Egypt to turn sugarcane waste into bioethanol in $278 million project

Egypt is moving forward with plans for a $278 million project to produce second-generation bioethanol from sugarcane bagasse, a byproduct of sugar production.

Minister of Supply and Internal Trade Sherif Farouk reviewed progress on the project with representatives from Proger and Drexel, according to a ministry statement.

The project aims to convert sugarcane bagasse into bioethanol, creating additional value from agricultural waste while reducing its environmental impact and associated carbon emissions.

Farouk said the initiative supports efforts to make greater use of resources and raw materials held by companies affiliated with the ministry and convert agricultural and food industry waste into economically valuable products.

The project follows a cooperation protocol signed with Proger Egypt in May 2023. Since then, bagasse samples have undergone technical testing to assess their suitability for bioethanol production, while a preliminary feasibility study is being updated ahead of the final assessment.

The state-owned Sugar and Integrated Industries Company is expected to provide the land and raw materials for the project and has begun preparing the required infrastructure, including natural gas connections and modifications to steam boiler burners.

Plans also include a proposed 10-year offtake agreement between Proger Egypt and Ecofuel, an Eni subsidiary, for the purchase of the project’s ethanol output, with provisions to potentially increase volumes.

The parties are also considering establishing a joint entity involving the Sugar and Integrated Industries Company, Proger Egypt and Drexel to oversee the next stage of development. The proposed entity would complete the final feasibility study, engage with potential investors and help finalise the project’s investment structure and funding.

Farouk called for accelerating the technical, financial and legal studies and preparing an implementation plan covering timelines, funding sources and the proposed partnership structure.

According to Drexel Project Manager Sherif Mohamed Ibrahim, the project will use fermentation technology to convert bagasse into second-generation bioethanol. The planned output is primarily intended for export to European markets.