Dubai to set up biodiesel plant
4 July 2011
DUBAI — Dubai takes lead in the Middle East as the emirate becomes first in the region for setting up a plant that produces biodiesel using recycled vegetable oil.
Dubai FDI, the foreign investment promotion arm of the Department of Economic Development (DED), Government of Dubai, has brought together Dubai-based newly established Neutral Fuels and McDonald’s UAE in a first-of-its-kind partnership to produce environmentally friendly 100 per cent biodiesel from used vegetable oil.
The new initiative also marks a major milestone in Dubai’s efforts to encourage local firms to acquire critical competencies and add more diversity to the business landscape in Dubai.
The US food chain uses over 20,000 litres vegetable oil at its 90 outlets in the UAE. The first licensed commercial biodiesel factory in the region will have an annual production capacity of one million litres. “We can convert one litre of used vegetable oil into one litre biodiesel,” Karl Feilder, Chairman of The Neutral Group, told Khaleej Times at a news conference on Sunday.
As per the new initiative, used vegetable oil will be collected from McDonald’s outlets across the UAE under a long-term contract with Neutral Fuels and converted into 100 per cent biodiesel. McDonald’s UAE will use the 100 per cent biodiesel in its logistics fleet, thus achieving significant reductions in its carbon footprint.
At the moment there is no saving on fuel cost, but may be in long-term when diesel prices go high, McDonald’s UAE Managing Director and Partner Rafic Fakih said. The initiative is not for saving purpose, it’s prime objective is to reduce carbon footprint.
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