In a groundbreaking move for Central Asia, Uzbekistan has announced plans to build the region’s first plant dedicated to producing sustainable aviation fuel (SAF).  The facility will be constructed in the Tuprakkala district of Khorezm region and is being developed by international firm Allied Biofuels, with an estimated investment of $5.9 billion, according to Fergana news agency.

The project was formalized during the International Investment Forum in Khiva, where Allied Biofuels CEO Alfred Benedict and Khorezm Regional Governor Jurabek Rahimov signed an agreement to initiate the venture. As part of the deal, local authorities have allocated land for the plant and committed to providing access to water supply systems.

Once completed, the facility will be the first fully integrated biorefinery of its kind in Central Asia. Annual production is expected to include 382,000 tons of SAF, 152,000 tons of electro-synthetic fuel (e-SAF), and 11,000 tons of renewable diesel produced using green hydrogen generated via 2 GW electrolysis.

According to Allied Biofuels representatives, the project aligns with Uzbekistan’s national strategy to achieve carbon neutrality by 2030. It is also seen as a significant step toward reducing the country’s dependence on fossil fuels.

Allied Biofuels CEO Alfred Benedict described the agreement as “historic” for the company. Governor Rahimov emphasized that the project would strengthen Khorezm’s position as a leading region in the field of green energy. He also highlighted the initiative’s potential to generate hundreds of new jobs and make a meaningful contribution to the local economy.

Allied Biofuels was officially registered in Uzbekistan in July this year. The company is headed by Benedict, who also leads Australian-based Allied Green Ammonia. Earlier in 2024, Allied Biofuels signed a memorandum of understanding with the Uzbek government, expressing its intent to invest around $5.5 billion in renewable energy initiatives across the country.

Previously, regional officials briefed President Shavkat Mirziyoyev on the project, outlining initial investments of $820 million. They also proposed installing 4 GW of solar panels over 5,500 hectares to supply energy for the plant.