Global law firm Clifford Chance has advised the lenders on the financing of Egypt's first sustainable aviation fuel (SAF) production facility.
The project marks the development of the first project-financed SAF plant in Africa and the Middle East.
The $212.4 million (£181 million) project is supported by a $142.9 million (£122 million) debt package provided by The Arab Energy Fund (TAEF), Qatar National Bank (QNB) and The Emerging Africa & Asia Infrastructure Fund and Emerging Markets Transition Debt Fund, funds managed by Ninety One.
Shell will act as the plant's primary feedstock provider and sole offtaker, pursuant to a long-term take-or-pay offtake agreement, supporting the project's long-term commercial viability. Axens will provide its proprietary processing technology.
Located in the Sokhna Special Economic Zone in Egypt, the project is being developed with the support of sponsors Green Sky Capital Management, Al Mana Holding and Vision Invest.
The facility is designed to produce 200,000 tonnes per annum of biofuels, including SAF and other green products and will utilise Hydroprocessed Esters and Fatty Acids (HEFA) technology to convert waste-based feedstock into high-grade sustainable fuel.
Nicholas Wong, partner, commented: " This financing demonstrates how we are helping to bring together the right combination of lenders and commercial arrangements to support the development of SAF infrastructure and establish a bankable model for future projects in the region.”
Tom Capel, counsel, added: " As the first project-financed SAF facility in the region, this project sets important precedents, deepens the market's understanding of how SAF infrastructure can be developed and financed, and builds confidence across the sector. Transactions such as this demonstrate how the right combination of stakeholders can come together and execute meaningful energy transition projects at scale and with efficiency."
