High interest in Fujairah biofuels

27 May 2015

Banks surveyed on financing project

  • Banks surveyed on financing Fujairah biofuels refinery show interest
  • A tender on the $1.3bn project is expected soon

Banks are showing strong interest in financing Dubai-based Petrixo Group’s $1.3bn biofuels refinery in Fujairah.

“From our soft market sounding of 15 regional and international banks, 60 to 70 per cent showed a high interest” said Afaq Mufti, project and infrastructure finance leader at PwC. “They have the liquidity so the market is very much out there, but they need long term policies in place.”

Mufti was speaking at the 6th Green Economy Annual Conference in Dubai.

A tender for the main contract to construct the facility is expected soon. It will have the capacity to produce 1 million tonnes a day (t/y) of fuel by processing agricultural feedstocks imported to the port on the UAE’s Gulf of Oman coast.

The budget has increased significantly from $800m to a current expected investment of more than $1.3bn.

MEED was told in February that the project was close to reaching a financial close by Petrixo’s CEO.

US-based Honeywell is the technology provider, while their compatriots Fluor have completed design work.

Petrixo Group is part of the diversified Saif Belhasa Holding, founded and chaired by Emirati entrepreneur Saif Belhasa.

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