SAF production in Egypt is getting a boost: The Egyptian Company for Solid Waste Recycling (ECARU), Qalaa Holdings, and France’s Axens signed a cooperation protocol to conduct technical and economic studies for second-generation biofuel and sustainable aviation fuel (SAF) production project, according to a statement (pdf).

What we know: The studies will be carried out in seven months, the statement notes. The project will be implemented in two phases, with the first focusing on the production of the advanced bioethanol and the second phase focusing on the production of SAF, it added. with potential for exports of the second-generation biofuel at a later stage.

Qalaa and ECARU have history: Qalaa Holdings invests in ECARU through its subsidiary Tawazon under efforts to provide practical solutions for cleaner energy resulting from converted biomass. It has contributed in the disposal and recycling of 3.5 mn tons of agricultural waste for further use over the past 15 years, according to the statement.

Egypt could be well-positioned on the SAF map: The US private sector is looking to tap Egypt for SAF production, Regional Minister Counselor for Commercial Affairs Keith Kirkham said at an event attended by Enterprise Climate last month. US companies are currently exploring cooperation pathways with both the private and public sectors of Egypt to jointly produce SAFs, he noted. “We think there is potential for Egypt to develop as a potential producer of SAFs given the EU conditions that require air carriers to use sustainable aviation fuels even when transiting,” he told Enterprise Climate at the time. “Egypt, rather than being a buyer, could be a seller of this, which would have an obvious export earning potential,” he added.

But there could be challenges both at home and abroad: Technology, infrastructure, and high costs are among some of the challenges currently obstructing the growth of the sector locally, according to statements by the Director of Fuel and Emission at EgyptAir Ahmed Mattar. The climate-friendly branded SAFs are also more expensive and their adoption has been stagnant. Their cost is 3-4x more expensive than kerosene, making their use less price competitive and thereby decreasing their production — which was estimated to have reached 0.1% of global jet fuel consumption, according to Bloomberg.