The risk of a shortage of aviation fuel due to the Strait of Hormuz blockade has made the search for alternative sources a critical issue for airlines.
High fuel prices and pending scarcity means some carriers have canceled flights and at least one, Spirit Airlines in the US, has closed down. One possible long-term answer is sustainable aviation fuel, which, because it is typically made from waste oils, biomass, or other renewable sources, is not as dependent on Middle East energy flows.
Qatar’s largest bank, QNB Group, is the latest to step into the sector, by lending to an SAF plant being developed in Egypt. Last week its local subsidiary, QNB Egypt, agreed to help finance the project. The plant should be up and running next year, and will be able to produce some 200,000 tonnes of biofuel a year — equal to around 10% of current global SAF supply. Energy giant Shell has signed up to buy the entire output of the plant, which is being developed by Doha-based Green Sky Capital.
