Allied Biofuels and Sinopec Sign US$6.1 Billion SAF Deal

Tashkent, Uzbekistan (UzDaily.uz) — Within the framework of the 5th Tashkent International Investment Forum, Allied Biofuels signed a contract with the Chinese corporation Sinopec Engineering Group Co., Ltd. to perform Front-End Engineering Design (FEED) and detailed engineering, with a subsequent rollover to the Engineering, Procurement, and Construction (EPC) stage, for a large-scale project to produce Sustainable Aviation Fuel (SAF) and synthetic sustainable aviation fuel (e-SAF) in Uzbekistan.

The signed agreement marks the transition of the project from the conceptual development stage to the detailed design and construction preparation phase. In accordance with the contract, Sinopec Engineering Group will be responsible for executing a complex of pre-project works, developing detailed engineering documentation, systems integration, as well as preparing cost documentation on an Open Book basis for the refinery complex, renewable energy facilities, and associated infrastructure.

The agreement comes against the background of rapid growth in the global sustainable aviation fuel market and an intensifying international course toward the decarbonization of the aviation industry. Many countries are implementing projects for the industrial production of SAF, as well as introducing innovative technologies to reduce the carbon footprint of air transport.

The Allied Biofuels project will become the first large-scale, fully integrated complex for the production of SAF and e-SAF in Central Asia. The total volume of investments in its implementation is estimated at approximately US$6.1 billion.

The production complex will combine biomass processing, advanced refining technologies, the integration of renewable energy sources, and Power-to-Liquid solutions within a single industrial platform. After commissioning, the enterprise will supply environmentally friendly aviation fuel to both the domestic market of Uzbekistan and international consumers.

Sinopec Engineering Group is expected to leverage its competencies in the areas of oil refining, biofuel production, green hydrogen, and the creation of complex industrial infrastructure to develop an integrated design solution tailored to the specific nature of the project.

The implementation of the agreement will contribute to expanding international cooperation in the field of low-carbon manufacturing, strengthening the position of Uzbekistan as one of the emerging centers of sustainable aviation and clean energy, and enhancing the role of Central Asia in the global energy transition of the aviation industry.

Alfred Benedict, Managing Director of Allied Biofuels, noted that the signing of the contract is an important milestone in the development of the project.

"This agreement marks a key step in advancing our SAF and e-SAF project in Uzbekistan from development into engineering and execution readiness. 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," Benedict emphasized.

In turn, Gong Yu, Regional Business Development Manager of Sinopec Engineering Group, stated that the company intends to use its international engineering experience for the successful realization of the project.

"Sinopec Engineering Group is pleased to support Allied Biofuels on this important clean fuels project in Uzbekistan and looks forward to contributing its engineering experience to the project's next stage of development," the company representative noted.

According to expert estimates, the implementation of the project will create a world-scale manufacturing platform in Uzbekistan for the production of sustainable aviation fuel, capable of satisfying the growing demand for SAF and e-SAF both in Central Asia and on global markets.

The project is also viewed as a significant contribution to achieving international climate goals and developing new directions of the green economy, which aligns with the long-term strategy of Uzbekistan for transition to low-carbon development and attracting investments into modern, ecologically oriented industries.