Uzbekistan’s $6.1 Billion Sustainable Aviation Fuel Project Enters Design Phase

A $6.1 billion sustainable aviation fuel (SAF) complex planned for Uzbekistan’s western Khorezm region has entered the engineering design stage. Developer Allied Biofuels expects to decide whether to proceed with construction in the first quarter of 2027. Established in Uzbekistan in 2025, the company convened a September 18 meeting in Ningbo, China, with its main engineering and technology partners, Sinopec Engineering Group, Denmark’s Topsoe, South Africa’s Sasol, and U.S.-based Plug Power. The meeting covered the integration of their technologies, plant design, cost estimates, and the construction timetable. Allied Biofuels expects to complete this stage before making a final investment decision (FID). An FID is the point at which a developer commits capital and proceeds with construction. Until then, the $6.1 billion remains the project’s estimated cost rather than funding already secured. Sinopec is responsible for front-end engineering design, systems integration, detailed engineering, and cost development. Allied Biofuels and Sinopec signed the engineering contract at the Tashkent International Investment Forum in June. The agreement is structured to become an engineering, procurement, and construction contract if the complex goes ahead. Topsoe and Sasol are providing technologies for electro-synthetic sustainable aviation fuel (e-SAF), which is made using renewable hydrogen and captured carbon. Plug Power is expected to supply up to 2.4 GW of electrolyzer systems for hydrogen production. The complex would require an unusually large amount of renewable power, with plans calling for 4.45 GW of renewable generation and 1,600 MWh of battery storage. The developers intend to combine electricity and hydrogen production, biomass processing, and fuel production at a single site. At full capacity, Allied Biofuels expects the complex to produce around 160,000 tons of SAF, 257,000 tons of e-SAF, and 5,000 tons of renewable diesel annually. The development comes as Europe mandates greater use of SAF. Since 2025, aviation fuel suppliers in the European Union have been required to ensure that SAF accounts for at least 2% of the fuel supplied at covered EU airports. That year, EU airports received 1.1 million tons of SAF, almost six times the amount supplied a year earlier. In 2030, the overall share is set to rise to 6%, including a minimum 1.2% for synthetic aviation fuels. E-SAF remains difficult to produce at commercial scale. Around 50 synthetic aviation fuel projects in Europe are still awaiting final investment decisions, according to the European Commission. Germany, Austria, and Luxembourg are preparing a pilot auction scheme backed by more than €2.1 billion to help bring them to market. Allied Biofuels is already developing routes to deliver fuel from the planned complex in Uzbekistan to foreign markets, an important consideration for the landlocked country.

Uzbekistan Airports Signs Sustainable Aviation Fuel Deal Tied to $6 Billion Biofuel Project

Uzbekistan Airports and Allied Biofuels FE LLC have signed a memorandum of understanding on the supply of sustainable aviation fuel (SAF) and electro-synthetic sustainable aviation fuel (e-SAF) in Uzbekistan. The agreement outlines plans for cooperation on the supply of cleaner aviation fuel beginning in 2030. The move is part of Uzbekistan’s broader effort to position itself as a regional hub for sustainable aviation and low-carbon transport infrastructure. Under the memorandum, the two sides will work together to develop supply chains and infrastructure for SAF and e-SAF, which are intended to help reduce aviation emissions. Allied Biofuels is developing what it describes as Central Asia’s first integrated large-scale biorefinery. Once fully operational, the facility is expected to produce around 160,400 tonnes of SAF, 257,000 tonnes of e-SAF, and 5,040 tonnes of green diesel annually. The project, estimated at $6.1 billion, is among the largest clean energy infrastructure initiatives announced in the region. According to the company, the refinery will operate using a 4.45-gigawatt renewable energy system supported by battery storage and green hydrogen production infrastructure. U.S.-based Plug Power has been selected as the preferred supplier of electrolyzer technology for the project. Javlonbek Umarkhodjaev, chairman of the board of Uzbekistan Airports JSC, said the partnership represents an important step toward modernizing the country’s aviation sector and exploring sustainable fuel alternatives. Alfred Benedict, general director of Allied Biofuels, described the memorandum as a major milestone for the company and said the cooperation could support the future development of cleaner air transport across Central Asia. Allied Biofuels said the project continues to receive support from Uzbekistan’s Ministry of Investment and Foreign Trade and the country’s Investment Promotion Agency. The memorandum follows an earlier announcement reported by The Times of Central Asia in April, when Uzbekistan signed a binding implementation agreement for the same $6.08 billion biofuel project in the Khorezm Region. The agreement was concluded in Perth, Australia, between Khorezm regional authorities and Allied Biofuels.