TASHKENT / PERTH — Uzbekistan has taken a decisive step toward positioning itself within the global clean energy economy following the signing of a binding Project Implementation Agreement (PIA) with Allied Biofuels FE LLC for a $6.08 billion integrated biofuels refinery project.
According to an official statement reviewed by The Middle East Observer, the agreement—signed with the Khorezm regional government—confirms a long-term sovereign commitment to develop what is described as Central Asia’s first large-scale integrated biofuel refinery, designed to produce sustainable aviation fuel (SAF), electro-synthetic SAF (e-SAF), and green diesel at industrial scale.
The project, backed by a presidential decree granting Special Economic Zone status, will benefit from tax exemptions and customs incentives, reinforcing investor confidence and regulatory stability. Once operational, the facility is expected to produce approximately 160,400 tonnes of SAF, 257,000 tonnes of e-SAF, and 5,040 tonnes of green diesel annually, positioning it among the most advanced zero-carbon fuel production systems globally.
From a technological standpoint, the refinery will be powered by a 4.45 GW renewable energy system, incorporating large-scale battery storage and green hydrogen production infrastructure, reflecting a fully integrated low-carbon industrial model.
As The Middle East Observer notes, the agreement carries broader strategic implications beyond energy production. It signals Uzbekistan’s intent to attract transformative industrial capital and establish itself as a regional hub for sustainable manufacturing and export-oriented energy solutions. The project is also expected to generate around 2,000 jobs during construction, alongside long-term industrial and economic spillovers.
The deal further highlights a growing global shift toward sustainable aviation fuels, as governments and industry players accelerate efforts to decarbonize transport and meet climate targets. Within this context, Uzbekistan’s initiative positions the country at the forefront of emerging clean fuel supply chains.
