Oman’s first biofuels producer Wakud plans to establish a biofuel plant with a capacity of 250 tons per day at an investment cost of USD 120 mn to USD 150 mn in partnership with Omani-British green energy venture X2E, who will be funding the project, the two companies’ top executives told Zawya Projects last week. The plant, which will be set up in the country’s Khazaen Economic City, comes as part of Wakud’s plans to boost its production capacity 10x, they said.

What we know: Construction on the project is set to begin in two months, with a completion timeframe of 16 months, Wakud CEO Maher Al Habsi said. Production is expected to begin by the end of 2024, he added.

The plant could also expand to encompass SAF production: “With this huge factory, we will be ready to produce sustainable aviation fuel (SAF) and marine fuels by 2025, depending on raw material availability,” he said.

Background: X2E acquired a 60% stake in Wakud for USD 1.4 mn, and plans to spend an additional USD 3.6 mn soon to raise the capacity of Wakud’s existing facility, which produces 20 tonnes of biofuel a day, he added. The company announced the acquisition in a LinkedIn statement yesterday.

The company’s eyeing regional expansion: Wakud could also be looking at expanding to Saudi Arabia and the UAE, he said. "About 90k tonnes per month of used cooking oil (UCO) is available in Saudi. The country has big plans for the sector, and we would like to participate in that," he said.

About Wakud: The Omani-based company is a joint venture between Carbon Management Services, the UK’s leading manufacturer of sustainable biofuel process equipment Green Fuels, and Al Habsi to set up a biofuel ecosystem in the Middle East starting with Oman, according to the company’s website. It supplies biofuels to various industries, including construction and shipping, in a bid to help them slash their carbon footprint.

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