Dubai-based alternative energy
firm SS Lootah Group has signed an agreement with a Philippines-based
producer to extract biofuels from algae and start production in the emirate
within the next 18 months.
Lootah Biofuels, a subsidiary of
SS Lootah Group, signed a Memorandum of Understanding with AlgaOil to set up a biodiesel production facility in Dubai and the joint venture aims
to start extracting biofuel from specially constructed algae ponds within 18
“This project aims at developing
alternate ways of extracting new raw material for Biofuels. We believe that
algae can be a good replacement for vegetable oil based biofuel. We are in no
doubt that this partnership will take Biofuel production in the region to the
next level,” said Yousif Lootah, CEO of Lootah Biofuels.
AlgaOil, which currently has
facilities in the Philippines, is currently performing field trials for the
development of the algae and the construction of open ponds for the large-scale
“Based on the success of the
initial start-up, the algae oil mass production will start in Dubai after six to
18 months,” the firms said in a statement.
The main advantage of algae is
its higher production value compared its rivals. Corn produces 0.9 barrels of
oil per hectare, soy beans roughly 2.5 barrels per hectare and palm oil roughly
32 barrel per hectare per year. By comparison, algae results in a yearly
production of 100 barrels per hectare per year.
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