Egypt’s state-run Petrochemicals Holding Company has signed a deal with US industrial giant Honeywell to license technology that will enable the conversion of used cooking oil into Sustainable Aviation Fuel/SAF.
Speaking to Al Manassa, company chairperson Ibrahim Mekky said one of the project’s greatest strengths is the availability of feedstock inside Egypt—namely, the enormous volumes of cooking oil discarded daily by households and restaurants.
“So far, we’ve collected about 160,000 tons of UCO,” Mekky said, enough to power the first phase of production. The company aims to produce 120,000 tons of SAF annually in its initial rollout—a cleaner-burning alternative that blends with conventional jet fuel.
Globally, UCO is priced between $700 and $1,000 per ton, while SAF can exceed $3,000 per ton. “Most Egyptians throw used oil in the trash,” Mekky said. “We’re creating value from waste—fuel that meets international aviation standards.”
In 2024, Petrochemicals Holding established Egypt Sustainable Aviation Fuel, a venture 85% owned by state firms and 15% by private sector partners. The initiative supports Egypt’s pledge to the European Union to gradually cut aviation emissions.
Mekky said the company plans to scale SAF blending ratios in local aviation fuel from 2% between 2026–2030, to 5% by 2035, and over 10% by 2040.
SAF production remains limited globally. While some countries extract it from agricultural waste like rice straw and palm residues, Mekky argued that UCO is far more cost-effective. “The most important thing is securing the feedstock—and we’ve got more than we need.”
Honeywell has developed more than 27 SAF plants worldwide, many of which are still under construction, he added.
Foreign investment eyes Egypt's clean fuel pivot
According to Mekky, the project has drawn strong interest from foreign investors, who see Egypt not just as a market—but a regional supplier.
The company’s upcoming general assembly will announce new partners, including South Korea’s GS, with other applications under review, such as energy group OAPEC. “There’s a lot of appetite from investors to join,” he said.
ESAF aims to fully meet EgyptAir’s future SAF demand and export surplus volumes abroad. “We’ve developed a strategy with the Ministry of Petroleum to produce up to 1 million tons of SAF by 2050,” Mekky said. “Egypt will become a Middle East hub for clean jet fuel.”
The European Bank for Reconstruction and Development backed the early phase with a $100 million feasibility study and grant, and is expected to lead fundraising for the remaining $570 million needed.
An EBRD delegation is expected in Egypt this week to finalize the financing agreement.
