Egypt's Bioethanol Project Revitalizes with New Deal

Bioethanol production

 

Egypt's Bioethanol Project Revitalizes with New Deal

Egypt's bioethanol production project is moving forward with the start of construction, a step that will fulfill Cairo's ambitions and support global efforts to reduce emissions and transition to green fuels.

On Thursday, September 25, 2025, the Egyptian Bioethanol Company signed an early works contract with China's TCC, the general contractor for the bioethanol project, one of the Egyptian Petrochemicals Holding Company's projects. This agreement ensures the project is implemented on schedule.

This follows the company's success in obtaining the necessary approvals for the project and completing most of the infrastructure works, including natural gas facilities, operating and potable water, and sewage networks, in addition to the product export lines from the project site to the Damietta Port dock. The bioethanol production project in Egypt is a value-added green economy project that helps reduce carbon emissions. It aims to produce 100,000 tons of bioethanol annually, which is used in blending with gasoline to reduce emissions.

Bioethanol Production Goals

The bioethanol production project in Egypt uses molasses from sugar factories to produce 100,000 tons of bioethanol annually. The project is expected to contribute to reducing carbon dioxide emissions by up to 300,000 tons annually, with an investment cost estimated at $170 million. The project is one of Egypt's green petrochemical projects aimed at achieving sustainable development goals and reducing carbon emissions.

Egypt is implementing several green projects, including the Wood Technology Company (MDF) project, which aims to produce 205,000 cubic meters of medium-density fiberboard (MDF) annually using 250,000 tons of rice straw. The project contributes to meeting local market needs and reducing dependence on imports, in addition to reducing carbon dioxide emissions by approximately 360,000 tons annually, which helps reduce environmental pollution resulting from burning rice straw.

Green Ammonia

The Damietta Green Ammonia Company was established to produce 150,000 tons of green ammonia annually. The project includes solar power plants (160 MW) and wind power plants (340 MW), a green hydrogen analyzer (240 MW), and a seawater desalination plant. The project's investment cost is approximately $910 million, and it aims to export its production through Port Said. In addition to this project, the Sustainable Jet Fuel Project stands out among green petrochemical projects in Egypt, aiming to produce 120,000 tons of sustainable jet fuel annually using recycled cooking oil.

The project supports compliance with international regulations requiring a gradual increase in the proportion of sustainable jet fuel in the global mix. The estimated cost is $537 million and is scheduled to be implemented in Alexandria Governorate. These projects are part of the state's strategy to promote the transition to green energy, placing Egypt at the forefront of countries committed to international environmental standards and contributing to sustainable economic growth.