Green fuel: UAE retail giant LuLu now runs delivery fleet with biodiesel from used cooking oil

Time of India

07-06-2025

LuLu's delivery trucks and vans run on biodiesel refined from used cooking oil collected across its UAE stores/ Image courtesy: Gulf News
LuLu Group, one of the UAE's largest retail chains, has begun powering its delivery fleet with biodiesel made from used cooking oil collected across its stores. This move is part of the company's broader sustainability strategy and supports the UAE's national vision of net-zero emissions by 2050.
The initiative is the result of a strategic partnership with UAE-based clean energy company Neutral Fuels, which processes the used cooking oil into biodiesel. This low-emission fuel is now powering an increasing share of LuLu's delivery trucks, directly reducing greenhouse gas emissions on UAE roads.
In a statement, LuLu Group said,
'
This proves that practical, everyday actions can lead to measurable environmental benefits without compromising efficiency or service.'
How the biodiesel is made: From waste to fuel
The process begins with collecting used cooking oil from LuLu's in-store kitchens, restaurants, food courts, and catering partners. The oil is filtered to remove food residues and then sent to processing plants where it undergoes transesterification, a chemical reaction involving methanol and a catalyst. This reaction produces two byproducts: biodiesel, and glycerin.
Unlike conventional diesel, biodiesel made through this method is biodegradable and emits fewer harmful pollutants.
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According to LuLu, their fleet mostly uses blends of biodiesel to balance fuel performance and emissions reduction.
The advantages are clear:
Lower
Carbon Emissions
: Because the oil originates from plants, its carbon output is largely offset by the carbon those plants absorbed, contributing to a near carbon-neutral cycle.
Less Air Pollution: It significantly reduces sulfur oxides, carbon monoxide, and particulate matter—key urban pollutants.
Waste Management: It repurposes a major waste stream that would otherwise contaminate water or soil.
Economic & environmental gains with nationwide impact
Beyond the environmental benefits, the program has economic implications. By building a biodiesel supply chain, collection, cleaning, processing, and distribution, LuLu helps generate local green jobs. It also reduces reliance on fossil fuels, contributing to the UAE's energy security.
LuLu's fleet plays a crucial logistics role across the UAE, transporting goods daily in dense urban areas. Switching to biodiesel has directly cut emissions in these high-traffic zones, making a noticeable difference in air quality and environmental impact.
However, the path hasn't been without hurdles:
Supply Volume Constraints: Collecting enough used oil consistently is a logistical challenge.
Infrastructure: Expanding processing capabilities requires investment.
Vehicle Compatibility: Not all engines are optimized for high biodiesel blends.
LuLu is addressing these issues by investing in research, building strategic partnerships, and ensuring quality standards are rigorously met before the fuel is used.
LuLu's broader green vision
Biodiesel is just one pillar of LuLu's Environmental, Social, and Governance (ESG) efforts. Other key initiatives include:
Plastic Waste Reduction: Over 90% reduction in plastic bag usage across stores, replaced by reusable alternatives.
Reverse Vending Machines: Installed in stores to encourage customers to recycle plastic bottles and cans, rewarding participation.
Green Logistics: Use of energy-efficient, green chiller vehicles for transporting fresh food, maintaining both food safety and emission reduction.
Eco Packaging: Rollout of biodegradable and reusable packaging.
Energy Efficiency: Adoption of energy effecient lighting and refrigeration across stores.
Community Outreach: Programs that promote environmental education and responsible consumption among customers and employees.
These programs reflect LuLu's long-term commitment to environmental stewardship and community awareness.
A model for UAE's renewable future
The UAE government has placed sustainability at the core of its Vision 2030 and 2050 Net Zero Strategy. Biodiesel from used cooking oil aligns with national priorities by enabling a circular economy and reducing emissions from key sectors like transport and retail.
As the infrastructure for biodiesel grows and public awareness improves, other companies may follow LuLu's lead. The LuLu-Neutral Fuels model is not just a corporate initiative, it's a proof of concept for how sustainability and business efficiency can work hand in hand.