Uzbekistan Launches $6 Billion Green Aviation Fuel Project in Khorezm Region

A major agreement has been signed to launch the largest project for producing sustainable aviation fuel (SAF) 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 horizon.

The integrated complex will be the first of its kind in the region, producing approximately 160,400 tons of SAF, 257,000 tons of electro-synthetic fuel (e-SAF), and over 5,000 tons of renewable diesel annually at full capacity. The total investment is estimated at $6.08 billion.

The technological blueprint involves building 4.45 GW of renewable energy infrastructure, including energy storage systems and electrolyzers for green hydrogen production. Plug Power has been named as the technology partner for supplying the electrolysis equipment.

A key feature will be a closed-loop production cycle that captures and processes 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 reduction.

The Project Implementation Agreement was signed on April 2, 2026, in Perth, Australia. The signatories were 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 the agreement marks a new phase in development and strengthens confidence among international investors.

Construction is expected to generate around 2,000 jobs, with long-term operations contributing significantly to the region's socio-economic development. The project is seen as a crucial step in positioning Uzbekistan within the global clean energy industry and establishing a new hub for green manufacturing in Central Asia.