Islamabad, Dec 5: The Asian Development Bank (ADB) and SAFCO Venture Holdings Limited (SAFCO) have signed an $86.2 million financing package to establish a sustainable aviation fuel (SAF) facility in Sheikhupura. This marks Asia and the Pacific’s first private sector-led SAF initiative.
The project financing includes $41.2 million from ADB’s ordinary capital resources and $45 million in syndicated loans from partners, including the Emerging Africa & Asia Infrastructure Fund and ILX. Additionally, the International Finance Corporation is supporting with a parallel loan.
The 200-kilotons-per-annum facility will use waste-based feedstock like used cooking oil. Shell Eastern Trading (Pte) Ltd has committed to a long-term off-take agreement for up to 145,000 tons of SAF annually. Once operational, the plant will reduce carbon dioxide emissions by up to 500,000 tons per year.
This first-of-its-kind SAF project in Pakistan supports job creation, cutting-edge technology, and a significant reduction in aviation-related emissions.
