Shell secures exclusive SAF offtake from Green Sky Manara in Morocco

Shell has officially signed a comprehensive, long-term offtake agreement for sustainable aviation fuel (SAF). This significant agreement was established with Green Sky Manara LLC, which operates as a direct subsidiary of the parent company, Green Sky Capital. The arrangement is directly linked to a planned HEFA production facility that is currently slated for development at Port Nador, situated in Morocco.

According to the outlined project timeline, the Port Nador facility is expected to officially commence operations in October of the year 2028. Once it is fully operational, the facility could produce a substantial output of approximately 150,000 tonnes a year of sustainable aviation fuel, or it could produce an equivalent volume of HVO. In addition to these primary fuel volumes, the facility is also designed to yield further resources in the form of bionaphtha and biopropane. Under the specific terms established in the agreement, Shell would secure its position as the exclusive offtaker from the Port Nador facility, guaranteeing a dedicated supply line.

This latest agreement follows an earlier long-term arrangement of a similar nature. That previous arrangement is linked to another planned HEFA facility, which is currently being developed by Green Sky Capital and is located in Egypt. This Egyptian facility is also expected to be a major contributor, providing up to 145,000 tonnes a year of sustainable aviation fuel. The supply from the facility in Egypt is expected to become available from the end of 2027.

Together, these respective agreements form a vital part of Shell's broader and highly extensive portfolio of sustainable aviation fuel supply. This growing portfolio actively includes a variety of offtake arrangements originating from production plants located in diverse markets such as Pakistan, Malaysia, Thailand, and the United States. By securing these global sources, the company is firmly connecting emerging supply locations with its ever-present customer demand.

As a leading aviation fuel supplier in the industry, Shell helps to physically and commercially connect producers, necessary infrastructure, and its customers. The company manages this integration through its established trading, logistics, blending, and distribution network. By focusing on integrating sustainable aviation fuel directly into the existing aviation fuel system, the company notes that it helps its customers to safely access available supply continuously through established airport infrastructure.

On a global scale, Shell currently operates as one of the world’s largest sustainable aviation fuel traders and suppliers. The business is currently offering sustainable aviation fuel to customers at more than 80 separate airports spread across 18 different countries.

The company maintains that securing long-term agreements with fuel producers, together with cultivating strong customer relationships and executing targeted investments across the entire supply chain, heavily helps to strengthen its overall ability to meet the constantly growing demand. Concluding on the overarching purpose of the deal, it is noted that this Moroccan agreement is considered another essential step in the process of building the resilient supply chains and the operational capabilities that are needed to make sustainable aviation fuel significantly more accessible to its customers.

This article was first published in The STAT Trade Times