A New Frontier for Waste-Derived Fuels
When most people think of biodiesel, they picture trucks and buses running on cleaner fuel. But the next chapter of the biofuel story is being written in the skies and on the seas — and the MENA region is emerging as a key player.
Used cooking oil (UCO), the same feedstock that powers road-going biodiesel, is now at the centre of the global push toward Sustainable Aviation Fuel (SAF) and cleaner marine fuels. For the UAE and its neighbours, this represents a convergence of environmental ambition, strategic geography, and existing waste-to-fuel infrastructure.
The SAF Opportunity
Sustainable Aviation Fuel is chemically similar to conventional jet fuel but produced from renewable feedstocks, including UCO. When derived from waste oils, SAF can reduce lifecycle carbon emissions by up to 80% compared to fossil jet fuel — without requiring any modifications to aircraft or airport fuelling infrastructure.
The UAE has signalled its commitment through the Sustainable Aviation Fuel Roadmap 2030, which outlines the nation's plan to integrate SAF into its aviation sector. Given that Dubai International Airport is one of the world's busiest aviation hubs and Abu Dhabi continues to expand its aviation footprint, the domestic demand for SAF is substantial and growing.
Notably, MENA Biofuels, a subsidiary of Dubai-headquartered Mercantile and Maritime Group, is currently developing what it describes as the UAE's first commercial SAF production facility in Fujairah. The facility is part of a broader strategy that includes securing sustainable feedstock through international partnerships, such as a recent MoU with Indonesia's Ministry of Cooperatives to develop a nationwide UCO collection ecosystem.
This cross-border collaboration highlights a critical reality: the SAF industry will require feedstock volumes that exceed what any single country can supply domestically, making international UCO supply chains essential.
Maritime Biofuels: Fujairah's Emerging Role
Fujairah, already the world's third-largest marine fuelling centre, is positioning itself as a hub for biofuel bunkering. The maritime sector faces increasing pressure from the EU's FuelEU Maritime regulation, which mandates progressive reductions in greenhouse gas emissions from shipping fuels starting with a 2% reduction against the 2020 baseline.
B24 blends — consisting of 24% UCO methyl ester (UCOME) mixed with very low sulphur fuel oil (VLSFO) — have already entered the Fujairah market, though supply constraints and sporadic demand have limited uptake so far. Industry participants expect demand to accelerate as shipowners prepare for more stringent IMO and EU mandates in the coming years.
The partnership between Uniper Energy Dubai and Neutral Fuels to deliver maritime biofuel in Fujairah is one example of how UAE-based producers are connecting local UCO-to-biodiesel capability with the maritime sector's decarbonisation needs.
Why UCO Is the Preferred Feedstock
UCO-derived biofuels hold a particular advantage in both aviation and maritime applications. Because the feedstock is 100% waste — no virgin crops are used — it avoids the sustainability controversies associated with palm oil or soy-based biofuels. Under EU regulations, waste-derived biofuels receive favourable treatment in emissions accounting and are not subject to the crop-based feedstock caps that limit other biofuel types.
For ISCC-certified producers like Neutral Fuels, this means UCO-derived biodiesel and its derivatives are well-positioned to meet the traceability and sustainability requirements of international markets, including export destinations in Europe.
The MENA Advantage
The MENA region has several structural advantages in the emerging biofuel supply chain. The UAE and GCC states host some of the world's highest per-capita food service activity, generating significant volumes of UCO. Strategic locations like Fujairah provide direct access to major shipping lanes. And established refining infrastructure can be adapted for biofuel production.
Saudi Arabia, through its Vision 2030 programme, has also begun exploring biofuel integration as part of its energy diversification strategy. As cross-border feedstock agreements develop and regulatory frameworks mature, the potential for a MENA-wide biofuel ecosystem becomes increasingly tangible.
What This Means for Neutral Fuels
Neutral Fuels' 14-plus years of UCO collection and biodiesel production experience positions us at the foundation of this expanding value chain. Every litre of UCO we collect today has the potential to serve road transport, maritime, or aviation applications — depending on market needs and processing pathways.
As SAF and marine biofuel demand scales up across the region, the importance of robust, certified UCO collection networks will only grow. For businesses generating used cooking oil, this means your waste stream is becoming more valuable — and more strategically important — than ever before.
Get in touch to learn how your UCO can contribute to the next generation of clean aviation and maritime fuels.
