MUSCAT: Underscoring growing, domestic customer demand for alternative fuels, leading fuel marketing company Oman Oil Marketing Company SAOG (OOMCO) has revealed that it achieved sales of over two million litres of biodiesel in Oman during 2024.

It marks the first successful year of commercial-scale biodiesel sales by a fuel marketing company in Oman. In 2023, publicly listed OOMCO, part of OQ Group, became the first fuel retailer in the country to launch biodiesel as a low-carbon alternative to conventional diesel.

Well-known Omani start-up Wakud, which operates the country’s first biodiesel refinery at Khazaen Economic City, is a key supplier of the low-carbon diesel to OOMCO. Typical corporate customers for biodiesel in Oman are oil and gas companies with large passenger and freight transportation fleets, operators of heavy machinery used in mines and quarries, shipping and marine companies, trucking and logistics firms, and a growing number of public and private sector firms demonstrating their commitments to sustainability.

“In 2024, OOMCO successfully sold over 2 million litres of biodiesel (B5 and B20) to meet growing customer demand for alternative fuel solutions,” said Tarik bin Mohammed al Junaidi, Chief Executive Officer, in the company’s 2024 MDA report. B5 and B20, the most popular brands, represent a blend of 5 per cent and 20 per cent of pure biodiesel with 95 per cent and 80 per cent respectively of petroleum diesel.

Significantly, the domestic uptake of biodiesel – while minuscule compared to the Americas, Europe and Southeast Asia – is still notable, given the relatively nascency of the clean fuels market in Oman. A small handful of biodiesel producers in Oman, who mainly use waste cooking oil as raw material, find themselves up against a major cost-disadvantage. With conventional diesel marketed with an in-built government-provided subsidy, the only takers for premium-priced biodiesel are predominantly companies committed to ESG standards and Net-Zero goals.

The successful introduction of biodiesel is one of several initiatives launched by OOMCO in support of national carbon reduction efforts. Also during 2024, solar energy systems were installed at 12 service stations operated by the company, generating around 1.9 GWh of clean electricity, while reducing 1,350 tonnes of CO2 emissions.

In addition, OOMCO has successfully installed a total of 23 Vapour Recovery Units (VRUs), which capture fuel vapours during loading and unloading of fuel at service stations. These units helped reduce around 1,242 tonnes of CO2 emissions.

Leveraging its extensive network of service stations – numbering 237 across the country – OOMCO’s joint venture, EVO, expanded the roll-out of charging stations. By the end of the year, a total of 133 charging points had been installed at 66 locations, including along major highways, around Oman.

According to Al Junaidi, CEO, green hydrogen-based initiatives were also unveiled in 2024. “Further reinforcing its role in green hydrogen development, OOMCO was awarded a strategic position as a hydrogen producer, in collaboration with the Ministry of Transport, Communications and Information Technology. In green mobility, the company launched two key initiatives, partnership with talabat Oman for e-bike last-mile delivery solutions, and the Hydrogen-based transportation projects supporting Oman’s National Green Corridor initiative,” he added.

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