Khorezm to Host Largest Green Aviation Fuel Project

Tashkent, Uzbekistan (UzDaily.com) — Allied Biofuels FE LLC and the Khorezm regional administration have signed a Project Implementation Agreement (PIA), formalizing the commitments of both parties to launch a large-scale clean energy project.

The document is based on a corresponding decree by the President of the Republic of Uzbekistan, which granted the project special economic zone status. This status provides for tax and customs preferences, establishing a stable institutional and investment foundation for its execution.

The project involves the construction of Central Asia's first integrated complex for the production of sustainable aviation fuel (SAF), electro-synthetic fuel (e-SAF), and "green" diesel. Upon reaching full capacity, the facility will annually produce approximately 160,400 tons of SAF, 257,000 tons of e-SAF, and over 5,000 tons of renewable diesel. Total investments are estimated at $6.08 billion, with a realization horizon spanning five years.

The technological concept of the project includes the creation of renewable energy infrastructure with a capacity of 4.45 GW, including energy storage systems and electrolyzers for the production of green hydrogen. Plug Power serves as the technological partner for the supply of electrolysis equipment. A key feature of the project will be its closed-loop production cycle, incorporating the capture and processing of biogenic carbon dioxide, as well as the daily use of significant volumes of agricultural raw materials. This will ensure the enterprise meets high international standards for environmental sustainability and carbon footprint minimization.

The signing of the agreement took place on April 2, 2026, in Perth, Australia. The document was signed by the Khokim of the Khorezm region, Jurabek Rakhimov, and the Chairman and CEO of Allied Biofuels, Alfred Benedict. As noted by the head of the region, the implementation of the project will contribute to the formation of a high-tech industrial chain, the introduction of advanced "green" technologies, the creation of new jobs, and the expansion of export potential.

In turn, the company’s management emphasized that the agreement opens a new stage in the development of the project and strengthens confidence among international investors. It is expected that approximately 2,000 jobs will be created during the construction phase, and in the long term, the project will provide a significant contribution to the socio-economic development of the region. Affinity Capital Group acted as the transaction advisor. The implementation of this project is regarded as a major step toward strengthening Uzbekistan's position in the global clean energy industry and forming a new center for green industry in Central Asia.