Muscat: In a clear indication of growing domestic demand for alternative fuels, Oman Oil Marketing Company SAOG (OOMCO) announced that it sold more than two million litres of biodiesel across Oman in 2024. The achievement marks the country’s first successful year of commercial-scale biodiesel sales by a fuel marketing company, reports Zawya.
OOMCO, a publicly listed entity and part of the OQ Group, made headlines in 2023 when it became the first fuel retailer in Oman to introduce biodiesel as a low-carbon alternative to conventional diesel. The biodiesel is supplied by Wakud, a prominent Omani start-up that operates the nation’s first biodiesel refinery at Khazaen Economic City.
Corporate clients purchasing biodiesel in Oman typically include oil and gas firms with sizable transport fleets, companies operating heavy machinery in mining and quarrying sectors, marine and shipping businesses, as well as logistics providers. There is also a growing interest from both public and private sector organisations committed to sustainability goals.
“In 2024, OOMCO successfully sold over two million litres of biodiesel (B5 and B20) to meet growing customer demand for alternative fuel solutions,” said CEO Tarik bin Mohammed al Junaidi in the company’s 2024 Management Discussion and Analysis report. B5 and B20 are biodiesel blends containing 5% and 20% biodiesel respectively, mixed with petroleum diesel.
While the volume sold remains modest when compared to biodiesel consumption in the Americas, Europe, and Southeast Asia, it is significant for Oman’s still-emerging clean fuels market. Biodiesel producers in the country, who mostly rely on waste cooking oil, continue to face pricing challenges due to government subsidies on conventional diesel. As a result, the primary customers for biodiesel remain companies focused on Environmental, Social, and Governance (ESG) standards and Net-Zero targets.
The sale of biodiesel is part of a broader sustainability strategy implemented by OOMCO. In 2024, the company installed solar energy systems at 12 of its service stations, generating approximately 1.9 GWh of clean electricity and reducing carbon dioxide emissions by 1,350 tonnes.
OOMCO also expanded its deployment of Vapour Recovery Units (VRUs), which help capture fuel vapours during fuel handling at service stations. By the end of the year, 23 VRUs had been installed, contributing to a reduction of approximately 1,242 tonnes of CO2 emissions.
The company’s electric vehicle (EV) infrastructure also saw growth through its joint venture, EVO. By year-end, a total of 133 EV charging points had been installed at 66 service station locations across Oman, including key highway corridors.
Highlighting OOMCO’s ambitions in green hydrogen, Al Junaidi revealed that the company had been awarded a strategic role as a hydrogen producer in collaboration with the Ministry of Transport, Communications and Information Technology. In support of the National Green Corridor initiative, the company also launched two green mobility initiatives in 2024: a partnership with talabat Oman for e-bike last-mile delivery, and hydrogen-based transportation projects.
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