Muscat: US-based carbon recycling company LanzaTech has signed an agreement with the International Finance Corporation (IFC), the World Bank Group’s private-sector arm, to work together on developing Oman’s first-ever Sustainable Aviation Fuel (SAF) project, reports Zawya.
LanzaTech CEO Jennifer Holmgren said the initiative will focus on converting waste industrial gases in Oman into ethanol, which can then be refined into sustainable aviation fuel—allowing aircraft to run on recycled carbon instead of fossil fuels.
Holmgren described the agreement as a major milestone. “I recently had the honour of signing an agreement that marks an important step for aviation and climate efforts in Oman,” she said. “Oman is quickly emerging as a leader in the circular carbon economy, showing how industrial capabilities and progressive policies can turn waste carbon into valuable products. Across the GCC, countries such as Oman and Saudi Arabia are demonstrating how carbon can be continuously reused, opening new opportunities for circular carbon systems,” she said.
Stage 1 of the project is in progress, with LanzaTech and the IFC carrying out a joint feasibility study that includes assessing feedstock and product markets, estimating capital costs, and developing financial models to create a clear path to a final investment decision and project rollout.
LanzaTech’s biorecycling technology will be central to SAF production in Oman. The process captures carbon-rich gases directly from energy-intensive industrial sites and prevents them from entering the atmosphere. The carbon is then turned into sustainable substitutes for fossil-based materials, used in products such as detergents, textile fibres, packaging and transport fuels.
Currently, six commercial plants around the world operate using LanzaTech’s technology. The company says it is creating a new value chain by converting captured carbon into ethanol and then into SAF, and believes Oman is well-placed to become a regional—and possibly global—hub for circular carbon solutions.
Holmgren said the project could make a significant difference for Oman. “Projects like this could produce around 80,000 tonnes of SAF every year, boosting Oman Vision 2040, creating jobs, and supporting economic diversification,” she said.
She added that SAF is expected to contribute more than 60% of aviation’s CO₂ reductions by 2050. “If only 15–20 more plants of this scale are built globally, we could see more than 1.5 million tonnes of sustainable fuel produced annually — which would be 50% more than what the world produced last year. That is the kind of scale needed today,” she said.
Oman’s access to varied carbon-rich feedstocks and its strong industrial infrastructure make it an ideal location to lead circular carbon initiatives, the company said. The project strengthens Oman’s position as a regional frontrunner in carbon circularity.
Highlighting the importance of the initiative, the IFC said: “This project aligns with Oman Vision 2040 and its goals for sustainable industries, economic diversification, and employment generation — a priority for the World Bank Group in the country. This collaboration builds on IFC’s growing engagement in Oman following major agreements announced during the World Bank Group Day last year.”
