DMEA: MMG plans new biofuel facility in UAE

The Mercantile & Maritime Group has unveiled a plan to expand its MENA Terminals facility in Fujairah alongside the launch of a £272.2bn biofuel processing plant.

The company – currently a world leader in oil and gas trading, logistics and energy – has chosen to move forward with the plans as part of its commitment to developing sustainable energy solutions with goal of turning the UAE into a trailblazer in clean energy.

According to a report by Tank Terminals, the biofuel facility at MENA is set to be expanded by more than 1mn square feet and is slated to be up and running by 2026 – producing around 150mn litres of sustainable aviation fuel (SAF) per year in the process. This will make up almost 10% of the world’s current SAF production capacity, placing the Middle East firmly into the lead in the clean energy sector while also aligning with the UAE’s own policy to reduce its domestic carbon emissions.

Commenting on the development, CEO of Mercantile & Maritime Group Murtaza Lakhani said that the expansion was a “major step forward for both our company and the UAE’s green energy ambitions,” adding: “Fujairah’s strategic location and progressive leadership make it the perfect hub for our biofuel facility, which will be the largest of its kind in the Middle East. Our investment is a reflection of our dedication to environmental responsibility and to the UAE’s ‘Net Zero 2050’ initiative”. He concluded that the company was “proud to play a role in shaping a more sustainable future for the region”.

Mercantile & Maritime Group has also prepared plans for distribution and will utilise traditional shipping methods alongside local rail networks to transport SAF around the UAE. This is expected to minimise environmental impact across the supply chain in its entirety.

Moreover, the biofuel plant will also have advanced artificial intelligence installed, which will streamline operations further while optimising maintenance schedules and improving efficiency.

Upon completion, the plant is expected to adhere to international standards set by IATA, RED III and CORSIA, keeping it in line with global emissions regulations. Regarding this, Lakhani noted that the facility’s SAF production would contribute to the UAE’s energy security and “enhance its environmental performance by reducing emissions and improving the sustainability of aviation fuel production”.

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