LONDON, November 2, 2026 — Shell has signed a long-term agreement to purchase sustainable aviation fuel from a planned production facility in Morocco, expanding its low-carbon fuel supply network as airlines face growing pressure to reduce emissions and secure alternative energy sources.
Shell Trading Rotterdam, a subsidiary of the London-listed energy group, said on Monday that it had reached an exclusive offtake agreement with Green Sky Manara for approximately 150,000 tonnes a year of sustainable aviation fuel (SAF), or an equivalent volume of hydrotreated vegetable oil (HVO), from a proposed plant at Port Nador.
The agreement also covers bionaphtha and biopropane produced at the facility, which is scheduled to begin operations in October 2028.
The arrangement marks another step in Shell’s efforts to secure long-term supplies of lower-carbon fuels while supporting the development of production capacity in North Africa.
It also positions Morocco as a potential supplier to international aviation fuel markets, building on the country’s growing interest in alternative energy production and industrial development.
Richard Jory, executive vice-president of products trading at Shell, said the agreement would help the company strengthen its supply network and meet demand from customers seeking lower-carbon fuels.
“This agreement supports Shell’s strategy by helping customers access low-carbon fuels such as sustainable aviation fuel while building resilient and commercially viable supply chains,” Jory said.
SAF is considered one of the principal near-term options available to the aviation industry for reducing lifecycle greenhouse gas emissions, particularly because it can be blended with conventional jet fuel and used in existing aircraft under approved specifications.
However, production remains limited relative to global aviation fuel consumption, while higher costs and the availability of suitable raw materials continue to constrain expansion.
The Moroccan project is expected to use feedstocks including used cooking oil, animal fats, vegetable oils and other lipid-based materials.
The production process will use hydroprocessed esters and fatty acids (HEFA) technology, which converts oils and fats into renewable fuels suitable for aviation and other transport applications.
Under the agreement, the SAF supplied to Shell must meet ASTM D7566 aviation fuel specifications and be accompanied by sustainability documentation issued under a European Commission-approved certification scheme, such as ISCC EU.
The certification requirements are intended to establish the sustainability credentials of the feedstocks and production processes used.
Shell cautioned that SAF is not emissions-free and that its lifecycle emissions depend on the raw materials and production methods involved.
The company did not disclose the financial value of the agreement, the duration of the offtake commitment or the investment required to construct the Moroccan facility.
It also did not specify whether the plant has secured all necessary financing and regulatory approvals ahead of its planned 2028 start-up.
The agreement follows an earlier long-term arrangement involving Green Sky Capital, an affiliate of Green Sky Manara, for a separate SAF production project in Egypt.
The Egyptian facility, also based on HEFA technology, is expected to produce up to 145,000 tonnes of sustainable aviation fuel annually from the end of 2027.
Together, the two proposed North African projects could provide up to 295,000 tonnes of annual SAF production capacity, assuming both facilities are completed on schedule and the Moroccan plant’s contracted output is supplied as aviation fuel rather than HVO.
The projects could strengthen North Africa’s position in the international market for renewable transport fuels, particularly as airlines and fuel suppliers seek to diversify sourcing arrangements.
Shell has also entered into SAF offtake agreements linked to production facilities in Pakistan, Malaysia, Thailand and the United States.
The company said these arrangements form part of a wider strategy to connect feedstock suppliers, fuel producers, logistics infrastructure and aviation customers through its global trading network.
Shell is among the world’s largest SAF traders and suppliers, with the fuel available through its operations at more than 80 airports across 18 countries.
Long-term offtake agreements can provide developers of new fuel facilities with greater certainty over future demand, potentially supporting project financing and investment decisions.
For buyers, such agreements can help secure future supply in a market where production capacity is still developing and competition for certified low-carbon fuels is expected to increase.
The Moroccan agreement comes as aviation operators face mounting pressure to reduce emissions while continuing to rely heavily on liquid fuels.
Unlike road transport, where electrification is expanding, commercial aviation has fewer readily available alternatives to conventional jet fuel, particularly for long-haul operations.
SAF can reduce lifecycle emissions compared with fossil-based aviation fuel, depending on its feedstock and production pathway, but it does not eliminate emissions from aircraft operations.
Its commercial expansion also depends on access to sustainable feedstocks, investment in refining capacity and the development of reliable distribution networks.
For Morocco, the planned Port Nador facility represents an opportunity to participate in the production and export of higher-value renewable fuels, potentially adding a new industrial activity to the country’s energy sector.
The project could also create demand for feedstock collection, processing, storage and logistics services, although its local economic impact will depend on sourcing arrangements and the extent of domestic participation in the supply chain.
The availability and sustainability of feedstocks will be particularly important to the project’s commercial prospects, given growing international competition for waste oils, animal fats and other materials used in HEFA-based fuel production.
Shell’s decision to secure exclusive offtake rights before the facility enters operation reflects the importance of establishing future supply arrangements in the developing SAF market.
Nevertheless, the planned production volumes remain subject to project execution risks, including construction schedules, financing, feedstock availability and regulatory requirements.
The agreement does not represent an operational supply commitment until the Moroccan facility is completed and begins producing qualifying fuels.
If delivered on schedule, the Port Nador plant would provide Shell with an additional source of renewable aviation fuel from 2028, while expanding North Africa’s participation in international low-carbon fuel supply chains.
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