Uzbekistan to Build Central Asia's Largest Sustainable Aviation Fuel Plant

A major agreement has been signed to launch the largest sustainable aviation fuel (SAF) production project in Central Asia. The deal between Allied Biofuels FE LLC and the Khorezm regional administration sets the stage for a multi-billion dollar investment in Uzbekistan's clean energy sector.

The project, established by a presidential decree as a special economic zone, will benefit from significant tax and customs privileges. This framework is designed to create a stable institutional and investment base for its successful implementation over a five-year period.

The integrated complex will be the first of its kind in the region, producing sustainable aviation fuel (SAF), electro-synthetic fuel (e-SAF), and green diesel. At full capacity, the plant is projected to manufacture approximately 160,400 tons of SAF, 257,000 tons of e-SAF, and over 5,000 tons of renewable diesel fuel annually.

Total investment in the venture is estimated at $6.08 billion. The technological plan involves building a massive 4.45 GW renewable energy infrastructure system. This will include energy storage facilities and electrolyzers for green hydrogen production, with Plug Power serving as the technology partner for supplying the electrolysis equipment.

A key feature of the project is its closed-loop production cycle. It will capture and process biogenic carbon dioxide while utilizing substantial volumes of agricultural feedstock daily. This approach is intended to ensure compliance with high international standards for environmental sustainability and carbon footprint minimization.

The Project Implementation Agreement was signed on April 2, 2026, in Perth, Australia. The document was endorsed by Khorezm Region Hokim Jurabek Rakhimov and Allied Biofuels Chairman & CEO Alfred Benedict.

Regional authorities highlighted that the project will foster a high-tech industrial chain, introduce advanced green technologies, create new jobs, and expand export potential. Company leadership stated that the agreement marks a new phase in the project's development and strengthens confidence among international investors.

During the construction phase alone, about 2,000 jobs are expected to be created. In the long term, the initiative is anticipated to make a substantial contribution to the socio-economic development of Khorezm region.

The project is viewed as a strategic step in strengthening Uzbekistan's position within the global clean energy industry and establishing a new hub for green manufacturing in Central Asia.