Egypt is stepping up efforts to enter the burgeoning market of Sustainable Aviation Fuel (SAF) with the recent launch of its Sustainable Aviation Fuel Company, known as ESAF. This initiative reflects Egypt's broader commitment to environmental sustainability and adherence to international regulations aimed at reducing greenhouse gas emissions from the aviation sector.
At the helm of this ambitious project is the Minister of Petroleum and Mineral Resources, Karim Badawi, who presided over the founding assembly via video conference alongside key stakeholders, including Ibrahim Mekki, Chairman of the Egyptian Petrochemicals Holding Company (ECHEM). Badawi asserted during the meeting, "The establishment of ESAF is consistent with the global battle against climate change, pushing for environmentally friendly solutions as part of our energy transition strategy."
ESAF aims not only to produce SAF but also to support Egypt's gradual shift toward greener energy sources. The project is poised to generate new investment opportunities within the sustainable energy sector, promote the localization of advanced technologies, and generate economic returns as Egypt diversifies its energy portfolio.
To align with international mandates, such as the European Union's requirement for airlines to blend conventional jet fuel with sustainable alternatives—demanding at least 2% by 2025 and pushing for 70% by 2050—Egypt is making significant strides. ESAF's ownership structure consists primarily of public petroleum sector companies, holding 85% of the shares, with the remaining 15% allocated to private sector partners.
The projected capacity of the ESAF facility is impressive, targeting 120,000 tons of SAF production annually by transforming locally sourced waste materials. The technological backbone of the facility is cutting-edge and promises to significantly reduce carbon emissions, with estimates indicating potential reductions of up to 400,000 tons of CO2 each year. The investment required for this project is projected to be around $530 million, demonstrating Egypt's serious commitment to sustainable development.
Located strategically within the Alexandria Governorate, the ESAF facility is expected to integrate seamlessly with existing petroleum operations already established there. Production from ESAF is anticipated to commence within the next few years and aligns neatly with Egypt's broader economic objectives.
Across the globe, the development of SAF is gaining traction due to its potential to lower aviation's carbon footprint. The importance of SAF cannot be overstated; according to the International Air Transport Association (IATA), sustainable aviation fuels could be responsible for over 65% of the aviation industry's targeted emissions reductions. The SAF market is projected to expand dramatically, reaching 407 million tons by 2050 as airlines scramble to meet stringent reduction targets and consumer expectations.
Elsewhere, the Asian Development Bank (ADB) has made headlines for its involvement with Pakistan's own SAF strategy, approving significant funding for developing facilities at the heart of Pakistan's campaign to capitalize on local waste resources. The ADB has allocated approximately $86.2 million to assist the country in establishing its SAF production capabilities, which are expected to convert local waste materials—a move poised to bring substantial economic benefits and create skilled jobs. This collaboration with Bio Tech Energy (BTE), which has been operating since 2016, will build upon existing biodiesel operations.
The new facility will have the capacity to produce 200 kilotonnes of SAF annually, augmenting Pakistan's existing biodiesel supply—which currently supplies European markets—by utilizing waste-based feedstocks like used cooking oil. This approach not only enhances sustainability but also directly addresses challenges such as the illegal gutter oil market.
Pakistan is positioned to collect around 20% of its total collectable feedstock as part of this venture, aspiring to dredge up approximately 260,000 tons through increased collection points established across multiple major cities, including Karachi and Islamabad. This innovative strategy aligns with global trends where countries are ramping up efforts to produce SAF to meet rising demand and regulatory pressures.
From Cairo to Islamabad, these initiatives represent significant regional efforts aimed at fostering sustainable energy markets. With investments spanning millions and the adoption of cutting-edge technologies, both Egypt and Pakistan are carving out their paths to becoming acknowledged leaders within the sustainable aviation fuel space.