Egypt is advancing a $278 million bioethanol project that would convert sugarcane bagasse into second-generation bioethanol, as the government works with Italian firms Proger and Drexel to establish a joint entity to execute the venture.

Project targets sugarcane waste

The project is backed by a 10-year purchase agreement between Proger Egypt and Ecofuel, a subsidiary of Italy’s Eni. The agreement provides a potential route to European markets and allows for higher volumes, strengthening the project’s commercial case and investment prospects.

The state-run Sugar and Integrated Industries Company will provide land and raw materials while preparing infrastructure, including natural gas connections and boiler modifications, for the execution phase.

The proposed joint entity will bring together the Sugar and Integrated Industries Company, Proger Egypt and Drexel. It will complete the final feasibility study, engage investors, determine the financing structure, increase capital and oversee the transition into construction. The legal framework is being reviewed with the Supply Ministry’s legal adviser.

Egypt pushes clean-energy investment

Supply and Internal Trade Minister Sherif Farouk led discussions on the project, which aims to transform bagasse, the fibrous residue left after sugarcane processing, into higher-value biofuel.

Farouk said the ministry supports projects that make better use of state assets while converting agricultural waste into value-added products. The project also fits Egypt’s broader push to expand the green economy, reduce carbon emissions and improve environmental sustainability.

Cooperation with Proger began with a protocol signed in May 2023. Since then, technical trials have been conducted on bagasse samples, while a preliminary feasibility study is being updated. Farouk called for the technical, financial and legal work to be accelerated so the project can establish a clear timetable, funding plan and partnership structure.

Sherif Mohamed Ibrahim, Drexel’s project head, said converting bagasse through fermentation into bioethanol could create a public-private partnership combining Egyptian assets with foreign engineering expertise while opening access to international clean-energy markets.

Italian expertise meets Egyptian industrial assets

Proger, an Italian engineering company operating in Egypt through Proger Egypt JSC since 2017, initially focused on oil and gas projects before expanding into green energy, biofuels and turnkey construction investments, including the Petrobel Headquarters project.

Drexel Energy & Oilfield Services, operating as Drexel, is an industrial services, engineering and project-management company within Egyptian holding group Sky Investments. Based primarily in Cairo, it operates as a joint-venture partner alongside Proger S.p.A.

Ecofuel S.p.A., part of Italy’s state-controlled energy giant Eni, specializes in the global production, marketing and logistics of clean-fuel components, high-octane oxygenated additives and methanol. If completed, the project would give Egypt another route to monetize agricultural waste while linking its sugar industry with the growing European market for lower-carbon fuels.