Rédaction Africa Links 24 with Egypt Independent
Published on 2024-02-23 04:10:34
Egyptian investors from both the government and the private sectors are currently in talks to establish a joint project aimed at producing sustainable aviation fuel. The project is expected to require an investment of around US$380 million. This information was disclosed by an anonymous government official in an interview with Al-Sharq Business.
The project’s anticipated production capacity is approximately 120,000 tons on an annual basis. It has been revealed that the participants in this project will include the state-owned Egyptian Petrochemical Holding Company, the state-owned Alexandria National Refining and Petrochemical Company (ANRPEC), and a private company operating in Egypt.
Sustainable aviation fuel serves as an environmentally friendly alternative to the traditional fossil kerosene that is currently used to power jet turbines. It is derived from a variety of sources, including waste oils and fats, sugar crops, as well as some trees and grasses.
One of the major motivations behind the manufacturing of sustainable aviation fuel is its potential to make immediate progress in reducing carbon dioxide (CO2) emissions. Additionally, it is produced without the need to extract additional fossil fuels, making it a more sustainable and eco-friendly option for the aviation industry. Moreover, this environmentally friendly jet fuel can be mixed with the regular jet fuel currently in use, without the need for any modifications to existing aircraft engines.
The government official further disclosed that the financing study for the project is expected to be completed by the following April. It has been proposed that a loan of $280 million will be sought from foreign sources to fund the project. The intended location for the establishment of the project is on the land owned by ANRPC Petroleum, and it is projected to commence operations by the end of 2026.
The Egyptian Petrochemical Holding Company is slated to acquire a majority share of 70 percent in the project’s capital, while ANRPC Petroleum and the private company will each retain 15 percent shares.
In summary, the joint project being considered by Egyptian investors to produce sustainable aviation fuel signifies a significant step towards reducing carbon emissions and promoting eco-friendliness in the aviation industry. The anticipated investment of US$380 million demonstrates a strong commitment to advancing sustainable practices within the sector. It is evident that there is a collective effort from both the government and private sectors to drive innovation and environmental responsibility within the aviation industry.
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