Egypt advances $278 million bioethanol project with Italian firms

Egypt is advancing a major bioethanol production project estimated at approximately $278 million. The initiative aims to convert sugarcane bagasse, a byproduct of sugar manufacturing, into second-generation bioethanol to support the nation’s green economy and reduce carbon emissions.

To implement the project, the Egyptian Ministry of Supply and Internal Trade is working to establish a joint entity comprising the state-run Sugar and Integrated Industries Company, Proger Egypt, and Drexel. This new body will finalize feasibility studies, manage investor communications, and oversee the transition to the execution phase.

The project’s economic viability is supported by a 10-year agreement between Proger Egypt and Ecofuel, a subsidiary of the Italian group Eni, to purchase the ethanol produced. A significant portion of the output is intended for export to European markets. The Sugar and Integrated Industries Company is providing the necessary land and raw materials, while also preparing infrastructure such as natural gas connections.