UAE implements tax on UCO exports

The UAE’s Ministry of Economy recently imposed an export tax of AED 400/mt ($109/mt) on used cooking oil (UCO) from the country.

PHOTO: Bunker barge at berth in Fujairah, UAE. Port of Fujairah

The export tax will discourage UCO exports out of the country, Neutral Fuels founder Karl W. Feilder wrote on LinkedIn. Neutral Fuels, a biofuel producer based in the UAE, typically sources UCO from restaurants throughout the country and processes it into used cooking oil methyl ester (UCOME) at two factories in Abu Dhabi and Dubai.

UCO is typically reacted with methanol as a catalyst to produce UCOME. Many bio-bunker blends sold across the globe are derived from UCOME and can qualify for Proof of Sustainability (PoS) documentation, which is used to verify the sustainability of feedstocks and energy inputs.

UCO has a high fatty acid content and can also be used as a feedstock to produce hydrotreated vegetable oil (HVO).

The UAE's export tax might increase the availability of UCO and UCOME for bio-bunker blending, potentially resulting in reduced prices for bio-bunker grades at UAE ports such as Fujairah.

By Nithin Chandran

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