UAE starts construction of first SAF plant in Fujairah

MENA Biofuels, a unit of the Mercantile & Maritime Group, has begun work on the UAE’s first Sustainable Aviation Fuel (SAF) production facility within the Fujairah Oil Industry Zone (FOIZ), marking a significant step in the country’s decarbonisation agenda toward Net Zero 2050.

The facility will process used cooking oil and other waste-derived feedstocks into internationally certified SAF, directly aligning with the UAE’s Sustainable Aviation Fuel Roadmap 2030.

In phase one, output is expected to reach 125 million litres per year, covering roughly 18% of the UAE’s 2030 SAF target. A second phase will expand capacity to 250 million litres annually, lifting the facility’s contribution to about 36% of the national goal. Combined investment for both stages totals US$300 million.

Over the past year the project moved from planning to delivery: feasibility work was completed, land adjacent to MENA Terminals was secured from the Government of Fujairah, and Dynatron FZE was appointed project manager. Topographic and hydrological surveys are finalised, MUC Engineering is handling environmental assessments, and an international technology supplier has been selected.

Momentum increased at ADIPEC 2025 where MENA Biofuels signed a strategic offtake MoU with Emarat in the presence of UAE Minister of Energy and Infrastructure Suhail bin Mohammed Al Mazrouei. An additional agreement is anticipated at the Dubai Airshow, helping to establish a domestic SAF supply chain.

To advance the build, MENA Biofuels has issued the first EPCC tender for feedstock reception, storage and distribution infrastructure. A second EPCC tender for the SAF refinery units and ancillary systems is planned for Q1 2026, a critical milestone toward full operation.

Situated in a leading global oil and bunkering hub, the Fujairah plant positions the emirate as a centre for clean-fuel development. The project reinforces the UAE’s push to decarbonise aviation and broaden its energy mix.