US catalysts producer Grace is working with UAE-based Al-Dahra Agricultural Company to build the Middle East’s first fluid catalytic cracking (FCC) catalysts and additives plant.

The partners have signed a memorandum of understanding (MOU) to build a plant in Abu Dhabi to supply oil refiners in the Middle East and South Asia.

FCC catalysts are used in refineries to produce high-octane gasoline and fuel oils.

Grace said there are expected to be 16 FCC units built in the Middle East and South Asia in the next five years, creating a $150m market for catalysts.

The joint-venture project between Grace and Al-Dahra is expected to come on stream by the end of 2015.