ADB provides assistance to Pakistan to develop Sustainable Aviation Fuel (SAF) facility
The Asian Development Bank (ADB) has
approved an $86.2 million technical assistance project to develop a Sustainable
Aviation Fuel (SAF) facility in Pakistan. This initiative aims to convert local
waste resources into high-value sustainable fuel for export, providing
substantial economic and environmental benefits for the country.
According to the ADB report, this
new facility will produce SAF from waste materials, supporting climate goals by
significantly reducing greenhouse gas emissions. The project will also boost
skilled employment in Pakistan through technology transfer and training,
transforming the informal oil market into a formal economic sector and
positioning Pakistan as a key player in the global SAF industry.
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As per the International Air
Transport Association, SAF is expected to contribute over 65% to the aviation
industry’s emission reduction targets. The SAF market is projected to expand to
407 million tonnes by 2050.
The project will be led by Bio Tech
Energy (BTE), which currently operates a biodiesel refinery in Sheikhupura.
This refinery, operational since 2016, produces 45 kilotons per annum (KTPA) of
biodiesel from waste-based feedstocks, including used cooking oil and poultry
by-products, for export to EU markets. The new SAF facility, a brownfield
expansion next to the existing refinery, will have a capacity of 200 KTPA,
producing 85% SAF and 15% bio-naphtha using similar feedstock.
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To support the increased feedstock
demand, the project plans to enhance collection networks in major cities such
as Karachi, Peshawar, and Islamabad, ultimately sourcing up to 260,000 tonnes
of feedstock—about 20% of Pakistan’s total collectible waste resources.
Source: Dawn