Pact inked for first Sustainable Aviation Fuel project in Oman

MUSCAT: US-based carbon recycling firm LanzaTech has signed an agreement with the International Finance Corporation (IFC), the private-sector arm of the World Bank Group, to collaborate on the development of the first-ever Sustainable Aviation Fuel (SAF) project in the Sultanate of Oman.
LanzaTech CEO Jennifer Holmgren said the proposed project aims to convert waste industrial gases in Oman into valuable ethanol, which can then be refined into sustainable aviation fuel - enabling aircraft to fly on recycled carbon instead of fossil fuels.
“I recently had the privilege of signing a landmark agreement that sets a bold new course for aviation and climate action in Oman,” Holmgren said. “Oman is fast becoming a leader in the circular carbon economy - showing how industrial expertise and forward-thinking policies can turn waste carbon into valuable products. In the GCC, countries like Oman and Saudi Arabia are paving the way for a future where carbon is recycled and reused, unlocking new possibilities to make circular carbon a reality,” she stated in a post.
Stage 1 is currently underway, with LanzaTech and the IFC conducting a joint feasibility study that includes detailed assessments of feedstock and product markets, CAPEX projections, and financial modelling - all aimed at defining a clear route to FID and project execution.
Illinois-based LanzaTech’s technology will be central to producing SAF in Oman. Its biorecycling process captures carbon-rich gases directly from energy-intensive industrial sites, preventing their release into the atmosphere. The recovered carbon is then converted into sustainable alternatives to fossil-derived materials, with applications ranging from detergents and textile fibres to packaging and transportation fuels.
At present, around six commercial plants worldwide are operating based on LanzaTech’s platform. The company says it is building a strong new value chain - recycling carbon into ethanol and then into SAF - and believes Oman has the right conditions to emerge as a regional and potentially global hub for circular carbon solutions.
According to Holmgren, the SAF project will have a “real measurable impact” for Oman. “Projects like this have the potential to produce 80,000 tonnes of SAF annually, advancing Oman Vision 2040, creating jobs, and supporting economic diversification,” she noted.
“SAF is expected to deliver over 60% of aviation’s CO₂ reductions by 2050. If just 15–20 more plants of this scale are built globally, we could see more than 1.5 million tonnes of sustainable fuel produced each year — 50% more than last year’s global SAF output. That’s the transformative scale the world needs,” the CEO remarked.
Oman’s abundant access to diverse carbon-rich feedstocks, coupled with world-class industrial infrastructure, positions the country ideally to pioneer circular carbon solutions. This initiative, the company added, reinforces Oman’s role as a regional trailblazer in carbon circularity.
Underscoring the significance of the proposed project for Oman, IFC commented: “The project is in line with the Oman Vision 2040 agenda for sustainable manufacturing, economic diversification, and job creation — an essential pillar of the World Bank Group’s mission in the country. This collaboration reflects IFC’s continued expansion in Oman following landmark agreements announced during the World Bank Group Day last year.”