McDonald’s UAE and privately held Neutral Fuels have formed a JV to produce biodiesel using recycled vegetable oil from the fast-food retailer’s outlets in the UAE.

The plant will be the first licensed facility to make biodiesel in the Gulf and will have an annual output capacity of 1 million litres (264,000 gallons).

Chairman of London-based Neutral Group, the parent of Neutral Fuels, Karl Feilder said the JV was “taking away the need to import diesel”.

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McDonald’s UAE uses more than 20,000 liters of vegetable oil at 90 restaurants, managing director Rafic Fakih said. It will convert all its delivery trucks to biodiesel as part of the programme.