Shell has agreed to buy output from a planned renewable fuel plant in Nador, in a deal that underscores Morocco’s growing pull for energy-transition investment.
The British oil major will purchase roughly 150,000 tonnes a year of sustainable aviation fuel (SAF) or renewable diesel (HVO), along with volumes of bio-naphtha and bio-propane, from the facility being developed by Green Sky Capital. The plant is expected to come online in October 2028.
Offtake agreements of this kind are often the deciding factor in getting an industrial project financed. By locking in a buyer years ahead of production, developers give lenders the assurance that the output will actually be sold once the plant is running, a key test for any large-scale green fuel venture still on paper.
That financing is already taking shape. The European Bank for Reconstruction and Development (EBRD) is reportedly considering a loan of up to 135 million dollars for the Nador project, with a board decision expected on December 2, 2026.
The arrangement echoes a similar deal Shell struck in Egypt, where another renewable fuel plant is being built to supply the company’s regional distribution network, suggesting the British firm sees North Africa as a strategic hub for low-carbon fuel sourcing.
For Morocco, the deal fits into a wider push to diversify its energy mix and climb the industrial value chain. The eastern Oriental region, where Nador sits, has spent several years courting green energy and hydrogen investors, building on major port and logistics projects already under way nearby.
If the timeline holds, the plant would start operating into a sustainable aviation fuel market that is expanding quickly, driven largely by European regulations that require airlines to blend a growing share of low-carbon fuel into their operations.
Neither Shell nor Green Sky Capital has yet disclosed the total value of the investment planned for the Nador site.
