) finlet package consists of small aerodynamic devices installed on the aft fuselage of the aircraft. These structures are designed to reshape airflow around the tail section, reducing flow separation and improving overall pressure distribution. By mitigating aerodynamic drag, the finlets directly decrease the amount of thrust required during cruise, resulting in lower fuel burn.

Delta Air Lines Chief Sustainability Officer Amelia DeLuca stated that the carrier seeks out innovations that reduce environmental impact and generate long-term operational benefits.

“We appreciate the strong partnership with VCT throughout the evaluation process and are looking forward to this implementation to further support our ongoing fleet efficiency initiatives,” DeLuca said.

VCT Chief Executive Officer Gil Morgan noted that equipping the 240 Delta aircraft represents a significant milestone for the manufacturer.

“We are proud to provide a practical technology that helps airlines improve fuel efficiency, reduce carbon emissions and enhance operating economics,” Morgan said.

Regulatory approval and industry adoption

The VCT finlet system operates under a Federal Aviation Administration (FAA) Supplemental Type Certificate (STC). The technology has steadily gained traction among Boeing 737 Next Generation (737NG) operators seeking incremental efficiency improvements. On September 26, 2025, the European Union Aviation Safety Agency (EASA) validated the FAA STC, clearing the devices for installation on European-registered aircraft.

Other operators have also adopted the modification. On July 29, 2025, Avelo Airlines announced a follow-on order for additional VCT finlets. The carrier reported proven fuel savings and emissions reductions after 18 months of in-service performance across its own Boeing 737NG fleet.

AirPro News analysis

We view Delta’s adoption of aft-fuselage finlets as a pragmatic approach to extending the economic viability of its Boeing 737NG fleet. While winglets have long been the industry standard for drag reduction, aft-body modifications represent an incremental but valuable efficiency gain for mature airframes. As airlines manage delayed deliveries of next-generation narrowbody aircraft, retrofitting existing fleets with drag-reducing technology offers an immediate reduction in fuel burn and emissions without requiring significant downtime or capital expenditure.

Sources: Delta News Hub

Photo Credit: Delta Air Lines

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Sustainable Aviation

ATR Calls for EU Action on Regional Aviation Decarbonisation

ATR urges the EU to support regional aviation decarbonisation through SAF, retrofits, and next-gen propulsion funding.

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Regional aircraft manufacturer ATR is urging the European Union (EU) to implement a coordinated financial and regulatory framework to support the decarbonisation of regional aviation, warning that the bloc risks losing its industrial sovereignty in the aeronautics sector.

In a public statement issued on June 16, 2026, the manufacturer detailed its strategic priorities following a June 9 gathering at the European Parliament. The event brought together industry stakeholders and policymakers under the patronage of Members of the European Parliament (MEP) Claire Fita and François Kalfon.

Strategic priorities for European regional aviation

ATR is positioning the regional aviation sector as the essential testing ground for low-carbon technologies. The company argues that regional Commercial-Aircraft, due to their size and mission profiles, offer the first commercially viable scale for validating emerging propulsion systems and retrofit technologies under real-world airline operating conditions.

To accelerate this transition, ATR is lobbying for pragmatic financial support directed toward SAF deployment, retrofit programs, and the development of next-generation propulsion. The manufacturer stressed that without coordinated regulatory and financial backing, Europe’s aerospace industry could cede its leadership position to international competitors.

Balancing decarbonisation with connectivity

The European aviation sector is currently navigating a complex transition driven by stringent environmental regulations and the high capital costs associated with fleet renewal and alternative fuels. ATR highlighted a growing concern among regional operators that the aggressive push for low-emission aviation could disproportionately impact connectivity in remote and underserved areas if not supported by adequate funding mechanisms.

The manufacturer identified SAF as the most effective short-to-medium-term lever for reducing carbon dioxide emissions. However, ATR noted that widespread adoption requires coordinated regulatory backing to ensure adequate supply and to manage the associated costs for smaller regional operators.

AirPro News analysis

We view ATR’s lobbying efforts at the European Parliament as a strategic move to ensure regional aviation is not overlooked in the EU’s broader environmental funding allocations. As mandates like the ReFuelEU Aviation initiative take effect, regional Airlines face disproportionate financial burdens compared to major network carriers due to their tighter margins and smaller economies of scale.

By framing the turboprop segment as the necessary incubator for future technologies, ATR is attempting to secure direct EU investment for its operators and its own research and development pipeline. The emphasis on industrial sovereignty also aligns closely with current European political priorities, reminding policymakers that supporting domestic Manufacturers is critical to maintaining a competitive edge against emerging aerospace programs globally.

Sources: ATR

Photo Credit: ATR

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Sustainable Aviation

Twelve Opens First US Commercial Power-to-Liquid SAF Plant

Twelve’s AirPlant One in Moses Lake, WA begins producing E-Jet fuel from CO2, water, and renewable electricity.

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Industrial carbon transformation company Twelve officially opened AirPlant One in Moses Lake, Washington, on June 10, 2026, establishing the first commercial-scale facility in the United States dedicated to producing power-to-liquid SAF. The facility utilizes captured carbon dioxide, water, and renewable electricity to manufacture synthetic fuel without upstream fossil fuel extraction.

In a press release issued by Twelve, the company confirmed the plant is now operational and producing E-Jet fuel, alongside a byproduct called E-Naphtha. The milestone follows a $645 million funding round secured in September 2024 to scale operations and fulfills a 2022 joint commitment from Alaska Airlines (AS) and Microsoft Corporation to purchase the facility’s output.

Commercializing power-to-liquid aviation fuel

Twelve’s proprietary process bypasses traditional biomass-based sustainable aviation fuel (SAF) production methods. Instead, the Moses Lake facility synthesizes drop-in aviation fuel directly from renewable electricity, water, and captured carbon dioxide. According to the company, this E-Jet fuel delivers up to a 90% reduction in lifecycle carbon emissions compared to conventional jet fuel.

Beyond emissions reductions, the power-to-liquid model introduces a new economic framework for Airlines fuel procurement. Because the primary input cost is electricity, production can be tied to long-term power purchase agreements. Twelve states this structure can offer airlines price predictability horizons exceeding 10 years, insulating operators from the volatility of global crude oil markets.

“We broke ground on AirPlant One with a simple thesis: that the fuels powering the global economy could be made from renewable electricity and air, anywhere in the world,” said Nicholas Flanders, Co-Founder and CEO of Twelve. “Today, that thesis is operational and Alaska Airlines will fly on fuel made right here in Washington State.”

Corporate Partnerships and market demand

The development of AirPlant One relied heavily on early demand signals from major corporate partners. In 2022, Alaska Airlines and Microsoft committed to purchasing the facility’s future output, providing the commercial foundation necessary to secure project financing. Alaska Star Ventures, the airline’s investment arm, also participated in Twelve’s recent funding rounds.

Ryan Spies, Managing Director of Sustainability for Alaska Airlines, noted that the partnership demonstrates how collaboration can advance SAF technology while diversifying fuel supply chains and strengthening energy security.

Microsoft is utilizing a book-and-claim accounting model to apply the environmental attributes of the E-Jet fuel toward reducing its reported business travel emissions. Melanie Nakagawa, Chief Sustainability Officer at Microsoft, stated that the company’s investment helps scale energy solutions and lays the groundwork for cleaner aviation globally.

AirPro News analysis

The activation of AirPlant One represents a critical pivot point for the US sustainable aviation fuel market. While biomass-derived SAF currently dominates the limited global supply, agricultural and waste feedstock constraints will eventually cap its scalability. Power-to-liquid synthetic fuels offer a theoretically limitless production ceiling, provided sufficient renewable energy and carbon capture infrastructure exist.

We view the localized production aspect as increasingly vital. As international Regulations begin mandating physical SAF blending at specific airports rather than relying entirely on book-and-claim credits, domestic facilities like AirPlant One will become essential infrastructure. The ability to offer airlines decade-long fixed fuel prices could also fundamentally alter airline cost structures if power-to-liquid production reaches parity with conventional jet fuel volumes.

Sources: Twelve Benefit Corporation

Photo Credit: Twelve Benefit Corporation

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