Mercantile & Maritime Opens Middle East's Largest Biofuel Facility in UAE

Mercantile & Maritime Group, a prominent global player in energy and logistics with expertise in oil and gas trading, has announced an ambitious expansion of its wholly owned MENA Terminals in Fujairah, UAE, aimed at establishing the Middle East’s largest biofuel processing plant. This groundbreaking project, valued at AED 2.2 billion, underscores the group’s commitment to sustainable energy and aligns with the UAE’s vision of becoming a leader in green energy initiatives. The expansion marks a significant stride toward a low-carbon future, supporting the UAE’s “Net Zero by 2050” agenda and reinforcing its position as a global hub for innovative energy solutions.

The new biofuel facility, set to span over 1 million square feet, is expected to be completed by 2026. Once operational, the plant will produce up to 150 million liters of sustainable aviation fuel (SAF) annually, which will represent nearly 10% of the current global SAF production—a substantial contribution to worldwide efforts to reduce carbon emissions in aviation. This milestone will enhance the region’s capacity to support low-carbon aviation, a priority for the UAE as it seeks to drive sustainability in line with international goals and standards. The facility will further cement the UAE’s leadership in green energy, with the aim of reducing the environmental impact of traditional aviation fuels and encouraging regional production of SAF.

Mercantile & Maritime CEO Murtaza Lakhani expressed his gratitude to the UAE’s leadership, emphasizing the crucial support provided by His Highness Sheikh Hamad bin Mohammed Al Sharqi, the Ruler of Fujairah. According to Lakhani, Fujairah’s strategic location, along with the vision and dedication of its leadership, has provided an ideal foundation for developing the largest biofuel plant in the Middle East. He noted that the group’s investment in the facility not only reflects its commitment to environmental stewardship but also showcases the company’s resolve to contribute actively to the UAE’s sustainable future.

By producing SAF locally, Mercantile & Maritime is also minimizing the UAE’s dependence on imported fuel, which will reduce the carbon emissions associated with international transportation and logistics. The facility’s distribution plan includes utilizing the UAE’s advanced rail network, further reducing reliance on traditional shipping methods, with additional plans for regional distribution in the future. This local production and distribution model aims to support a low-carbon supply chain for SAF, significantly lessening the environmental impact across the fuel’s life cycle.

To optimize efficiency, the facility will incorporate advanced artificial intelligence technologies to enhance operations and maintenance processes. This innovation will not only improve plant productivity but also ensure adherence to strict global environmental standards, including those established by IATA, CORSIA, and RED III. Compliance with these standards will position the facility as a leading model in the biofuel sector, aligning with the highest levels of environmental responsibility.

As part of its unveiling, MENA Terminals will showcase a 3D model of the new biofuel facility at ADIPEC 2024, held from November 4 to 7 at the Abu Dhabi National Exhibition Centre. This exhibition invites visitors to engage with the facility’s design and innovative capabilities, highlighting Mercantile & Maritime Group’s dedication to advancing sustainable energy solutions and the UAE’s role in driving a greener future for the region and beyond.