Egypt Advances $570 Million SAF Project in Alexandria Targeting 120,000 Tonnes Output by 2029

Alexandria Moves Forward on Strategic SAF Investment

A major industrial site on Egypt’s Mediterranean coast is moving closer to becoming a cornerstone of the country’s low-carbon aviation strategy. Egyptian Petrochemicals Holding Company (ECHEM) confirmed that its $570 million sustainable aviation fuel (SAF) project in Alexandria has entered an advanced development phase, with permitting, contracting, and financing all actively progressing.

The project is being developed by Egyptian Sustainable Aviation Fuel Company (ESAF), a subsidiary of ECHEM, and is designed to produce 120,000 tonnes of SAF annually. Commercial operations are targeted for 2029, placing Egypt among a growing group of countries seeking to localize SAF production as aviation faces mounting decarbonization pressure.

Technology Partnerships and Feedstock Strategy

At the core of the project is a technology partnership with US-based Honeywell UOP, which will provide advanced hydrotreating capabilities. In December 2025, ESAF formalized this collaboration through a licensing agreement aimed at deploying conversion technology capable of processing waste-based inputs into aviation fuel.

The agreement was signed by ESAF Chairman Tamer Heikal and Honeywell’s Matt Spalding, Vice President for Honeywell Energy and Sustainability Solutions (ESS) for Asia Pacific, Middle East, North Africa and India.

The project will rely on used cooking oil as its primary feedstock, aligning with broader industry efforts to prioritize waste-derived inputs over crop-based alternatives. This approach is expected to reduce lifecycle emissions significantly while avoiding land-use concerns often associated with first-generation biofuels.

According to official estimates, the facility could cut up to 400,000 tonnes of CO2 emissions annually once operational, a figure that places it among the more impactful SAF projects currently under development in emerging markets.