Shell signs long‑term offtake for up to 75% of Morocco’s new SAF plant output
Shell Trading Rotterdam entered an exclusive offtake agreement with Green Sky Manara for a plant at Morocco’s Nador West Med port. The deal covers up to 150,000 tonnes of sustainable aviation fuel (or an equivalent volume of hydrotreated vegetable oil) and also includes bionaphtha and biopropane. The plant, backed by Qatari investors, is slated to start operating in October 2028 and will have a total investment of about $239‑$240 million. Shell’s executive Richard Jory said the contract supports the company’s strategy to provide low‑carbon fuels to airlines.
Why it matters
The agreement gives the project a guaranteed buyer, which should help secure financing and move the plant toward construction. Investors in Shell (ticker SHEL) may view the contract as a step toward expanding the company’s SAF supply chain, while the Moroccan project could open a new market for low‑carbon aviation fuel in North Africa.
Key facts
- 1Shell will purchase up to 150,000 tonnes of SAF (or an equivalent volume of hydrotreated vegetable oil) each year from the plant. africa.businessinsider.com
- 2The offtake also includes bionaphtha and biopropane produced at the facility. africa.businessinsider.com
- 3The plant is designed to produce up to 200,000 tonnes of SAF annually, with Shell’s contract covering as much as 75% of that capacity. africa.businessinsider.com
- 4The project’s total cost is listed as $239 million (approximately $240 million). africasustainabilitymatters.com
- 5Financing under review includes a senior secured loan of up to $135 million, comprising an $85 million committed tranche and a $50 million uncommitted tranche. africa.businessinsider.com
- 6The plant is expected to start operating in October 2028. africa.businessinsider.com
Summary written by AlphAI AI Desk from 2 of 2 sources. Not investment advice. Figures are as stated by the linked sources.