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Global law firm Clifford Chance has advised the lenders on the financing of Egypt's inaugural sustainable aviation fuel (SAF) production facility, marking the development of the first project-financed SAF plant across Africa and the Middle East.
The project carries a total value of $212.4 million (£181 million), supported by a $142.9 million (£122 million) debt package. Financing was arranged by a consortium of lenders comprising The Arab Energy Fund (TAEF), Qatar National Bank (QNB), The Emerging Africa and Asia Infrastructure Fund, and the Emerging Markets Transition Debt Fund—both latter vehicles managed by Ninety One.
Under a long-term take-or-pay offtake agreement, Shell will serve as the plant's primary feedstock provider and sole offtaker, a structure that underpins the project's long-term commercial viability. French technology provider Axens will supply its proprietary processing technology for the facility.
Located in the Sokhna Special Economic Zone in Egypt, the project is being developed under the sponsorship of Green Sky Capital Management, Al Mana Holding, and Vision Invest.
Once operational, the facility is designed to produce 200,000 tonnes per annum of biofuels, including SAF and other green products. It will utilize Hydroprocessed Esters and Fatty Acids (HEFA) technology to convert waste-based feedstock into high-grade sustainable fuel.
Nicholas Wong, partner at Clifford Chance, 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 at Clifford Chance, 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.'
Source: Biofuels International Magazine