The Asian Development Bank (ADB) has approved an $86.2 million technical assistance project to establish a Sustainable Aviation Fuel (SAF) production facility in Pakistan. This initiative will convert local waste materials into a high-value export product, bringing both significant economic benefits and contributing to global climate objectives, reported Pakistani media.
According to an ADB report, the SAF facility will produce an environmentally friendly alternative to traditional aviation fuel, helping reduce greenhouse gas emissions in the aviation sector. In addition to supporting Pakistan’s climate goals, the project will create skilled jobs for Pakistani engineers through technology transfer and training, while formalizing and strengthening the country’s informal gutter oil market. This positions Pakistan as a potential leader in the rapidly expanding global SAF industry.
The International Air Transport Association (IATA) estimates that SAF will make up over 65% of the aviation sector’s efforts to meet emission reduction targets, with the global SAF market projected to reach 407 million tonnes by 2050.
The project will be led by Bio Tech Energy (BTE), a pioneer in biodiesel production in Pakistan. BTE operates a biodiesel refinery in Sheikhupura, which has been commercially operational since 2016. The new SAF plant will be developed on a brownfield site next to BTE’s existing biodiesel facility. The plant is expected to have an annual capacity of 200,000 tonnes, with 85% of the output dedicated to SAF and the remaining 15% to bio-naphtha.
The feedstock for SAF production will come from the same waste-based sources used in BTE’s biodiesel operations, including used cooking oil, poultry feather acid oil, and soap stock acid oil. The project aims to scale up feedstock collection to 260,000 tonnes per year, accounting for around 20% of Pakistan’s total collectable feedstock. This will be achieved by expanding collection points in major cities like Karachi, Peshawar, and Islamabad.
Once operational, the facility is expected to boost Pakistan’s participation in the global SAF market, fostering economic growth and creating new job opportunities in the renewable energy sector.
To read more about Sustainable Aviation Fuel  Industry News    continue reading Bioenergytimes.com
