UK's HutanBio to build its first desert-based algae biofuel facility by 2026

UK-based algae biofuel developer HutanBio plans to break ground in the second quarter of 2026 on its first commercial-scale biofuel facility in a desert region, moving from pilot validation to deployment of its HBx Energy Platform.

The upcoming 3- to 5-hectare facility will be located on non-arable desert land, using a seawater-based cultivation system that requires no freshwater or agricultural inputs, HutanBio said in a statement Oct. 16.

The site will produce net-negative bio-oil compatible with existing refining and transport infrastructure at costs comparable to used cooking oil-based feedstocks, according to the company.

"We're moving from validation to deployment," Brittany Hook, the company's newly appointed chief commercial officer, said in the statement.

According to the company, 1 sq km of cultivation can yield about 4,500 metric tons/year of bio-oil while removing 25,000 mt of CO₂ from the atmosphere.

The modular system uses CO₂ and sunlight to produce biofuels for marine, aviation and heavy transport sectors facing increasing decarbonization mandates under frameworks such as the Carbon Offsetting and Reduction Scheme for International Aviationand the EU Emissions Trading System.

The announcement follows an independent life cycle assessment published in May that confirmed HutanBio's HBx microalgal biofuel achieves net-negative carbon emissions, removing more CO₂ from the atmosphere than it emits over the course of production.

Sustainability consultancy EcoAct conducted the LCA, which found the process removes up to 1.48 mt of CO₂ equivalent/mt of biofuel in Morocco and up to 5.78 mtCO₂e/mt across all planned sites, including the Middle East and Western Australia.

Afterward, HutanBio identified Morocco as the most efficient production site due to its strong renewable energy mix and optimized logistics.

The LCA also identified emissions hotspots, such as materials used in photobioreactor construction and refining, which the company is addressing to further reduce life cycle emissions.

Platts, part of S&P Global Energy, assessed the European SAF-jet fuel spread at $1,377.45/mt on Oct. 17, up $2.18 day over day.