Uzbekistan Signs $5.9 Billion Deal to Build Central Asia’s First Green Aviation Fuel Plant

Allied Biofuels FE LLC Uzbekistan has signed key land and water agreements with the Khorezm regional government, marking a significant step toward building Central Asia’s first integrated biorefinery for zero-carbon aviation fuel. The announcement was made during the International Investment Forum in Khiva, where Khorezm Governor Jurabek Rakhimov met with a company delegation led by Chairman and Managing Director Alfred Benedict. The $5.9 billion project will be located in Tuproqqal’a district in the city of Khorezm, and aims to establish a climate-aligned aviation fuel supply chain in Uzbekistan. Once operational, the facility is expected to produce 382,000 tonnes of Sustainable Aviation Fuel (SAF), 152,000 tonnes of Electro-Synthetic SAF (e-SAF), and 11,000 tonnes of renewable green diesel annually. The refinery will be supported by 2 GW of PEM electrolysers, making it one of the largest initiatives of its kind in the region. Benedict described the agreements as “a landmark moment for Allied Biofuels and for Khorezm,” emphasizing that the project combines international expertise with local support to help Uzbekistan achieve its net-zero emissions target by 2030. “This facility will not only supply sustainable aviation fuel at scale but also foster economic growth in the region,” he said. Uzbekistan has committed to becoming carbon-neutral by the end of the decade, and the Khorezm biorefinery is expected to play a central role in that transition. By producing zero-carbon fuels for transport and industry, the project aims to reduce fossil fuel dependency and lower greenhouse gas emissions. Rakhimov welcomed the decision to site the project in Khorezm, highlighting its significance for regional development. He stated that the initiative will create hundreds of skilled jobs, strengthen Khorezm’s position as a hub for green energy, and boost the local economy. Rakhimov also pledged to personally oversee the allocation of land and infrastructure needed to ensure successful implementation.