Abu Dhabi-based Atles Industries has signed an agreement with China Chemical Middle East (Sinochem) to build a biomass refinery in Khalifa Industrial Zone (Kizad) in Abu Dhabi.
The project, for which the partners have committed a total investment of $1bn, is planned to have a capacity of 1 million tonnes a year (t/y). It will be built in phases, with the first phase to have an output potential of 250,000 t/y.
Atles Industries, a privately owned special project vehicle company established in Abu Dhabi, will design, develop, finance construct, own and operate the biomass refinery plant.
The operator will use sustainable vegetable oil and biomass residues to manufacture ASTM and ENO specified products, such as green diesel, green aviation fuel, green naphtha and green liquefied petroleum gas.
“The project will be the first advanced biofuel refinery of its kind in the Middle East,” says Atles Industries.
The project will mainly supply biofuel products to the US and Europe “with potential to expand to other markets in North America and the Middle East with special attention to the GCC markets”, the company says.
