UAE Firms Sign US$6.1 Billion Biofuel Deal in Khorezm

Tashkent, Uzbekistan (UzDaily.uz) — UAE-based companies Allied Biofuels and Deem Engineering have signed an agreement to implement a biofuel production project using hydrogen technologies in the Khorezm region, Dunyo news agency reports.

The volume of foreign direct investment in the project is estimated at US$6.1 billion. Construction of the plant is scheduled for 2026–2030, with full production capacity expected to be reached in the third quarter of 2030.

Upon reaching design capacity, the plant will be capable of producing 110,000 tonnes of aviation biofuel, 300,000 tonnes of power-to-liquid aviation fuel, and 5,000 tonnes of green diesel annually.

About 70% of the output is planned for supply to Uzbekistan Airports, while the remainder is earmarked for export to the Emirates National Oil Company.

Allied Biofuels Chairman Alfred Benedict stated that the company plans to secure BlackRock/Global Infrastructure Partners for partial project financing.

Additionally, Allied Biofuels intends to construct the five-star Alight Hilton Urgench hotel in Urgench and a 300-bed multi-specialty clinic. The medical facility is planned under a Build-Operate-Transfer model, targeting patients from Central Asian countries.

Deem Engineering CEO Muhammad Alfalasi stated that the partnership between Uzbekistan and the UAE has reached a new level. According to him, the project will contribute to the