First Sustainable Aviation Fuel Project in Oman: What This Means for Investors and Businesses
MUSCAT: US-based carbon recycling company LanzaTech has entered into an agreement with the International Finance Corporation (IFC), the private-sector arm of the World Bank Group, to develop the first-ever Sustainable Aviation Fuel (SAF) project in Oman.
Jennifer Holmgren, CEO of LanzaTech, explained that the initiative aims to transform waste industrial gases in Oman into ethanol, which can subsequently be refined into sustainable aviation fuel. This fuel enables airplanes to operate using recycled carbon rather than traditional fossil fuels.
Holmgren stated, “I recently had the privilege of signing a landmark agreement that sets a bold new course for aviation and climate action in Oman. Oman is rapidly becoming a leader in the circular carbon economy by demonstrating how industrial expertise and progressive policies can convert waste carbon into valuable products. In the GCC region, countries like Oman and Saudi Arabia are leading the way toward a future where carbon is continuously recycled and reused, opening new opportunities for circular carbon to become a reality.”
Currently, the project is in its initial phase, with LanzaTech and the IFC collaboratively conducting a comprehensive feasibility study. This includes detailed evaluations of feedstock and product markets, capital expenditure projections, and financial modelling, all aimed at establishing a clear path to final investment decision (FID) and project implementation.
LanzaTech, headquartered in Illinois, will provide its core technology for producing SAF in Oman. Their biorecycling process captures carbon-rich gases directly from high-emission industrial sites, preventing these gases from entering the atmosphere. The captured carbon is then converted into sustainable alternatives to fossil-based materials, which have applications spanning detergents, textile fibers, packaging, and transport fuels.
Currently, about six commercial facilities worldwide operate using LanzaTech’s technology platform. The company is building a robust value chain for recycling carbon into ethanol and subsequently into SAF. Holmgren highlighted Oman’s conducive environment, citing its potential to become a regional or even global hub for circular carbon solutions.
Holmgren emphasized the significant impact the SAF project will have on Oman, estimating an annual production capacity of 80,000 tonnes of SAF. She noted, “Projects like this support Oman Vision 2040 by fostering job creation and economic diversification.”
According to Holmgren, SAF could contribute over 60% of the aviation sector’s CO₂ reduction targets by 2050. She added, “If another 15 to 20 plants of similar scale are developed globally, annual sustainable fuel production could surpass 1.5 million tonnes—50% more than last year’s total global SAF output. This is the transformative scale the world urgently requires.”
Oman’s rich availability of diverse carbon-rich feedstocks, combined with its advanced industrial infrastructure, positions it ideally to lead in circular carbon innovation. LanzaTech noted that this project further solidifies Oman’s status as a regional pioneer in carbon circularity.
The IFC underlined the importance of this collaboration, stating, “The project aligns with Oman Vision 2040’s goals of sustainable manufacturing, economic diversification, and job creation. This initiative is a key component of the World Bank Group’s mission in Oman and marks a continuation of IFC’s expanding presence following vital agreements announced during World Bank Group Day last year.”
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The LanzaTech-IFC collaboration to develop Sustainable Aviation Fuel (SAF) in Oman positions the Sultanate as a pioneering hub for circular carbon economy in the GCC, aligning with Oman Vision 2040’s goals of sustainability and economic diversification. For businesses and investors, this marks a critical opportunity to tap into emerging green technologies that promise robust job creation and new industrial value chains, while mitigating risks associated with carbon-intensive industries. Smart entrepreneurs should consider strategic partnerships in carbon recycling and sustainable fuels to capitalize on Oman’s growing role in global climate innovation.
