The European Bank for Reconstruction and Development is considering financing of up to US$105 million for a sustainable aviation fuel production facility planned for Nador West Med Port in Morocco.
The proposed financing would be provided to Green Sky Capital for the construction and commissioning of a plant designed to produce up to 200,000 tonnes of sustainable aviation fuel a year.
The EBRD project is listed as “In Exploratory, Pending Final Review”, with an approval date of 18 November 2026. The project summary document was disclosed on 14 October 2026.
The proposed senior secured loan comprises a US$85 million committed tranche and a US$20 million uncommitted tranche. Of the total loan amount, up to US$20 million is expected to be funded by the Green Climate Fund under its High Impact Programme for the Corporate Sector.
The project has a total estimated cost of US$239 million.
According to the EBRD, the facility is expected to become one of the first commercial-scale sustainable aviation fuel production plants in Morocco and North Africa.
It is designed to use Axens’ licensed Vegan hydroprocessed esters and fatty acids technology, known as HEFA, to convert waste-based feedstocks into aviation fuel. The EBRD describes HEFA as the most mature and commercially proven technology currently available for sustainable aviation fuel production.
The resulting fuel is intended to be fully compatible with existing aircraft engines and airport infrastructure and to meet the sustainability criteria of the European Union’s Renewable Energy Directive.
The facility would be constructed on approximately 88,000 square metres of industrial land within the Betoya Industrial and Logistic Zone at Nador West Med in north-eastern Morocco.
The planned installation includes a feedstock pre-treatment unit, HEFA processing unit, hydrogen production unit and storage facilities.
Waste oils, greases and fats would be used as raw feedstocks and sourced through a nationwide collection network, with imports supplementing domestic supplies when required. In addition to sustainable aviation fuel, the plant is planned to produce renewable diesel, bionaphtha and biopropane.
The EBRD said the project is supported by a long-term offtake agreement with a private-sector counterparty.
The proposed transaction is also expected to benefit from first-loss risk cover provided by the European Union under the EFSD+ Guarantee Agreement HI-BAR. The programme supports investment in next-generation climate mitigation technologies and green industrial transformation, including sustainable aviation fuels, renewable hydrogen and sustainable biofuels.
Environmental and social due diligence remains under way. A Moroccan Environmental Impact Assessment is required, while Green Sky Capital has appointed a consultant to prepare an Environmental and Social Impact Assessment covering local requirements and the EBRD’s environmental and social standards.
Baseline assessments are in progress, together with air-dispersion and noise modelling, traffic and cumulative-impact assessments and stakeholder engagement.
The EBRD said no resettlement or impacts on sensitive biodiversity receptors are expected as a result of the project.
The development is also expected to include training initiatives for its technical workforce. These comprise an internal operator and technician academy, a dual apprenticeship programme for maintenance and instrumentation technicians and a graduate engineer traineeship in partnership with local education providers in Morocco’s Oriental Region.
Green Sky Capital is a clean-energy project developer focused on developing, financing and operating sustainable aviation fuel projects in emerging markets. Its shareholders are Green Sky Capital Management, Al Mana Holding and Vision Invest.
