Companies from the United Arab Emirates (UAE), specifically Allied Biofuels and Deem Engineering, have signed an agreement to implement a biofuel production project using hydrogen technologies in the Khorezm region. The volume of foreign direct investment in this project is estimated at 6.1 billion US dollars.
The construction of the plant is scheduled from 2026 to 2030, with full production capacity expected in the third quarter of 2030. After reaching design capacity, the plant will be able to produce 110,000 tons of aviation biofuel, 300,000 tons of power-to-liquid aviation fuel, and 5,000 tons of green diesel fuel annually.
Approximately 70% of the total product volume is intended for supply to Uzbekistan's airports, while the remainder will be exported by Emirates National Oil Company. Furthermore, Allied Biofuels plans to attract financing for part of the project from BlackRock/Global Infrastructure Partners. The company also intends to build the five-star Alight Hilton Urgench hotel in Urgench and a multi-purpose clinic with 300 beds. The medical center will be implemented under a Build-Operate-Transfer model and will cater to patients from Central Asian countries.
Alfred Benedict, Chairman of Allied Biofuels, announced plans to attract financing. Muhammad Alfalasie, CEO of Deem Engineering, noted that the partnership between Uzbekistan and the UAE has reached a new level and emphasized that the project will contribute to regional development.
Allied Biofuels FE LLC has signed a logistics cooperation agreement with the European multimodal transport operator Pro Logistic Services SIA. The goal of this partnership is to create an international export infrastructure for supplying Sustainable Aviation Fuel (SAF) and synthetic aviation fuel (e-SAF) from the production facility in Uzbekistan to key markets in Europe, the United Arab Emirates, and other countries.
The signed document marks an important milestone in the commercial preparation of the project, as it confirms the formation of an international logistics system for future export operations. According to the terms of the agreement, Pro Logistic Services will be responsible for developing and implementing a comprehensive multimodal transport system. This system will include specialized railway tank cars, port cargo handling, forwarding, and sea transport.
Pro Logistic Services possesses an extensive international logistics network and is among the largest operators in Eurasia. The company manages a fleet of over 4,000 railway wagons and has direct agreements with national railway authorities in Uzbekistan, Kazakhstan, Latvia, Turkmenistan, and Lithuania. The company's operational units are located in Latvia, Uzbekistan, Kazakhstan, Turkmenistan, Lithuania, Poland, Estonia, Ukraine, Cyprus, and the United Arab Emirates, enabling complete international logistics from the point of production to the end consumer.
For supplies to the Persian Gulf countries, specialized railway tank cars will be used, departing from the Miskin railway station. The route follows the Trans-Caspian International Transport Route, also known as the Middle Corridor. It crosses Kazakhstan, the Caspian Sea, and passes through the ports of Poti and Batumi in Georgia, where the cargo is transferred to sea tankers for delivery via the Black Sea, Mediterranean Sea, and the Suez Canal to the port of Fujairah in the United Arab Emirates and other ports.
Exports to Europe will be carried out by rail from Miskin station to the port of Riga, which is one of Pro Logistic Services' key logistics hubs. From there, the fuel will be transported by sea to European ports, including Hamburg and other terminals.
The company noted that the location of the Allied Biofuels production complex and the existing transport network of its logistics partner provide additional advantages for the project's export strategy. The development of the logistics infrastructure will proceed parallel to engineering works, production planning, and the conclusion of long-term fuel supply contracts. This approach ensures that future production volumes will be supported by a scalable international distribution network.
Alfred Benedict, Managing Director of Allied Biofuels, stated that this partnership with Pro Logistic Services reflects the high level of preparedness of the project and its international aspirations. He emphasized that the partner's direct agreements with railway authorities, the availability of specialized rolling stock, and years of experience on major transport corridors ensure a reliable logistical base for future supplies of SAF and e-SAF to global markets.
Natalya Tsoy, a member of the Board of Directors of Pro Logistic Services, reported that the company has been involved in implementing complex international logistics projects across Eurasia for over two decades. She added that the company's transport infrastructure, specialized rolling stock, and presence along the entire export route will allow for the creation of effective links between Allied Biofuels' future production and the aviation markets in Europe, the United Arab Emirates, and other countries.
The Allied Biofuels project is valued at 6.08 billion US dollars and is being implemented with state support according to a separate decree of the President of Uzbekistan. Previously, the company signed a memorandum of long-term fuel supply with Uzbekistan Airports. The agreement with Pro Logistic Services is another step in building the project's commercial platform, covering the entire value chain—from the production of sustainable aviation fuel in Uzbekistan to the supply to airlines and strategic clients in international markets.
