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Financing deal signed for Egyptian biofuels facility

5 May 2026

A financing deal has been signed for a planned biofuels facility to be developed at the Suez Canal Economic Zone in the Egyptian town of Ain Sokhna.

Several regional companies are involved in the project, including Qatari conglomerate Al-Mana Holding and Vision Invest, a Saudi Arabian infrastructure investor and developer.

The Arab Energy Fund, a multilateral impact financial institution, acted as the global structuring bank and co-mandated lead arranger for the financing deal, and is also the project’s largest lender.

Under current plans, the facility will be constructed on a 100,000-square-metre site and is expected to produce up to 200,000 tonnes a year of biofuels, including sustainable aviation fuel (SAF) and hydrotreated vegetable oil, as well as biopropane and bionaphtha.

Commercial operations are scheduled to start by the end of next year.

In a statement, Green Sky Capital, one of the signatories to the financing deal, said that the project reinforces the region’s role in global energy transition value chains.

A long-term offtake deal has been agreed with the London-headquartered oil and gas company Shell.

Green Sky Capital has also entered into a technology agreement with France’s Axens and an engineering procurement and construction contract with Paris-headquartered SeaOwl.

The investment firm Rothschild & Co acted as financial adviser to Green Sky Capital on the transaction.

Ali Shaikh, chief executive of Green Sky Capital, said: “The signing of this financing marks a defining step in the development of our SAF platform and underscores the strategic importance of this project for the region.”

In December last year, the Suez Canal Economic Zone Authority signed a preliminary deal with Al-Mana Holding relating to the biofuels facility.

In a statement released last year, Egypt’s cabinet said the project would be implemented in three phases, with a $200m investment covering the first phase.

The planned facility forms part of Egypt’s broader strategy to reduce reliance on traditional fuels, enabling the country to export more of the hydrocarbons it produces.

MEED’s March 2026 report on Egypt includes:

> COMMENT: Egypt’s crisis mode gives way to cautious revival
> GOVERNMENT: Egypt adapts its foreign policy approach
> ECONOMY & BANKING: Egypt nears return to economic stability
> OIL & GAS: Egypt’s oil and gas sector shows bright spots
> POWER & WATER: Egypt utility contracts hit $5bn decade peak
> CONSTRUCTION: Coastal destinations are a boon to Egyptian construction

To see previous issues of MEED Business Review, please click here
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Wil Crisp

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