Lootah Biofuels is a pioneer producing biofuels from used cooking oil and FatHopes Energy is a Malaysian firm developing sustainable fats, oils, and grease solutions for advanced biofuel production.The agreement delineates a roadmap that encompasses diverse initiatives and engagements towards SAF development using technologies and opportunities in forming a practical supply chain, the statement showed.
"By leveraging FatHope Energy's expertise and technologies, we are poised to drive substantial progress in the production and distribution of Sustainable Aviation Fuel, catering to the burgeoning aviation sector in the United Arab Emirates and beyond," said CEO of Lootah Biofuels Yousif bin Saeed Lootah.
The global aviation sector has set a goal of becoming climate-neutral by 2050. It currently accounts for around 3% of the world's carbon emissions, which is expected to decline sharply with the use of SAF.
"Together with Lootah Biofuels, we aim to contribute to emission reduction in the aviation industry by establishing a robust infrastructure for the production and distribution of SAF, ensuring a greener and more environmentally responsible future," FatHopes Energy CEO Vinesh Sinha said.
Under the agreement, both companies will look to establish feedstock storage terminal and SAF refinery at strategic locations in Malaysia and the UAE.
The planned 200,000 sq m capacity liquid waste and residual feedstock storage facility at a suitable seaport in Southeast Asia is likely to act as a consolidation hub for the purpose of securing consistent feedstock supply for the refinery strategically located in the UAE.
Under the agreement, the firms will explore franchising opportunities for FatHopes Energy's technologies, data and entrepreneurship programs across MENA region to ensure ample feedstock supply, the statement said.
Platts assessed UCO FOB Southeast Asia at $810/mt Dec. 8, unchanged on the day, S&P Global Commodity Insights data showed. Platts assessed sustainable aviation fuel cost of production Southeast Asia at $1,474.34/mt Dec. 8, down $12.94/mt day on day.
