UAE's Fujairah port allocates land for biofuel plant

The Fujairah Oil Industry Zone (FOIZ) has allocated 54,000m² of land for the construction of a biofuel processing plant as part of the expansion of the Mena terminal in Fujairah, the world's third largest bunkering and oil storage hub, in the UAE.

FOIZ signed an agreement with the terminal owner, Bahrain-headquartered trading firm Mercantile and Maritime Group, to support "FOIZ's strategy to attract and establish low carbon and green fuel production".

The Mena terminal is a bulk liquid storage terminal, comprising 14 tanks and storing 352,000m³ of clean and dirty refined petroleum products.

Fujairah has been lagging Singapore and Europe in the transition to alternative marine fuels. The first delivery of B24 bunker fuel, a blend of 24pc fatty acid methyl ester (Fame) and 0.5pc sulphur marine fuel, was carried out in late 2023, with just two in the following weeks and one in the neighbouring port of Khor Fakkan in January.

The maritime industry has been looking at B24 blends as one of the main ways to meet the International Maritime Organisation's (IMO) decarbonisation targets that were agreed in 2023. Use of B24 biofuel could reduce CO2 emissions by 15-20pc compared with conventional bunker fuel, to comply with Carbon Intensity Indicator targets and ratings set by the IMO from 2024. This requires all ships to calculate their Energy Efficiency Existing Ship Index to improve energy efficiency.

By Elshan Aliyev