Egypt signs first license agreement to build sustainable aviation fuel plant in Alexandria

Ahram Online , Thursday 4 Dec 2025

Minister of Petroleum and Mineral Resources Karim Badawi witnessed on Tuesday the signing of the country’s first production license agreement for a Sustainable Aviation Fuel (SAF) project, marking a significant step in Egypt’s drive toward transitioning to green energy and emissions reduction.

Ministry
Members of Egyptian Petrochemicals Holding Company (ECHEM) and Honeywell UOP pose for an image after the signing of the agreement in the presence of Egyptian Minister of Petroleum and Mineral Resources Karim Badawi (C). Photo courtesy of Egyptian Ministry of Petroleum.

 

The agreement was signed between the Egyptian Petrochemicals Holding Company (ECHEM), represented by the Egyptian Company for Sustainable Aviation Fuel (ESAF), and Honeywell UOP.

The ceremony was attended by ECHEM Chairman Ibrahim Mekki and Khaled Hashem, Honeywell’s president and CEO for the Middle East and Africa.

ESAF Chairman Tamer Heikal and Matt Spalding, vice president and general manager for Energy and Sustainable Solutions at Honeywell for Asia-Pacific, the Middle East, and North Africa, signed the contract in the presence of senior officials from ECHEM, ESAF, and Honeywell.

Badawi said the project is the first of its kind in Egypt and represents a new step for the petroleum sector in supporting the state’s transition to green energy.

The facility, which will be established in Alexandria, will convert used cooking oil into aviation fuel with an annual production capacity of up to 120,000 tons, he added.

According to the minister, the project is expected to reduce around 400,000 tons of carbon dioxide emissions per year and is considered a priority investment due to its significant economic and environmental returns.

Honeywell’s Hashem said the company is proud of its strategic partnership with the Ministry of Petroleum and ECHEM, noting that the cooperation reflects mutual trust and a shared commitment to adopting advanced low-carbon technologies.

He affirmed Honeywell’s readiness to provide its global expertise to support Egypt’s SAF production in line with international aviation standards.

Honeywell UOP’s technology is among the leading global platforms for producing sustainable aviation fuel from waste oils, including used cooking oil.

The process achieves conversion rates of up to 80 percent through advanced hydrotreating, ensuring aviation-grade fuel that meets international specifications while contributing to significant emissions reduction.

Short link: