Egypt launches ESAF company to drive green energy transition

Updated 11/10/2024 8:03:00 AM

Arab Finance: Minister of Petroleum and Mineral Resources Karim Badawi led the inaugural assembly of the new company for electro-sustainable aviation fuel (ESAF) production via video conference, as per a statement.

The assembly was joined by the Chairman of the Egyptian Petrochemicals Holding Company (ECHEM) Ibrahim Mekki and stakeholders.

This facility is expected to cut carbon emissions by up to 400,000 tons annually at an estimated investment of $530 million in Alexandria.

The new company aims to begin production within the next few years, working in synergy with existing petroleum companies in the region.

The ESAF company’s ownership structure is 85% state-controlled, with the remaining 15% held by private sector partners.

The project, with an estimated production capacity of 120,000 tons of sustainable aviation fuel per year, will utilize local waste as a primary feedstock and employ the latest global technology.

The ESAF company’s formation aligns with global efforts to tackle climate change by developing environmentally friendly, renewable energy solutions that support Egypt’s transition to a green economy, Badawi said.

This company is part of the state’s broader strategy to foster sustainable energy investments and enhance local economic returns by promoting cutting-edge green technologies.

Egypt’s compliance with international regulations, which require gradual increases in the mix of sustainable fuel in traditional jet fuel, also influenced the ESAF’s company launch.

Under EU guidelines, airlines must start with a 2% sustainable fuel mix in 2025, progressing to 70% by 2050.