Allied Biofuels Uzbekistan Secures Presidential Decree for Sustainable Aviation Fuels Project

Allied Biofuels FE LLC has formalized a binding Project Implementation Agreement with the Khorezm Region Government of the Republic of Uzbekistan. This agreement, executed on April 9, 2026, marks a significant step for the company's planned Sustainable Aviation Fuels (SAF) production facility in Uzbekistan. The project has received substantial support from the Uzbek government, highlighted by a Presidential Decree issued on March 18, 2026, which outlines a comprehensive framework of incentives and support mechanisms for the initiative.

The Presidential Decree provides a robust package of benefits designed to facilitate the project's development and operation. Key incentives include exemptions from customs duties and VAT on imported equipment, raw materials, and components not produced in Uzbekistan, as well as exemptions from land tax, property tax, and water use tax for a period of ten years from the project's commissioning. Furthermore, the decree grants the right to directly negotiate long-term contracts for the purchase of raw materials, such as cotton stalks, with state-owned enterprises and local farmers, ensuring a stable supply chain for the SAF production. The government has also committed to providing necessary infrastructure, including power, gas, and water supply, to the project site.

The agreement stipulates that Allied Biofuels will establish a modern, environmentally friendly production facility capable of converting agricultural waste, specifically cotton stalks, into SAF. This initiative aligns with Uzbekistan's broader strategy to diversify its energy sector and promote sustainable development. The project is expected to create numerous jobs, stimulate local agricultural economies by providing a new revenue stream for farmers, and position Uzbekistan as a key player in the global sustainable aviation fuel market. The facility aims to produce SAF that meets international standards, contributing to the reduction of carbon emissions in the aviation industry.

The collaboration between Allied Biofuels FE LLC and the Uzbek government underscores a shared commitment to renewable energy and climate action. The legal and financial framework established by the Presidential Decree and the Project Implementation Agreement provides a stable and attractive environment for foreign direct investment in Uzbekistan's green economy. This development is anticipated to have a positive impact on the region's economic growth and environmental sustainability, setting a precedent for future green energy projects in the country and the wider Central Asian region.