Morocco’s proposed $239m sustainable aviation fuel plant would need to import most of its raw materials, raising questions about supply costs and how much value the country could retain from an industry it hopes to develop.
The Gulf-backed project, planned for Nador West Med on Morocco’s Mediterranean coast, could produce cleaner jet fuel for international markets. However, an environmental assessment published by the EBRD shows that imports would supply 60 percent of its waste-derived raw materials.
Waste oils will arrive from abroad
Green Sky Capital estimates it would need about 200,000 tonnes of waste-derived oils and fats annually. According to its interim assessment, 40 percent would be used cooking oil collected in Morocco, 30 percent imported used cooking oil and the remaining 30 percent imported soap-stock acid oil, a residue from vegetable-oil refining.
That would create an opening for local collectors, transport companies and small suppliers. It would also leave the plant exposed to international feedstock prices, shipping costs and the need to demonstrate that its imported materials genuinely meet sustainability standards.
The developer also proposes training for local waste-oil collectors, including women-led cooperatives. The assessment estimates about 400 jobs at peak construction and an operating workforce of 162, although those figures remain projections.
Why the Gulf-backed developer chose Morocco
Green Sky Capital lists Green Sky Capital Management, Qatar’s Al Mana Holding and Saudi Arabia’s Vision Invest among its shareholders, according to the EBRD. Its choice of Nador reflects Morocco’s growing industrial base and access to shipping routes, advantages also highlighted by the country’s rise as an African industrial investment centre.
Europe provides a potential market. Under the EU’s ReFuelEU Aviation rules, suppliers must blend increasing amounts of sustainable aviation fuel into the jet fuel sold at EU airports, from 2 percent in 2025 to 6 percent by 2030.
Morocco would not be alone in pursuing that opportunity. South Africa is advancing a separate $2.6bn aviation fuel project, underlining the competition to establish African production capacity for lower-carbon aviation.
Cleaner fuel still needs natural gas
The proposed facility would turn waste oils into aviation fuel using a process that treats them with hydrogen. The hydrogen, however, would be produced on site using natural gas and steam, while electricity would come from Morocco’s national grid.
That does not make the project equivalent to conventional fossil jet fuel. It does mean that its climate benefits must be judged across the full production and transport chain, rather than by the waste-oil label alone. The environmental assessment is still being completed.
A $239m plan, not a completed investment
The EBRD’s project disclosure puts the total cost at $239m and outlines a proposed loan of up to $105m, split into an $85m tranche and a further $20m uncommitted tranche. The bank describes the proposal as exploratory and pending final review; the financing has not yet been signed.
There is also a difference in the published production estimates. The EBRD describes potential output of up to 200,000 tonnes of sustainable aviation fuel annually, while the interim environmental assessment puts it at approximately 176,000 tonnes. That is separate from the 200,000-tonne feedstock requirement; the documents do not explain the difference between the output estimates.
As Africa’s stalled green hydrogen plans illustrate, attracting investor interest is only the beginning. Green Sky Capital still needs to finalise its financing, clear environmental requirements and secure reliable feedstock supplies.
If those pieces fall into place, Nador could help Morocco enter a fast-growing aviation fuel market. The harder test will be whether a plant built largely around imported waste can also build a lasting Moroccan supply chain.
