en.Wedoany.com Reported - Egyptian Petrochemicals Holding Company has confirmed that the $570 million sustainable aviation fuel project at Alexandria Port has entered an advanced stage of development, with licensing approvals, contract signing, and financing efforts underway. The project, developed by Egypt Sustainable Aviation Fuel Company, plans to achieve an annual production capacity of 120,000 tons by 2029, primarily using waste cooking oil as feedstock. Once operational, it is expected to reduce carbon dioxide emissions by up to 400,000 tons annually.

This sustainable aviation fuel facility in Alexandria Port is a key project for Egypt's advancement in low-carbon aviation fuels. The developer, Egypt Sustainable Aviation Fuel Company, a subsidiary of Egyptian Petrochemicals Holding Company, has already completed the implementation of key technology collaborations. According to disclosures, in December 2025, the company established a partnership through a licensing agreement with U.S.-based Honeywell UOP, which will provide hydroprocessing technology. The relevant agreement was signed by Tamer Heikal, Chairman of Egypt Sustainable Aviation Fuel Company, and Matt Spaulding, Head of Honeywell's Energy & Sustainability Solutions business.

In terms of construction scope, the project adopts a waste feedstock route rather than a crop-based feedstock route, with the core process being the conversion of waste cooking oil into sustainable aviation fuel. This feedstock configuration ensures the project addresses aviation emission reduction scenarios while avoiding the land-use issues commonly associated with first-generation biofuels. The project is currently in the advanced development stage, indicating that preliminary technology licensing has been secured, and the project is transitioning from the planning and permitting phase to the financing, contract finalization, and final technology pathway determination phase.

However, the project still faces the common execution constraints typical of large-scale sustainable aviation fuel facilities. Egyptian Petrochemicals Holding Company stated that financing arrangements are in progress, key contracts are being finalized, and the selection of the process licensor is not yet complete. Whether commercial operation can be achieved by 2029 depends on financing costs, construction schedule control, and feedstock supply stability. In the context of the global market, the International Air Transport Association has lowered its 2025 sustainable aviation fuel production forecast, noting that current sustainable aviation fuel prices are about twice that of conventional jet fuel, and can even reach five times in markets with mandatory blending requirements. Whether the Alexandria Port project can supply fuel at a more competitive cost in the future will directly impact its post-commissioning implementation pace.

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