A consortium led by Abu Dhabi’s clean energy company Masdar plans to produce sustainable aviation fuel (SAF) from methanol.
The consortium, which also includes France’s TotalEnergies and Siemens Energy, is currently focused on SAF from green hydrogen, but is “actively working” with licensors to certify a new production pathway for aviation fuel from methanol, the companies said in a statement on Wednesday.
Methanol, primarily used to produce chemicals such as acetic acid and formaldehyde, is also a clean-burning fuel that produces fewer smog-causing emissions.
SAF, considered by the aviation industry as the most significant contributor to reaching the net zero goal, requires a major boost in production from the current minuscule levels.
In 2021, airlines globally pledged net-zero carbon emissions from their operations by 2050 — bringing the air transport industry in line with the objectives of the 2015 Paris Agreement to limit global warming to 1.5°C above pre-industrial levels.
Airlines are facing pressure from environmental groups to lower their carbon footprint and make operations greener after the Covid-19 pandemic.
Last week, Masdar, Siemens Energy and TotalEnergies signed an agreement to develop a demonstrator plant project in Masdar City.
“The demonstrator plant will help to establish the commercial viability of green hydrogen as an essential decarbonised fuel of the future and will support Abu Dhabi’s development as a green hydrogen hub,” Mohamed Al Ramahi, chief executive of Masdar, said in an earlier statement.
“While the hydrogen market is still at a comparatively early stage, we firmly believe that by working together with international partners on projects such as this, we can help the hydrogen market develop its full potential and it will really take off in the years to come.”
The global aviation industry could use 15 per cent to 20 per cent of the world's projected hydrogen supply of 600 million tonnes by 2050 for the production of SAFs and to power new aircraft, according to airline trade association the International Air Transport Association.
Aviation is projected to use about 100 megatonnes — 100 million tonnes — of hydrogen for the production of SAF and 20 megatonnes for hydrogen-powered aircraft, if they enter into service by 2035.
Last year, Etihad Airways operated a net-zero emissions flight from Dulles International Airport in Washington to Abu Dhabi, via the Egyptian Red Sea resort of Sharm El Sheikh, to carry delegates to Egypt's Cop27 climate change conference.
It joined up with net-zero services provider World Energy to operate the flight powered entirely by SAF through a book-and-claim system.
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Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
The Buckingham Murders
Starring: Kareena Kapoor Khan, Ash Tandon, Prabhleen Sandhu
Director: Hansal Mehta
Rating: 4 / 5
The UN General Assembly President in quotes:
YEMEN: “The developments we have seen are promising. We really hope that the parties are going to respect the agreed ceasefire. I think that the sense of really having the political will to have a peace process is vital. There is a little bit of hope and the role that the UN has played is very important.”
PALESTINE: “There is no easy fix. We need to find the political will and comply with the resolutions that we have agreed upon.”
OMAN: “It is a very important country in our system. They have a very important role to play in terms of the balance and peace process of that particular part of the world, in that their position is neutral. That is why it is very important to have a dialogue with the Omani authorities.”
REFORM OF THE SECURITY COUNCIL: “This is complicated and it requires time. It is dependent on the effort that members want to put into the process. It is a process that has been going on for 25 years. That process is slow but the issue is huge. I really hope we will see some progress during my tenure.”
British Grand Prix free practice times in the third and final session at Silverstone on Saturday (top five):
1. Lewis Hamilton (GBR/Mercedes) 1:28.063 (18 laps)
2. Sebastian Vettel (GER/Ferrari) 1:28.095 (14)
3. Valtteri Bottas (FIN/Mercedes) 1:28.137 (20)
4. Kimi Raikkonen (FIN/Ferrari) 1:28.732 (15)
5. Nico Hulkenberg (GER/Renault) 1:29.480 (14)
