In a landmark move toward sustainable aviation, US-based carbon recycling pioneer LanzaTech has formalized an agreement with the International Finance Corporation (IFC)—the private-sector arm of the World Bank Group—to develop the Sultanate of Oman’s inaugural project for producing Sustainable Aviation Fuel (SAF), reported Oman Daily Observer.
Turning Industrial Waste into Flight Fuel
The proposed initiative is set to redefine Oman’s role in the global energy transition. LanzaTech’s proprietary biorecycling technology will be employed to capture and transform waste gases from Omani industrial sites into valuable ethanol. This ethanol will then undergo further refinement to create Sustainable Aviation Fuel (SAF), effectively enabling aircraft to operate on recycled carbon instead of conventional fossil fuels.
Jennifer Holmgren, CEO of LanzaTech, described the signing as establishing a “bold new course for aviation and climate action in Oman.” She emphasized that Oman is rapidly positioning itself as a leader in the circular carbon economy, showcasing how strategic policies and industrial expertise can convert carbon waste into high-value products. Holmgren praised nations like Oman and Saudi Arabia within the Gulf Cooperation Council (GCC) for “paving the way” for a future where carbon is consistently reused and recycled.
Feasibility Study Underway for Project Execution
The initial phase of the partnership is currently in motion. LanzaTech and the IFC are jointly undertaking a comprehensive feasibility study. This crucial assessment includes a detailed analysis of potential feedstocks, projected product markets, capital expenditure (CAPEX) estimates, and in-depth financial modelling. The collective goal is to clearly define the pathway to a Final Investment Decision (FID) and subsequent project execution.
LanzaTech’s core strength lies in its biorecycling platform, which intercepts carbon-rich gases directly at energy-intensive industrial facilities before they can be released into the atmosphere. The recovered carbon is then converted into sustainable alternatives for various materials, ranging from packaging and textiles to transportation fuels like SAF. The company currently operates approximately six commercial plants globally utilizing this platform.
Massive Potential for Economic and Climate Impact
LanzaTech believes Oman offers the optimal conditions to evolve into a regional, and potentially international, hub for circular carbon solutions. The new value chain—recycling carbon into ethanol, and then into SAF—is projected to have a “real measurable impact” on the Sultanate.
According to Holmgren, a project of this scale has the capacity to produce 80,000 tonnes of SAF annually. This output would significantly advance the objectives of Oman Vision 2040 by simultaneously creating new jobs and supporting the nation’s broader economic diversification agenda.
The CEO highlighted the transformative necessity of such ventures, noting that SAF is anticipated 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,” Holmgren stated.
Oman is uniquely suited for this pioneering role due to its easy access to a diverse array of carbon-rich feedstocks combined with world-class existing industrial infrastructure. This initiative firmly reinforces the country’s status as a regional leader in carbon circularity.
The IFC also affirmed the project’s importance, stating it is “in line with the Oman Vision 2040 agenda for sustainable manufacturing, economic diversification, and job creation.” The collaboration is seen as an “essential pillar of the World Bank Group’s mission” in the country, building on previous landmark agreements.
