Uzbekistan Signs $6 Billion Biofuel Refinery Execution Agreement
2026-04-13 10:25
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en.Wedoany.com Reported - Allied Biofuels FE LLC and the government of the Khorezm region in Uzbekistan officially signed the Project Implementation Agreement (PIA) on April 2, 2026, in Perth, Australia. This agreement specifies that both parties will invest $6.08 billion to construct and operate Central Asia's first integrated biofuel refinery in Khorezm. Powered by a 4.45-gigawatt renewable energy system, the project aims to produce sustainable aviation fuel (SAF), electro-synthetic SAF (e-SAF), and green diesel on an industrial scale.

According to the agreement, the refinery's investment and construction will be completed over five years. Upon reaching full operational capacity, its annual output is projected to reach 160,400 tons of SAF, 257,000 tons of e-SAF, and 5,040 tons of green diesel. To support production, the facility will be equipped with a 1,600-megawatt-hour battery energy storage system. Plug Power has been selected to provide 2,400 megawatts of electrolyzer technology for green hydrogen production. Currently, the project has received approval via a presidential decree in Uzbekistan and formally entered the framework of a national-level special economic zone, enjoying tax exemptions and customs incentives.

In terms of integrated construction, the plant will adopt a zero-carbon closed-loop industrial model. The facility will consume approximately 5,775 tons of agricultural feedstock daily and capture biogenic carbon dioxide for conversion into e-SAF. This engineering design deeply integrates biofuel processing with large-scale hydrogen production, energy storage, and carbon capture installations, transforming the Khorezm region into an international hub for green industry.

The signing of the PIA marks the project's formal transition from preliminary planning to on-site development. Both parties have agreed that the project team will visit the Khorezm region in May 2026 to coordinate and advance subsequent implementation measures. This infrastructure project is expected to create 2,000 direct and indirect jobs during the construction period. By introducing advanced green technology transfers, it will establish Uzbekistan's position in the clean energy transition.

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