original source https://egyptoil-gas.com/features/biofuel-economics-egypts-profitable-path-towards-energy-transition/ which contains full article.
It is the power of pricing that really gives Egypt a competitive edge in the biofuel market. As the Executive Manager of BioRotterdam Cleantech, a biodiesel and energy consultancy firm, Dr. Ibrahim Farouk asserts that Egypt has the ability to produce biofuel at a lower rate than other markets, citing a Swedish study that found producing biofuel in Europe is six times more costly than production in Egypt and a number of Arab countries. This advantage makes Egypt an attractive prospect for buyers overseas. “There is a strong opportunity [for biofuels in this market] based on figures that show that there is a large supply of feedstock in Egypt because of high population and there is also high demand for biofuel as a result of EU mandates as well as other types of green energy in both Egypt and Europe,” said Farouk. “Egypt has a lot of experience in the field of producing vegetable oils for food uses and the oleochemicals’ industry since the 1950s. At one time, we had large plantations for sunflower, cotton, and soybean oils. Our vast experience in this field has given us a technological advantage in the production of biofuels. Now we can melt our experience with market requirement and play a good role in planting vegetable oils for nonfood uses, biofuels being one of them.”
Catching the eye of willing investors remains the key to boosting this industry. Farouk asserts that COP 27 would be an ideal platform to lure all the essential investments, financing, strategic partnerships with international companies to benefit from. “We have a great opportunity at COP 27 to introduce ourselves as a country and as operating companies to show that we have the expertise, excellent infrastructure, and experience in producing vegetable oils. We need to introduce ourselves as an attractive location to invest in the production of biodiesel. According to the given data, Egypt can be easily become a regional hub for biofuels by 2030 whenever the investments are available.”
Above all, Egypt’s mere geography could play in its favor with its close proximity to the European market, which is considered the world’s largest for biofuel. Combined with the need for environmentally responsible fuel options, current regional developments may even create more demand and push the Europeans to tap into nearby markets where biofuel production is cost-effective, the know-how is available, and there is a reliably sustainable supply of feedstock. No country in the region would fit this description more than Egypt does, making it an attractive biofuel exporter to Europe.
Though there have been accomplishments in this field, there is still yet more to be done in Egypt for the local biofuel economy to be considered a force to be reckoned with. Nonetheless, with Egypt’s commitment to The Paris Agreement, it is not far-fetched that the Egyptian economy will witness major developments in this field soon enough, especially considering its export potential.
As much as biofuels are the more environmentally responsible path for a prosperous future, it also represents an economic opportunity that, if managed properly, can contribute to paving the way for Egypt’s energy transition. The potential that biofuels have is an inspirational reminder that even the most complex problems can be tackled with the simplest solutions. In this case, it is the biosphere itself.