New biofuel facility in UAE to produce 150 million litres of sustainable aviation fuel

Facility in Fujairah is valued at approximately Dh2.2 billion

Abu Dhabi: Singapore-based energy and commodities trading company Mercantile and Maritime group announced Tuesday plans to expand its wholly owned and operated facility, MENA Terminals, to launch a biofuel processing plant. The plant in Fujairah would be valued at approximately Dh2.2 billion.

The biofuel facility at MENA Terminals will be expanded by over one million square feet and is set for completion by 2026. Once operational, it will produce up to 150 million litres of sustainable aviation fuel (SAF) annually, representing nearly 10 per cent of current global SAF production.

Murtaza Lakhani, CEO of Mercantile and Maritime, said, “Fujairah’s strategic location and forward-thinking leadership make it an ideal home for our biofuel facility at MENA Terminals. By producing SAF locally, we reduce the nation’s reliance on imports, thereby lessening carbon emissions and minimising environmental impact across the entire supply chain, including traditional shipping methods.”

Alternatively, the company also said it plans to utilise the local rail network to transport SAF across the UAE, with plans for regional distribution. “The SAF processing plant will integrate advanced artificial intelligence to optimise refinery operations and maintenance. Additionally, the facility will adhere to global standards set by IATA, CORSIA, and RED III, supporting the highest levels of environmental compliance,” added Lakhani.

In June this year, the International Air Transport Association (IATA) announced that its projections for a tripling of SAF production in 2024 to 1.9 billion litres (1.5 million tonnes) are on track. This would account for 0.53 per cent of aviation’s fuel need in 2024.