MENA Biofuels Launches UAE's First Sustainable Aviation Fuel Facility In Fujairah

MENA Biofuels, a division of the Mercantile & Maritime Group, has initiated the UAE's first Sustainable Aviation Fuel (SAF) production facility in the Fujairah Oil Industry Zone. This facility will transform used cooking oil and waste-based feedstocks into certified sustainable aviation fuel that meets international standards. Phase I aims to produce 125 million litres annually, contributing about 18% towards the UAE’s 2030 SAF target.

Phase II plans to double this capacity to 250 million litres per year, supporting regional exports and contributing up to 36% of the nation’s SAF goal. The investment for Phase I is set at US$200 million, with an additional US$100 million allocated for Phase II. This project is a significant step in the UAE’s Sustainable Aviation Fuel Roadmap 2030 and its Net Zero 2050 Agenda.

At ADIPEC 2025, MENA Biofuels advanced its commercial implementation by signing a strategic offtake MoU with Emirates Petroleum Company (Emarat) in the presence of Suhail bin Mohammed Al Mazrouei, Minister of Energy and Infrastructure. A similar MoU is planned for the upcoming Dubai Air Show. These agreements lay the groundwork for UAE production of sustainable aviation fuel, marking progress in advancing the nation’s SAF Roadmap 2030 and Net Zero 2050 objectives.

The project has moved from concept to execution within a year. A comprehensive feasibility study confirmed its economic viability. The company secured land adjacent to MENA Terminals from the Government of Fujairah and appointed Dynatron FZE as Project Manager. Detailed topographic and hydrological surveys were completed by UAE consulting firms, and an internationally recognised technology provider was selected for converting waste-based feedstocks into certified sustainable aviation fuel.

MENA Biofuels launched the first Engineering, Procurement, Construction, and Commissioning (EPCC) tender for the Fujairah SAF facility. Qualified international and regional contractors with experience in renewable fuel projects are invited to participate. The first EPCC package will cover receiving, storage, and distribution facilities for feedstock, SAF, and by-products. By Q1 2026, MENA Biofuels will issue a second EPCC tender covering SAF refinery process units and associated infrastructure.

Robert Wright, former CEO of the European Biofuels Association, has been contracted to advise on policy and regulation matters. MUC Engineering – Fujairah Branch will conduct an Environmental Impact Assessment study and provide Project NOC consulting services.

"Building a home-grown SAF ecosystem requires investors, technology and distributors pulling in one direction," said Ali Khalifa Al Shamsi, CEO of Emarat. "With Emarat’s agreement with MENA Biofuels, intent becomes supply: accelerated volumes from Fujairah." He emphasised that this initiative supports decarbonisation efforts while creating domestic capacity that airlines can rely on.

Captain Salem Al Afkham from Fujairah Oil Industry Zone stated that launching the UAE's first SAF plant in Fujairah marks a pivotal milestone for both the Emirate and Nation. It aligns with their commitment to Net Zero 2050 strategy by transitioning towards more sustainable energy sources.

"We are proud to see MENA Biofuels progress from announcement to implementation in just one year," said Mohamed Saeed Al-Raqbani, Chairman of MENA Biofuels. "This project directly supports the UAE’s Sustainable Aviation Fuel Roadmap 2030." Gati Al-Jebouri added that leveraging Fujairah’s infrastructure aligns with their aim to become a regional leader in clean aviation fuel.

This project represents a new chapter in Fujairah's energy journey by diversifying its energy mix beyond conventional hydrocarbons into cleaner fuels. It also aligns with fostering in-market value creation through investment, innovation, and industrial capacity building long-term economic resilience.

With inputs from WAM