PETALING JAYA: Biofuel feedstock supplier FatHopes Energy Sdn Bhd has signed a memorandum of understanding (MoU) with Dubai-based Lootah Biofuels LLC to supply sustainable aviation fuel (SAF) to airlines flying out from Dubai International Airport.
The MoU, signed during COP28 in Dubai recently, was witnessed by Natural Resources, Environment and Climate Change Minister Nik Nazmi Nik Ahmad and United Arab Emirates Minister of Climate Change and Environment Mariam Almheiri.
The collaboration between FatHopes Energy and Lootah Biofuels aims to explore the potential development of a SAF refinery that can supply SAF to the aviation sector in Dubai or directly to the airport. The location of the plant will be determined based on strategic factors, such as proximity to the point of consumption in Dubai or the availability of feedstock in Malaysia.
The MoU includes plans for Lootah Biofuels to study, adapt and implement FatHopes Energy’s used cooking oil (UCO) aggregation technology that has been developed for the past decade. This includes mobile apps and other digital solutions, along with an entrepreneurship programme and franchisee scheme throughout the Middle East and North Africa region. The goal is to secure a consistent supply of raw materials for the SAF refinery and establish a circular economy model that turns waste oil into valuable fuel.
The initiative between FatHopes Energy and Lootah Biofuels also outlines a comprehensive plan for assessing and exploring the collaborative establishment of a UCO feedstock aggregation hub located in Westports, Malaysia. Planned as a regional consolidation facility, this hub is designed to efficiently manage all waste-derived feedstock spanning all of Asia.
The hub will be vital to maximising the transport and processing of feedstock for the SAF refinery with 200,000 tonnes of annual capacity. Beyond its operational function, the hub is positioned to enhance regional collaboration and trade within the renewable energy sector, contributing to the development of a more interconnected and sustainable landscape.
FatHopes Energy and Lootah Biofuels will also study the establishment of essential biofuels infrastructure in Southeast Asia to support the biofuels industry throughout the entire supply chain.
Nik Nazmi said, “This collaboration marks a significant stride towards a more sustainable future for the aviation industry. The commitment of FatHopes Energy and Lootah Biofuels to develop the most competitive and carbon-efficient solution from waste for this sector is truly laudable. This partnership not only strengthens the ties between our nations but also exemplifies our shared efforts in fostering environmental responsibility.”
Dubai International Airport, among the world's busiest, completed a pipeline project in 2015 connecting it to Horizon Terminals to secure its substantial annual jet fuel demand of 10 billion litres, reducing reliance on road tanker deliveries. Addressing environmental concerns, the airport is exploring sustainable aviation fuel with potential 80% carbon emission reduction.
FatHopes Energy founder and CEO Vinesh Sinha said, “Partnering with Lootah Biofuel provides us with the opportunity to explore the possibility of building a SAF Refinery that can supply green jet fuel to the aviation sector in Dubai and beyond. As a player in the waste and residue biofuel feedstock market, we have the resources and the network to source and deliver high-quality and low-carbon feedstocks for SAF production.
“We believe that this MoU will pave the way for a long-term and mutually beneficial partnership, as well as support the global agenda to reduce greenhouse gas emissions from the aviation industry. We are looking forward to working with Lootah Biofuels to make this a reality.”
Lootah Biofuels LLC CEO Yousif Saeed Lootah said they are excited about the positive impact this initiative will have on the aviation industry and the broader global community.
