Allied Biofuels and Praj Industries Sign Memorandum of Understanding to Establish Central Asia’s Largest Ethanol Refinery in Uzbekistan

Allied Biofuels and Praj Industries Sign Memorandum of Understanding to Establish Central Asia’s Largest Ethanol Refinery in Uzbekistan

November 17, 2025

A strategic milestone advancing Allied Biofuels’ Sustainable Aviation Fuel and electro-synthetic Sustainable Aviation Fuel platform in Uzbekistan

Allied Biofuels FE LLC and Praj Industries Ltd have signed a Memorandum of Understanding to develop what is set to become Central Asia’s largest ethanol production facility in the Khorezm region of Uzbekistan. The agreement marks a major step forward in Allied Biofuels’ broader strategy to establish the region’s first integrated refinery producing Sustainable Aviation Fuel, electro-synthetic Sustainable Aviation Fuel, and Green Diesel at an industrial scale.

At the center of the development is Praj’s ethanol refinery technology, which is expected to produce 890 tonnes per day, equivalent to approximately 293,700 tonnes per annum, of 95 percent ethanol, while also enabling the capture of biogenic carbon dioxide from the first-generation ethanol process. This ethanol platform will form a critical upstream foundation for Allied Biofuels’ downstream sustainable fuels strategy in Uzbekistan.

Under the planned integrated configuration, ethanol produced through the first-generation process will be used as a core feedstock to support the annual production of approximately 160,400 tonnes of Sustainable Aviation Fuel and 5,040 tonnes of Green Diesel. At the same time, biogenic carbon dioxide captured from the ethanol process will be combined with synthesis gas derived from gasification and green hydrogen produced from 2,000 megawatts of Proton Exchange Membrane electrolyzers to enable annual production of approximately 257,000 tonnes of electro-synthetic Sustainable Aviation Fuel.

This structure makes the project far more than a conventional ethanol plant. It’s a critical first step in Allied Biofuels’ clean fuels platform, connecting feedstock processing, carbon capture, hydrogen integration, and advanced fuel conversion into a single industrial ecosystem focused on long-term scale, decarbonization, and regional relevance.

Under the Memorandum of Understanding, Praj will deploy its proven first-generation ethanol technology, supply proprietary equipment, and provide support across design, engineering, procurement, and commissioning. Sorghum is expected to serve as the primary feedstock for ethanol production, creating a locally anchored supply chain that supports both agricultural value creation and industrial fuel production.

The project is also designed to closely align with Uzbekistan’s climate strategy and support the objectives of the country’s Net Zero Emissions Office, which is helping drive national policy toward carbon neutrality. By enabling large-scale conversion of ethanol to Sustainable Aviation Fuel, the refinery is expected to contribute meaningfully to displacing fossil-based aviation fuels, reduce greenhouse gas emissions, and strengthen Uzbekistan’s role as an emerging regional leader in renewable energy and low-carbon industrial development.

For Allied Biofuels, this Memorandum of Understanding is not only a technology partnership milestone but also a significant milestone for the company. It also reinforces the broader commercial and strategic logic of the Uzbekistan project. Building a dedicated ethanol platform at scale strengthens the upstream supply chain for sustainable fuel production. It supports the technical integration needed for a world-scale multi-product clean fuels refinery. In that sense, the agreement materially advances both the development pathway and the long-term bankability of the broader project.

Commenting on the agreement, Alfred Benedict, Chairman and Managing Director of Allied Biofuels, said:

“Signing this MoU is a landmark moment for Uzbekistan and for Central Asia’s clean-energy future. With ethanol as the first step in our value chain, Allied Biofuels is committed to delivering an integrated refinery that will produce SAF, e-SAF, and Green Diesel at world scale. This project will strengthen energy security, reduce emissions, and create long-term economic opportunities for the region. Praj’s technology and expertise provide the right foundation to realize this vision in Khorezm.”

Dr. Pramod Chaudhari, Chairman of Praj Industries, added:

“We are delighted to partner with Allied Biofuels on this pioneering initiative in Uzbekistan. With our proven expertise and advanced technologies, Praj will help develop the ethanol facility. This development will support Uzbekistan’s sustainability goals while positioning Central Asia as an emerging hub in the global energy transition.”

Beyond its technical and environmental significance, the investment is also expected to create hundreds of skilled jobs, stimulate local industry, and strengthen Uzbekistan’s position as a growing hub for advanced biofuels serving both domestic and international markets. The development, therefore, carries not only energy transition value but also broader industrial, economic, and regional development significance.

With this agreement, Allied Biofuels and Praj Industries are laying an important foundation for a new phase of sustainable industrial growth in Central Asia. The project brings together technology, feedstock, hydrogen, and clean fuel production, positioning the Khorezm region at the forefront of the emerging sustainable aviation fuel value chain.

About Allied Biofuels

Allied Biofuels FE LLC is a Uzbekistan-registered company developing Central Asia’s first integrated biorefinery for the industrial-scale production of Sustainable Aviation Fuel, electro-synthetic Sustainable Aviation Fuel, and Renewable Diesel. With leading global technology partners, Allied Biofuels is building a clean energy platform that delivers environmental impact, industrial progress, and long-term economic value across the region.

About Praj Industries

Praj Industries is a globally recognized process technology and engineering company headquartered in Pune, India, with deep expertise in ethanol, bioenergy, and sustainable industrial solutions. Praj has more than 1,000 references across 100+ countries and extensive experience in process design, proprietary technology, engineering, and equipment support for large-scale biofuel and biorefinery projects. Its capabilities make it a strong strategic partner for developments that require reliable ethanol infrastructure as part of a broader Sustainable Aviation Fuel and low-carbon fuels platform.