Construction begins on UAE’s first Commercial Sustainable Aviation Fuel plant in Fujairah

MENA Biofuels, part of the Mercantile & Maritime Group, has commenced implementation of the UAE’s first Sustainable Aviation Fuel (SAF) production facility in the Fujairah Oil Industry Zone (FOIZ).

The facility will convert used cooking oil and waste-based feedstocks into certified sustainable aviation fuel meeting international standards. Phase I will produce 125 million litres per year around 18 percent of the UAE’s 2030 target, while Phase II will double capacity to 250 million litres per year, supporting regional exports and contributing up to 36 percent of the nation’s SAF goal.

The planned investment for Phase I is US$200 million, with an additional US$100 million for Phase II. The project marks a major step forward in the UAE’s Sustainable Aviation Fuel Roadmap 2030 and its Net Zero 2050 Agenda.

MENA Biofuels has since progressed from concept to implementation, moving decisively towards execution. Over the past year the company has completed a comprehensive feasibility study validating the project’s economic viability and set the foundation for progressing the project to realisation. The project has secured the lease of land, adjacent to MENA Terminals, from the Government of Fujairah, appointed Dynatron FZE, a UAE engineering consulting firm, to act as Project Manager, completed detailed topographic and hydrological surveys carried out by UAE based consulting firms, and selected an internationally recognised technology provider for the process to convert waste-based feedstocks into certified sustainable aviation fuel.

Robert Wright, former CEO of the European Biofuels Association, has been contracted to provide advice on policy and regulation matters, and MUC Engineering – Fujairah Branch has been appointed to carry out an Environmental Impact Assessment study as well as provide Project NOC consulting services.

At ADIPEC 2025, MENA Biofuels advanced its commercial implementation through the signing of strategic offtake MoU in the presence of Suhail bin Mohammed Al Mazrouei, Minister of Energy and Infrastructure, with Emirates Petroleum Company (Emarat). In addition, it is the intention to sign a similar MoU at the upcoming Dubai Air Show. The agreements set the foundation for UAE production of sustainable aviation fuel, marking a key step in advancing the nation’s SAF Roadmap 2030 and Net Zero 2050 objectives.

Building on this momentum, MENA Biofuels has launched the first of two Engineering, Procurement, and Construction and commissioning (EPCC) tender for the Fujairah SAF facility, inviting qualified international and regional contractors with proven experience in renewable fuel and industrial projects to participate. The first EPCC package will cover the receiving, storage, and distribution facilities for feedstock, SAF, and by-products, establishing the project’s logistical backbone.

Within Q1 2026, MENA Biofuels will issue the second EPCC tender, covering the SAF refinery process units and associated infrastructure, marking a major step toward full-scale implementation of the UAE’s first Sustainable Aviation Fuel plant.

Ali Khalifa Al Shamsi, Chief Executive Officer of Emarat, said, “Building a home-grown SAF ecosystem requires investors, technology and distributors pulling in one direction. With Emarat’s agreement with MENA Biofuels, intent becomes supply: accelerated volumes from Fujairah, certified and locally produced, giving airlines a credible path to decarbonise.

By backing a UAE-built SAF stream in FOIZ, we are creating domestic capacity that carriers can count on - advancing the SAF Roadmap 2030 and the nation’s Net Zero 2050 ambition while keeping value, jobs and know-how in the UAE. Twelve months from concept to implementation sends a clear signal that the UAE is serious about sustainable aviation fuel, and Emarat is committed to turning that momentum into dependable offtake and real emissions reductions.”

Captain Salem Al Afkham, Director, Fujairah Oil Industry Zone, said, “The launch of the UAE’s first SAF plant here in Fujairah marks a defining milestone for both the Emirate and the Nation. As the first project of its kind in Fujairah and the UAE, it reflects our shared commitment to the Net Zero 2050 strategy and the transition toward more sustainable energy sources.

We are proud to be part of this achievement, which represents a new chapter in Fujairah’s energy journey. This project moves Fujairah closer to its strategic ambition of diversifying its energy mix beyond conventional hydrocarbons and into cleaner, higher-value fuels. It also aligns with the emirate’s and the UAE’s vision of fostering in-market value creation - bringing together investment, innovation, and industrial capacity to build long-term economic and environmental resilience.”

He added, “As this and similar projects take shape, FOIZ continues to evolve from one of the world’s top three oil storage and bunkering hubs into a fully integrated energy ecosystem - one where processing capacity and advanced technologies are leveraged to convert feedstocks into higher-value, more sustainable fuels. This transformation strengthens Fujairah’s role as a vital contributor to the region’s clean-fuels landscape and underscores our ongoing commitment to supporting the UAE’s broader energy transition.”

“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 and embodies our commitment to advancing clean energy through industrial investment and strategic partnerships.”

“By leveraging Fujairah’s infrastructure and aligning with the UAE’s SAF Roadmap, MENA Biofuels is aiming to become a regional leader in clean aviation fuel,” stated Gati Al-Jebouri, Chief Executive Officer of MENA Biofuels.

 WAM