Airbus, Sumitomo and partners plan Oman saf plant

24 June 2024

Several companies, led by Netherlands-headquartered aircraft manufacturer Airbus, have signed a joint service agreement to develop a project that integrates sustainable aviation fuel (saf) and e-gasoline production in Oman.

Airbus' partners include state-backed OQ Alternative Energy, Italy's Automobili Lamborghini, UAE-based Dutco Group Cleantech and the Middle East subsidiary of Japan's Sumitomo Corporation.

The planned greenfield plant is classified as an integrated power-to-X project, which commonly refers to converting renewable energy into various derivative products.

The saf greenfield project adds "a new layer to Airbus' strategy in new energies, besides being already a pre-financial investment decision project equity investor in Australia and the US", according to Julien Lehalle, Airbus' director for investments, project origination and strategic partnerships. 

In addition to its potential for hybrid wind and solar power generation, green hydrogen and e-fuels production, Oman has two airlines, Oman Air and SalamAir, noted Lehalle.

The sultanate also has several airports managed by Oman Airports Management Company, as well as energy infrastructure and industrial ports to reach export markets in Europe and Asia Pacific, he added.

Saf pursuit

MEED reported in March that a consortium comprising Oman's Civil Aviation Authority, OQ Group and Netherlands-based saf specialist SkyNRG is undertaking a preliminary study looking at the potential of developing a saf production facility and overall saf roadmap in Oman.

The study is expected to be completed by the end of 2024.

The consortium aims to identify the opportunities for saf production within Oman, including the expected demand and its commercial applications.

According to an industry source, the feasibility study includes a feedback assessment and supply chain optimisation, and seeks to identify key regulatory and commercial measures to facilitate saf production in Oman.

The three partners signed the memorandum of cooperation for the project in Muscat in October 2023.

Alternative fuels like saf are among the top four energy transition technologies that offer varying potential in decarbonising maritime and aviation, two of the world's hard-to-abate sectors, according to a new GlobalData report.

The other three technologies are electrification; carbon capture and storage or carbon capture, utilisation and storage; and hydrogen.

Aviation and maritime represent two of the most difficult to abate sectors due to their demand for cost-competitive and energy-dense fuels. 

Related readAwards buoy Oman's green hydrogen strategy

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Jennifer Aguinaldo
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