Uzbekistan advances $5.9bn green aviation fuel project with Khorezm agreements

Allied Biofuels FE Uzbekistan has secured land and water agreements with the Khorezm Regional Government to advance a $5.9bn biorefinery project in Tuproqqala District, set to become Central Asia’s first fully integrated facility for sustainable aviation fuels, supporting Uzbekistan’s net-zero goals and regional economic growth.

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Allied Biofuels FE Uzbekistan has signed land and water agreements with the Khorezm Regional Government to advance a $5.9bn project to build Central Asia’s first fully integrated biorefinery for sustainable aviation fuels.

The facility, planned for the Tuproqqala District, is designed to produce 382,000 tonnes of Sustainable Aviation Fuel (SAF), 152,000 tonnes of Electro-SAF (e-SAF), and 11,000 tonnes of renewable diesel annually. It will also use 2 GW of PEM electrolysers to support production.

The agreements were concluded during the International Investment Forum in Khiva, where Khorezm Governor Jurabek Rakhimov met with a delegation led by Alfred Benedict, Chairman and Managing Director of Allied Biofuels. They discussed next steps for the “Production of Environmentally Friendly Aviation Fuel” project after securing the resources needed for development.

“This agreement is a landmark moment for Allied Biofuels and for Khorezm,” Benedict said. “We are creating a facility that will not only supply sustainable aviation fuel at scale but also help Uzbekistan achieve its ambitious net-zero targets while fostering economic growth in the region.”

The project is part of Uzbekistan’s broader strategy to achieve net-zero emissions by 2030. By producing aviation fuel with a lower carbon footprint, the biorefinery aims to cut emissions from transport and industry.

Officials expect the investment to create jobs in the region and boost Khorezm’s role in the country’s energy transition. Governor Rakhimov said the project would contribute to the regional economy and that he would oversee provision of the necessary land and infrastructure.

Once operational, the facility is expected to supply both domestic and international markets. If completed as planned, it will be the largest of its kind in Central Asia and a test case for how Uzbekistan can link climate policy with industrial development.

Allied Biofuels FE, registered in Uzbekistan, is working with international technology partners to deliver the project.

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