Mercantile & Maritime Group has announced the expansion of its biofuel processing plant at MENA Terminals in Fujairah, UAE. The expansion, valued at AED 2.2 billion, will add more than 1 million square feet to the existing facility. It is expected to be completed by 2026.
Once finished, the plant will produce up to 150 million liters of sustainable aviation fuel (SAF) annually. This will account for nearly 10% of the current global SAF production. The facility aims to support the UAE’s efforts to reduce carbon emissions and develop local low-carbon aviation fuel sources.
The plant will focus on producing SAF locally, which will help reduce the country’s reliance on imports. The facility will use the local rail network to transport the fuel within the UAE and plans to expand to regional distribution in the future. The plant will integrate artificial intelligence to optimize its refinery operations and maintenance processes.
Mercantile & Maritime Group stated that the expansion would help meet global environmental standards set by organizations such as IATA, CORSIA, and RED III. The project is also in line with the UAE’s “Net Zero 2050” initiative, aiming for carbon neutrality by 2050.
In recent years, the UAE has taken steps to develop its sustainable aviation fuel industry. In 2023, the UAE produced its first SAF from locally sourced feedstocks. The country also approved the use of SAF in commercial aviation and has incorporated it into the operations of national carriers like Emirates. These developments are part of the UAE’s broader strategy to diversify energy sources and increase the production of sustainable fuels.