- IFC commits up to $35 million to build Pakistan’s first sustainable aviation fuel (SAF) plant in Sheikhupura, Punjab.
- The plant will convert 250,000 tons of waste oils and fats into 200,000 tons of SAF annually, creating 300 direct and 20,000 indirect jobs.
- SAF production will begin by September 2026, supporting Pakistan’s clean energy transition and waste reduction efforts.
Pakistan’s first sustainable aviation fuel (SAF) plant gained momentum, with the International Finance Corporation (IFC) committing up to $35 million in financing. SAFCO Venture Holdings will build the facility in Sheikhupura, Punjab, making it the first in South Asia.
Construction begins in January, and SAF production will start by September 2026. The plant will use 250,000 tons of waste oils, fats, and greases as feedstock, converting them into 200,000 tons of SAF annually. Pakistan generates over a million tons of these materials annually, providing a substantial supply for the facility. The plant will use the Hydroprocessed Esters and Fatty Acids (HEFA) production pathway.
Pakistan’s waste oils and fats will fuel the plant, reducing environmental waste and contributing to cleaner aviation. The project will directly create over 300 jobs and support around 20,000 indirect jobs throughout the waste-to-fuel value chain.
Ashruf Megahed, IFC’s regional head for manufacturing, agribusiness, and services, emphasised the project’s importance: “This initiative shows how fuel production can integrate into a circular economy. It uses waste without harming food production or water supplies.”
The SAF plant represents IFC’s first investment in sustainable aviation fuel production, positioning it at the forefront of this growing industry. Megahed noted that this investment will set the pace for future funding from IFC and other financiers, boosting sustainable fuel projects globally.
Sustainable aviation fuel presents a solution to reducing carbon emissions in the aviation sector. Unlike traditional jet fuels, SAF uses renewable resources, significantly lowering its carbon footprint. The aviation industry faces rising pressure to cut emissions, and SAF provides a key tool in meeting those targets.
The SAFCO plant will benefit the aviation sector and Pakistan’s environmental initiatives. By turning waste oils and fats into fuel, the project aligns with efforts to reduce waste and cut greenhouse gas emissions. It will also stimulate economic growth by creating fuel production and waste management jobs.
Pakistan’s role in renewable energy continues to grow, with the SAF plant serving as a significant step in the country’s clean energy transition. The project contributes to global efforts to decrease dependence on fossil fuels and shift towards sustainable energy sources.
The success of the SAFCO plant could pave the way for future waste-to-fuel projects across Pakistan and South Asia. With more countries seeking solutions to climate change and energy security, SAF will play a critical role in achieving environmental and economic goals.