Airlines looking to reduce their carbon emissions could soon have a new source of cleaner fuel in northern Morocco, after Shell agreed to buy most of the planned output from a $239m biofuel plant near Nador. Shell has signed a long-term supply agreement with Green Sky Manara, securing exclusive rights to buy an estimated 150,000 tonnes of sustainable aviation fuel (SAF) a year from the future plant.
The agreement was announced on Monday, 2 November. It also gives Shell the option to replace the agreed volumes with an equivalent amount of hydrotreated vegetable oil (HVO), a renewable fuel used as an alternative to conventional diesel.
The plant is being built in the Betoya industrial and logistics zone, within the Nador West Med port complex. Production is expected to start in October 2028.
Qatari investors are backing the $239m project through Green Sky Capital Management and the Al Mana conglomerate.
The facility is designed to produce up to 200,000 tonnes of fuel a year. Shell’s agreement therefore covers about three-quarters of its planned maximum output, giving the plant a major buyer before production begins.
The factory will also produce renewable diesel, bionaphtha and biopropane. It will use an advanced second-generation process that turns waste materials into lower-carbon fuels.
Its location at Nador West Med will give the plant direct access to maritime export routes, including routes to European markets. Demand for sustainable aviation fuel is expected to grow as European rules require airlines to use more lower-carbon fuels.
The project is expected to create about 400 jobs during construction. Once operational, it will employ 162 permanent staff.
The European Bank for Reconstruction and Development (EBRD) is also considering a $105m loan to help finance construction. Its board is scheduled to make a final decision on the funding on 18 November 2026.
Shell’s long-term purchase agreement gives the project a major customer before that decision. It also provides lenders with greater certainty about future sales, although the EBRD loan still requires approval.
