Adnoc Distribution will use biofuel to power heavy vehicle fleet in UAE

Latest move will help company cut vehicle emissions by 15 per cent

The company’s UAE heavy vehicle fleet, supplying fuel and LPG to corporate customers, will be powered by B20 biofuel. Photo: Adnoc Distribution

Adnoc Distribution, the UAE’s largest fuel and convenience retailer, will use biofuel to power its heavy vehicle fleet in the country as the company continues to take steps to reduce its carbon footprint.

Its heavy vehicle fleet, supplying fuels and liquefied petroleum gas to corporate customers, will be powered by B20 biofuel, produced from waste cooking oil, Adnoc Distribution said in a statement on Wednesday.

The latest move will help the company to cut emissions from its fleet by 15 per cent and “is in line with Adnoc Group’s efforts to deliver on its accelerated decarbonisation plan”, the company said.

Adnoc Group this year brought forward its net-zero target by five years to 2045 as it intensified efforts to decarbonise operations.

“We are delivering on our commitment to using biofuel to power our fleet and help reduce our carbon intensity by 25 per cent by 2030,” said Bader Al Lamki, chief executive of Adnoc Distribution.

“This initiative ... supports the UAE’s Net Zero by 2050 strategic initiatives.”

Adnoc Distribution operates service stations in the UAE, Saudi Arabia and Egypt. It also sells lubricants in 32 countries through distributors.

It has more than 570 service stations, including 511 in the UAE and 64 in Saudi Arabia. It also recently opened new stations in Egypt, the Arab world’s most populous country.

In January, it converted a $1.5 billion term loan into a sustainability-linked offering, “committing to a penalty/incentive approach that ties the loan to sustainability indicators".

It is also actively working on the development of new sustainable mobility solutions, including electric vehicle-charging infrastructure. The company currently operates 38 EV charging points in the UAE.

In addition, Andoc Distribution has agreed with Taqa to work together to establish a mobility joint venture, E2GO, to build and operate EV infrastructure in Abu Dhabi and the wider UAE.

It also provides alternative fuel options, including compressed natural gas, across its network. In 2022, the company launched its Voyager Green Series range of lubricants, made from 100 per cent plant-based base oil.

Waste-based biofuels can prove to be a key driver of energy transition efforts and boost the current limited global supply of low-carbon transportation fuels, global research consultancy Wood Mackenzie said in a report last year.

Biofuels, a cleaner replacement for petroleum-based fuels, are produced from renewable sources such as new and used vegetable oil and animal fat, and account for only 3 per cent of the world’s liquid fuel demand of 100 million barrels per day, Wood Mackenzie said.