EAAIF backs Africa’s first sustainable aviation fuel plant

Africa’s first privately-financed sustainable aviation fuel (SAF) plant has secured funding from the Emerging Africa & Asia Infrastructure Fund (EAAIF) and various Middle Eastern investors

The deal expands EAAIF’s footprint into the Middle East North Africa (MENA) region, following its ongoing expansion into Asia.

The US$212mn clean fuels project, located in Egypt’s Sokhna Special Economic Zone, will be owned and operated by Green Sky Capital Limited together with its local subsidiary, SAF Fly Egypt.

EAAIF, a Private Infrastructure Development Group (PIDG) company managed by Ninety One, supported a senior secured loan of US$40mn for the development of the plant.

The transaction marks the first project-financed SAF plant in the MENA region.

The facility is designed to produce 200,000 tonnes per annum of biofuels, including SAF, Hydrotreated Vegetable Oil (HVO), bio-propane and bio-naphtha and will utilise commercially proven Hydroprocessed Esters and Fatty Acids (HEFA) technology to convert waste-based feedstock into high-grade sustainable fuel.

To ensure long-term bankability, the transaction will be anchored by Shell who will purchase the facility’s products on a take-or-pay basis and act as its primary feedstock provider.

Martijn Proos, co-head of emerging market alternative credit, Ninety One, the fund manager of EAAIF, said the transaction arrives at a critical juncture for the global energy market.

“Amid heightened geopolitical volatility and energy market uncertainty, this first-of-its-kind facility provides a practical solution to advancing both decarbonisation and energy security,”he said.

“By acting as the global mandated leadarranger, Ninety One and EAAIF are demonstrating how institutional capital can be mobilised to support the decarbonisation of hard-to-abate sectors like aviation, which is projected to account for 5% of global emissions by 2050 without intervention.”

The project is being developed with the support of regional sponsors, including Al Mana Holding, a Qatari diversified conglomerate, and Vision Invest, a Saudi Arabian infrastructure investor and developer.

Ninety One acted as the global mandated lead arranger and coordinating lender, facilitating the mobilisation of a total debt package of US$142.9mn with a US$40 million commitment from EAAIF and Ninety One’s Emerging Markets Transition Debt (EMTD) Fund.

Ninety One has also mobilised the participation of Qatar National Bank (QNB) via its Egyptian subsidiary, QNB S.A.E, with a commitment of up to US$31.4mn.

The debt financing was completed by The Arab Energy Fund, which acted as co-MLA and global structuring lender committed US$71.4mn to the project.

SAF is estimated to offer up to an 80% reduction in CO₂ emissions, compared to conventional jet fuel, supporting the aviation industry’s target of reaching net-zero by 2050.

The project's strategic location near the Suez Canal offers a direct export route to key demand centres in the EU and UK, which are currently implementing strict SAF mandates.

The transaction also demonstrates strong appetite among regional and international lenders for renewable fuels infrastructure, supporting both energy security and price stability amid heightened global volatility.

“Emerging markets have been transitioning toward renewables and cleaner energy sources for some time, driven by rising energy costs and the need to strengthen energy security,” said Alper Kilic, head of alternative credit, Ninety One.

“This investment highlights the critical role long-term capital plays in scaling next-generation energy infrastructure in emerging markets.”

He added that sustainable aviation fuel is “one of the most compelling – and challenging – decarbonisation pathways” requiring proven technology and strong commercial structures to deliver at scale.

“This project demonstrates how institutional investors can pursue attractive risk-adjusted returns while supporting the real-economy transition, and underscores the growing opportunity for transition debt strategies to finance high-impact assets in hard-to-abate sectors.”

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