Egypt and Italian Firms Advance $278M Bioethanol Production Initiative

Minister of Investment and Foreign Trade Mohamed Farid recently met with representatives from Italian companies Proger and Draxil to discuss the ongoing progress of a major investment project focused on producing second-generation bioethanol from sugarcane bagasse, with an estimated investment of $278 million.

The high-level discussions centered on technical updates and implementation milestones for the project, which seeks to transform agricultural and industrial waste into high-value export products, thereby advancing Egypt's commitment to a sustainable green economy and localized manufacturing.

During the meeting, Mohamed Farid emphasized that the ministry remains dedicated to streamlining investor procedures and enhancing service efficiency to draw more foreign direct investment. He highlighted that priority is consistently granted to initiatives that boost national production, expand export capabilities, foster economic growth, and generate employment opportunities.

The discussions also explored plans to export a major share of the bioethanol output directly to European markets, which is expected to secure steady foreign currency revenues. Representatives from Proger and Draxil shared their strategic vision for the facility, noting that the abundant supply of sugarcane bagasse in Egypt provides an ideal foundation for a fully integrated second-generation biofuel operation.

Both parties reviewed recent technical test results on bagasse samples alongside updated feasibility studies aimed at finalizing the investment and financing structures. This meeting follows earlier consultations between the Italian executives and Minister of Supply and Internal Trade Sherif Farouk regarding partnership frameworks and imminent steps toward active implementation.