Algae-based biofuel project in Oman targets bunker fuel demand

UK Asian biotechnology company HutanBio recently entered into a strategic Memorandum of Understanding with Oman’s Utopia World Investment (UWI) to support the growth of a sustainable fuels sector, including bunkering, in Oman.

Utopia is a majority shareholder in Wakud International which owns and operates Oman’s first dedicated biodiesel refinery. The collaboration seeks to develop and scale next-generation sustainable biofuel production to address one of the most difficult challenges in the fight against climate change: producing sustainable aviation and maritime fuel at commercial scale.

John Jones, COO of Utopia World BioEnergy, said: “By partnering with HutanBio, Utopia World is proactively building a pipeline of ultra-low carbon feedstocks for 2027 and beyond, ensuring continuity, scalability, and integrity in future fuel production.”

The partnership centers on the commercialisation of HutanBio’s proprietary algae-based oil technology, regarded as a scientific breakthrough for its proven ability to harness a newly discovered genus of algae identified by Dr John Archer, whose distinguished career includes leadership roles at Cambridge, MIT, and as one of the founders of KAUST’s biology department.

HutanBio’s novel microalgae strain demonstrates significantly higher productivity than conventional varieties, offering a potential path to producing sustainable crude alternatives at cost parity with traditional fossil fuels. Significantly, the technology has already proven successful in external pilot operations in Malaysia.

Under the terms of the agreement, Wakud will act as an offtaker as both entities scale their operations. Simultaneously, creating a robust framework for the domestic production and deployment of low-carbon fuels. This initiative arrives at a critical juncture for the aviation industry, which currently utilises less than 0.5% sustainable aviation fuel despite aggressive long-term decarbonisation targets of 25%.

Beyond its environmental impact, the project is expected to stimulate the growth of a specialised biotechnology industry, generating skilled employment opportunities and fostering local research and development capabilities. In addition to producing a green crude oil, the biotechnology has the potential to simultaneously enhance food security with the protein rich biomass byproduct.

Following successful discussions with government representatives and industry leaders, Manshu Agarwal, CEO of HutanBio, said the partnership reflects a shared ambition to position Oman at the forefront of the global clean energy transition.

“Oman is perhaps the single best place on Earth to build and scale this project, particularly because of its geopolitical stability, excellent human capital and refinery infrastructure in oil and gas, and of course the ideal climate for growing this algae,” he stated.

The first site is set to deploy in late 2027, before massive scale expansion in Oman, followed on by deployment through licensing in Asia, Northern Africa, Australia and parts of the US – supporting the needs of the entire aviation and maritime industry. 

By utilising arid coastlines and existing refinery infrastructure, HutanBio’s technology, supported by Wakud’s refinery expertise will transform Oman’s non-arable land into a high-tech biofuel hub to drive decarbonisation in the aviation and maritime sectors.

Photo credit: HutanBio
Published: 22 May, 2026