Lootah Biofuels and AlgaOil collaborate

Dubai-based alternative fuels company Lootah Biofuels and AlgaOil, a Philippines-headquartered algae production company, have signed a Memorandum of Understanding (MoU) to develop algae-derived biofuels.

The partnership, which will involve the construction of a biodiesel production plant in Dubai, will bring together Lootah's local knowledge and engineering specialities with AlgaOil's existing infrastructure for algae cultivation. The project will involve microalgae R&D before converting it into high oil content raw material for biodiesel.

'In line with UAE'svision for sustainable development, 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,' Lootah Biofuels CEO Yousif Lootah was reported to have said.

Klaus Dieter, CEO of AlgaOil, was quoted as saying: 'Keeping in mind the extensive need for alternative fuels, we are confident that working together will bring optimal solutions to the most challenging opportunities for sustainability.'

Following the initial start-up, large-scale production of algae oil for biodiesel will begin in Dubai between six to 18 months.