Shell Secures Long-Term Supply Deal for Morocco’s Future Sustainable Fuels
Shell has secured a significant portion of Morocco’s future sustainable fuel production. On November 2, 2026, the energy major signed a long-term offtake agreement with Green Sky Manara LLC to source fuels from a planned biofuel plant located within the Nador West Med industrial and port complex.
The contract covers approximately 150,000 tonnes per year of Sustainable Aviation Fuel (SAF) or an equivalent volume of Renewable Diesel (HVO). It also includes two by-products: bio-naphtha and bio-propane.
Exclusive Offtake Rights and Financial Implications
The agreement grants Shell exclusive purchase rights to these volumes. For Green Sky Capital, the project developer, this commercial commitment represents a crucial market outlet even before the plant begins operations. It provides visibility into the commercialization of a portion of future production and serves as a key structural element for financing this industrial infrastructure.
The facility will be situated on a site of approximately 88,000 square meters in the Bétoya industrial and logistics zone within Nador West Med. According to documents from the European Bank for Reconstruction and Development (EBRD), the total estimated cost of the project is $239 million. The planned production capacity can reach up to 200,000 tonnes of Sustainable Aviation Fuel per year, with commissioning scheduled for October 2028.
Technology and Feedstock Strategy
The project relies on the valorization of residual feedstocks. The plant will primarily utilize used cooking oils, fats, and other recovered fatty materials. Green Sky Capital plans to establish a national collection network, supplemented by imports when domestic resources in Morocco are insufficient to feed the installation.
The conversion process will utilize HEFA (Hydroprocessed Esters and Fatty Acids) technology, which converts oils and fats into fuels through hydrogen treatment. The facility will include:
- A feedstock pretreatment unit
- A fuel production unit
- Hydrogen production equipment
- Storage capacities
Beyond aviation fuel, the site will also produce renewable diesel, bio-naphtha, and bio-propane. This diversification allows for the valorization of multiple fractions resulting from the industrial process.
Financing Structure
The financial arrangement is another major challenge. The EBRD is considering a loan of up to $135 million to Green Sky Capital. This envelope includes an engaged tranche of $85 million and an additional unengaged tranche of $50 million. Up to $20 million could potentially come from the Green Climate Fund (GCF).
However, the file remains at the exploratory stage, pending final review. Therefore, the financing should not yet be presented as definitively granted. The project must also continue its environmental and technical procedures before realization.
Market Context: EU SAF Mandates
The project timeline aligns with the growing market for Sustainable Aviation Fuels. The European Union is progressively imposing minimum SAF blending obligations on fuel suppliers for volumes destined for aircraft operating in its airports. This mandate is set at 2% since 2025, will rise to 6% by 2030, and is expected to reach 70% by 2050.
