Shell has agreed to buy around 150,000t a year of sustainable aviation fuel (SAF) from a planned $239m production facility in northern Morocco. The agreement allows Shell to purchase the contracted volume as SAF, renewable diesel or a combination of both.
image: Shell
The long-term offtake agreement with Green Sky Manara, a subsidiary of Green Sky Capital, gives Shell exclusive purchasing rights to the fuel from the proposed plant at the Nador West Med port complex.
The contracted volume represents approximately three-quarters of the facility’s planned maximum annual SAF production capacity of 200,000t. The agreement allows for the allocation to include other renewable fuel products expected to be produced at the site.
The plant is expected to begin operating in October 2028, subject to financing, construction and commissioning. It is being developed by Green Sky Capital, backed by Qatari and Saudi investors, and will use technology supplied by French company Axens.
The facility is designed to process waste-derived oils and fats, including used cooking oil and animal fats, into SAF and other renewable fuels.
The European Bank for Reconstruction and Development (EBRD) is considering a loan of up to $135m to support construction and commissioning. The proposed financing includes an $85m committed tranche and a further $50m that remains uncommitted. A final decision is expected later this year.
The project is expected to cost approximately $239m, with construction scheduled to take around 22 months. The developer is targeting an October 2028 start-up, with the facility expected to employ around 162 people once operational and up to 400 during construction.
The agreement gives the planned plant a major prospective customer before construction is complete, although the companies have not disclosed the purchase price, contract duration or whether the deal includes minimum purchase obligations.
The Nador project is part of Shell’s efforts to expand its supply of lower-carbon fuels as airlines and fuel suppliers prepare for growing demand for SAF. European Union rules require aviation fuel suppliers at EU airports to provide a minimum 2% share of SAF from 2025, rising to 6% in 2030.
The plant is intended to supply export markets through the Nador West Med port complex. Its development remains subject to financing, environmental approvals and construction, and the planned start-up date has not yet been confirmed.
Earlier this year, Shell committed to buying the entire output of a $212.4m facility at Ain Sokhna in Egypt, also being developed by Green Sky Capital. The plant could produce up to 145,000t of SAF annually by the end of 2027.