Pioneering Sustainable Aviation Fuel Facility to Revolutionize Fueling in Fujairah

The UAE is building its first sustainable aviation fuel production facility in Fujairah, marking a major step toward reducing the aviation industry's carbon footprint. Emirates Petroleum Company signed a strategic partnership with MENA Biofuels during ADIPEC 2025, with the project set to produce 125 million liters annually in its first phase—covering 18% of the UAE's sustainable aviation fuel targets by 2030.

The facility represents a $300 million investment across two phases. The first phase will cost $200 million and produce 125 million liters per year, while the second phase adds another $100 million investment to double capacity to 250 million liters annually. This would meet 36% of the UAE's total sustainable aviation fuel production goals.

MENA Biofuels launched the first of two engineering, procurement, construction, and operation tenders for the new facility. The initial tender covers raw material handling, storage, and distribution facilities, plus infrastructure for storing sustainable fuel and processing byproducts. The second tender, scheduled for Q1 2026, will handle the main processing units for sustainable fuel refining and supporting infrastructure.

Ali Khalifa Al Shamsi, CEO of Emirates Petroleum, said building a complete national biofuel system requires cooperation between investors and distribution networks alongside modern technology. The partnership turns this vision into reality by producing certified, locally-processed sustainable fuel in Fujairah, giving airlines a reliable path to cut carbon emissions.

The project fits into the UAE's broader climate strategy. The facility will help achieve the National Roadmap for Sustainable Aviation Fuel 2030 and the UAE's Net Zero Strategy 2050, while keeping economic value and jobs within the country.

Mohamed Said Al Raqbani, Chairman of MENA Biofuels, emphasized that the facility will produce internationally certified sustainable aviation fuel meeting the highest quality and emissions standards. The Fujairah location positions the UAE as a regional hub for sustainable aviation fuel production, ensuring stable supplies to domestic markets, GCC countries, and global markets.

Captain Salem Al Afkham, Director of Fujairah Oil Industry Zone, said launching the UAE's first sustainable aviation fuel facility marks a turning point in the country's commitment to its 2050 climate neutrality strategy. The project aligns with the emirate's vision to boost local economic value by combining investment, innovation, and industrial capabilities.

The Fujairah facility builds on the zone's existing strengths. Already one of the world's three largest ship fuel storage and supply centers, Fujairah is evolving into an integrated energy hub that combines manufacturing capabilities with advanced technologies to convert raw materials into more sustainable, higher-value fuels.

For airlines operating in the region, this facility offers a local source of sustainable aviation fuel, reducing dependence on imports and potentially lowering costs. The aviation industry faces increasing pressure to reduce emissions, and sustainable aviation fuel is currently one of the few viable options for long-haul flights where electric alternatives aren't practical.

The timing is significant as global aviation fuel demand continues growing while environmental regulations tighten. The UAE's investment positions the country to capture value in the sustainable fuel market while supporting its own aviation sector, which includes major carriers like Emirates and Etihad Airways.