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Why biofuels are a critical enabler of the UAE’s Net Zero journey
24 September, 2025
Biofuels have been in existence since the early 1800s, but their prominence has been rising particularly in the last few decades and it’s easy to see why, especially in today’s sustainability-driven world.
Derived from waste materials such as waste cooking oil or animal fats, biofuels offer a cost-effective and scalable renewable fuel alternative to fossil fuels as they don’t only reduce emissions but give second life to waste. This is especially true in hard-to-abate sectors like transportation, logistics, shipping and other long-haul transportation, which are more often than not, very difficult to electrify due to operational complexity and high energy demand.
Yet, adopting biofuels is not without challenges. Factors such as high production costs, limited local feedstocks, and reliance on imports can make biofuels more expensive than conventional fuels, especially in Middle East markets.
On the operational side, non-compatibility of models, unreliable supply chains, inconsistent fuel quality can create uncertainty for businesses. Equally challenging are awareness levels among companies that remain low.
When we look at the UAE, we’ve seen a rapidly expanding economy marked by a growing urban population, advancing infrastructure development as well as a busy port and aviation ecosystem. Within this framework, most of the progression and growth enablement conversation is hinged on electrification, renewables and finding alternative sources of energy including the increased exploration of biofuels which might have previously been overlooked.
Why biofuels matter for the UAE
While the electrification of passenger vehicles is advancing, and many other technologies are being developed, widespread adoption will still take a few years. With biofuels being readily available today, they can seamlessly be used across diesel engines which are predominately being used in heavy-duty transport, construction equipment, and shipping fleets – with or without modification.
This makes them a practical and immediate pathway to companies immediately work on cutting emission without incurring high capital costs of full fleet replacement.
Today, waste-to-energy projects and circular economy initiatives that create the feedstock streams for biodiesel production already exist. At the same time, as a global logistics hub, a large number of vehicles such as trucking, shipping, and aviation are being operated, which can serve as the perfect testing grounds for large-scale biofuel deployment.
Scaling with large fleets
Undoubtedly, the most compelling opportunity to adopt biofuels lies with industries that operate large fleets. These vehicles are a contributor of emissions but on the plus side, they present the clearest path for measurable impact if biofuels are adopted on a large scale.
In industries such as construction, logistics and last-mile delivery operators, there’s high demand for buses and trucks to mobilise workforces and materials and on the operational side there is wide-spread use of equipment like excavators and cranes, which can run on biofuels.
Adopting biodiesel doesn’t mean deserting other sustainability efforts. Instead, it can complement broader strategies such as fleet modernisation, and electrification. For companies with thousands of vehicles, every litre of fossil fuel replaced with biodiesel is a tangible contribution to the nation’s climate goals. A clear example is Dulsco People, which saves more than 250,000 kg of CO₂e annually by powering 75% of its fleet with a special biodiesel blend, demonstrating the tangible impact of greener, cleaner fuels.
The right balance of policy and partnership
Biofuels are being adopted widely, but unlocking its full potential requires collaboration. It is imperative for policymakers, biofuel producers, and corporations to work together to create awareness around the benefits, incentivise adoption, and ensure long term viability.
The UAE has already taken important steps. In 2024, the Ministry of Energy and Infrastructure (MoEI), in collaboration with strategic partners from the public and private sectors, introduced the National Policy on Biofuels to accelerate the country’s transition to clean and sustainable energy sources.
These kinds of regulatory frameworks build confidence for companies to invest in biofuel solutions. Whereas, large organisations can lead by setting biofuel adoption targets, piloting projects, and collaborating with biofuel producers to secure reliable supply chains.
Achieving Net Zero by 2050 is an ambitious but achievable goal not just for the government but for businesses as well. And to achieve it, a mosaic of solution must be adopted because no single alternative or technology can address every challenge and success truly lies in combining complementary methodologies.
Today, biofuels, particularly biodiesel, are among the most readily available and easy-to-use tools today. For companies with large fleets, adopting biofuels represents a clean environmental choice and a strategic business decision. The UAE is well-positioned to further integrate biofuels into its Net Zero strategy, cutting emissions while strengthening its global leadership in climate action, innovation, and sustainable growth.
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