Uzbekistan Secures $6 Billion SAF Deal To Build 160,000-Tonne Clean Aviation Fuel Hub

Published: Monday, April 13, 2026 at 2:19 pm

Uzbekistan to Build Major Sustainable Aviation Fuel Hub with $6 Billion Investment

Uzbekistan is set to become a key player in the sustainable aviation fuel (SAF) market with a significant $6.08 billion agreement to develop a large-scale biofuel complex. The project, located in the Khorezm region, aims to produce over 160,000 tonnes of SAF annually, alongside electro-synthetic fuels and green diesel. This initiative, formalized with Allied Biofuels FE LLC, marks a major step towards decarbonizing the aviation sector and broader transport industries.

The integrated facility will utilize renewable energy sources, agricultural feedstocks, and carbon capture technology to achieve near-zero emission production. This approach, which combines feedstock processing, fuel synthesis, and energy generation, is designed to reduce costs and supply chain volatility. The project's reliance on renewable energy will reduce dependence on fossil fuels and improve the carbon intensity of the fuel output. Furthermore, the use of agricultural inputs and captured carbon emissions aims to create a closed-loop production model, aligning with emerging SAF standards.

This investment positions Uzbekistan as a leader in the emerging SAF market, moving beyond reliance on imports and offset mechanisms. The project reflects a strategic shift towards energy diversification and participation in global climate markets. The location in Khorezm also signals a regional development agenda, aiming to stimulate economic activity outside major urban centers. The agreement, signed in Perth, highlights the growing importance of cross-border collaboration in scaling clean fuel technologies.

For investors, the project underscores the capital-intensive nature of SAF production and the need for long-term policy clarity. For airlines and corporate buyers, expanded production capacity in regions like Central Asia could diversify supply sources.

BNN's Perspective:

This ambitious project in Uzbekistan highlights the growing global momentum behind sustainable aviation fuel. While the scale of the investment is impressive, the success of this venture will depend on effective execution, including securing reliable feedstock supplies and navigating regulatory landscapes. The project's focus on renewable energy and carbon capture is encouraging, and if successful, could serve as a model for other emerging economies looking to participate in the low-carbon fuel economy.

Keywords: Sustainable Aviation Fuel, SAF, Uzbekistan, Biofuel, Renewable Energy, Green Diesel, Aviation Decarbonization, Carbon Capture, Khorezm, Allied Biofuels, Central Asia, Electro-Synthetic Fuels, Clean Fuel, Investment, Energy Diversification, Climate Markets

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