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X2E is diversifying its fuel value chain: Omani-British green energy venture X2E is set to invest USD 1.6 bn into alternative fuel projects over the next two years, Founder and CEO John Jones told Zawya Projects in an interview last week. The company plans to initiate projects for the production of biodiesel, sustainable aviation fuel (SAF), and Camelina oil.
What is Camelina oil? A newcomer to the alternative fuel scene, camelina oil is now being considered for use in biodiesel and jet fuel production after studies found it releases fewer greenhouse gas (GHG) emissions than other feedstock crops. The oil produces 40% to 60% less emissions than petroleum diesel and the plant has a relatively short growing season and a higher tolerance to cold, arid conditions.
X2E plans to vertically integrate its production line: X2E is aiming for vertical integration with its affiliates who manage feedstock cultivation, water recycling, seed extraction, and refinery processes, Jones said. The plans include having the water company Sayyala work on wastewater treatment, FEI on irrigation, OMAB — its agriculture and pharmaceuticals arm — on seed extraction using high-tech pharma products, and G2X to capture waste gasses.
Some investors are interested: Unnamed investors are contributing USD 18 mn to Sayyala and between USD 3.5-4 mn for farming practices.It will take about 2.5 years from the start date to get the projects up and running, and the first capital close is slated for 2Q 2024.
And there’s more partnerships in the pipeline:The company is also collaborating with Omani carbon storage tech startup 44.01 to store excess CO2 emissions. The two entities will establish a JV called G2X, which will capture, process, and permanently store waste gases. Jones also teased an upcoming water treatment project with an Omani oil and gas company for growing Camelina, Canola and cereal crops, but no further details were given.
Along with expansion plans: X2E is planning to buy four biodiesel plants including one in the US, one in Portugal, and two in Dubai for a total of USD 106 mn, Zawya writes. The four plants will aim to produce 75k cubic meters of B100 annually. They hope to finalize the financial aspects by the end of the first quarter of this year. X2E is also in talks with landowners in Africa and Malaysia on contract farming of Camelina.
Not the first biofuel venture for X2E: Oman’s first biofuels producer Wakud announced last June that it will establish a plant with a capacity of 250 tons per day at an investment cost between USD 120-150 mn in partnership with X2E. The plant, which will be set up in the country’s Khazaen Economic City, comes as part of a plan by Wakud to boost its production capacity tenfold.
