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.

Allied Biofuels Advances $6.1 Billion Sustainable Aviation Fuel Project in Uzbekistan

Allied Biofuels has signed a key engineering agreement with Sinopec Engineering Group Co., Ltd. for its planned sustainable aviation fuel (SAF) and electro-synthetic sustainable aviation fuel (e-SAF) project in Uzbekistan, marking another step forward for one of Central Asia’s largest clean energy developments. The agreement was signed during the 5th Tashkent International Investment Forum. Under the front-end engineering design and detailed engineering contract, Sinopec Engineering Group will undertake front-end engineering and design, detailed engineering, systems integration, and cost development work for the project, laying the groundwork for a future engineering, procurement, and construction (EPC) contract. The project, valued at approximately $6.1 billion, is expected to become Central Asia’s first large-scale integrated bio-aviation fuel complex. According to Allied Biofuels, the facility will combine biomass processing, advanced refining technologies, renewable energy systems, green hydrogen production, and power-to-liquid fuel technologies within a single industrial platform. Once operational, the complex is expected to supply sustainable aviation fuels to both domestic and international markets at a time when airlines worldwide are seeking lower-carbon alternatives to conventional jet fuel. The signing comes amid growing global investment in SAF production as governments and aviation companies work to reduce emissions from air transport. The project is expected to reinforce Uzbekistan’s ambitions to become a regional center for sustainable aviation and clean fuel production. “This agreement marks a key step in advancing our SAF and e-SAF project in Uzbekistan from development into engineering and execution readiness,” said Alfred Benedict, managing director of Allied Biofuels. “Sinopec Engineering Group’s technical capability will help strengthen the project’s delivery pathway as we progress one of Central Asia’s most important clean fuels infrastructure developments.” Gong Yu, regional business development manager at Sinopec Engineering Group, said the company was pleased to support the project and contribute its engineering expertise to the next phase of development. Sinopec Engineering Group, headquartered in Beijing, is one of China’s leading engineering companies, with experience in refining, biofuels, green hydrogen, and large-scale industrial infrastructure projects. Under the contract, the company will provide engineering design, systems integration, and estimating services for the Uzbekistan facility. The latest agreement follows another milestone announced in May, when Uzbekistan Airports and Allied Biofuels FE LLC signed a memorandum of understanding on the future supply of SAF and e-SAF in Uzbekistan. The agreement outlined plans to begin supplying cleaner aviation fuels from 2030 and included cooperation on developing the necessary infrastructure and supply chains. According to Allied Biofuels, the refinery is expected to produce approximately 160,400 tonnes of SAF, 257,000 tonnes of e-SAF, and 5,040 tonnes of green diesel annually. The facility is also planned to operate using a 4.45-gigawatt renewable energy system supported by battery storage and green hydrogen infrastructure, making it one of the most ambitious clean fuel projects currently under development in the region.