Having pioneered the commercial-scale production of low-carbon biodiesel from used cooking oil (UCO), Omani start-up Wakud is embarking on the next phase of its growth entailing a capacity ramp-up of its flagship project in Khazaen Economic City, as well as significant forays into Bahrain and Saudi Arabia.
Wakud CEO and Co-Founder Maher bin Mohammed al Habsi said the expansion, envisioned over the next three years, will be supported by investments of around $25 million.
Speaking at a recent forum focusing on the local potential for the production of zero-carbon Sustainable Aviation Fuel (SAF) for the aviation sector, Al Habsi also added that the company, backed by environmental services startup X2E, is also weighing around $630 million in investments in bio-refineries at Sohar and Salalah ports that will produce SAF from agri-oils.
The planned investments underscore Wakud’s ambitions to scale up operations notwithstanding a dismal uptake of its low-carbon fuel by energy companies and large corporate customers in Oman.
Until biodiesel use is mandated by authorities, as is the case in a number of countries globally, Wakud says it has little choice but to export its output to overseas markets, particularly the European Union.
First on its list of planned investments is the expansion of its existing plant at Khazaen, which was built in 2021 with a capacity of 7 million litres/year of biodiesel. Development of an adjoining plot of land, slated to commence this year at a cost of $7 million, will add around 25 million litres/year of biodiesel production capacity.
Feedstock for the expansion phase will comprise a mix of used cooking oil (UCO), fish waste and even camelina, a plant species cultivated in many parts of the world for its high oil content of up to 40 per cent.
Next year, Wakud plans to set up its first overseas facility — a 25 million litres/year capacity biodiesel plant — in Bahrain with an investment of $10 million. On its heels is planned the construction of a similar-sized plant at a cost of $10 million in Riyadh (Saudi Arabia) starting in 2025.
To support its sizable investments in biodiesel and SAF ventures, Wakud plans to recruit hundreds of Omani engineers and technical staff over the next several years. Nationals currently make up the bulk of Wakud’s engineering staff at Khazaen. Their numbers are projected to grow exponentially from 21 presently to 400 – 600 by 2025, he said.
Further, to help with the collection of waste cooking oil from assorted generators, such as hotels, restaurants, industrial caterers and others, Wakud has outsourced that function to a network of Omani-owned SMEs.
Around nine SMEs are currently involved in UCO collection activities, with scores more planned as the company seeks to progressively capture volumes from other major cities and towns around Oman.
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