ENOC signs deal with Allied Biofuels to explore sustainable aviation fuel supply

Dubai-based ENOC Group has signed an agreement with Abu Dhabi company Allied Biofuels Holding to explore the supply and distribution of sustainable aviation fuel, or SAF, from a new production facility being developed in Uzbekistan.

The agreement focuses on both Sustainable Aviation Fuel and electro-synthetic sustainable aviation fuel, known as e-SAF, which are seen as key alternatives to conventional jet fuel as the aviation industry works to reduce carbon emissions.

Under the memorandum of understanding, the two companies will establish a joint working group to assess the commercial feasibility of a long-term fuel supply and distribution network serving local, regional and international markets.

The fuels would be sourced from Allied Biofuels’ planned integrated production facility in Uzbekistan, which is expected to manufacture both SAF and e-SAF.

Demand for sustainable aviation fuel has risen sharply in recent years as airlines and governments seek ways to decarbonise aviation, although global production capacity remains limited.

ENOC, one of the region’s largest aviation fuel suppliers, said the agreement supports the UAE’s Sustainable Aviation Fuel Roadmap 2030 and wider Net Zero 2050 strategy.

Group Chief Executive Hussain Sultan Lootah said developing a national SAF ecosystem required coordination across the full supply chain, including production, certification, distribution and long-term purchasing agreements.

Allied Biofuels said the partnership with ENOC would help establish a commercially viable route to market for sustainable fuels produced at the Uzbekistan facility.

The agreement reflects growing investment by Gulf energy companies in lower-carbon aviation fuel technologies as pressure increases on the global aviation sector to cut emissions.