In the heart of Punjab, Pakistan, a revolutionary initiative is taking flight, quite literally. The nation is transforming its agricultural waste into sustainable aviation fuel (SAF), positioning itself as a potential dark horse in Asia’s race towards aviation decarbonisation. This isn’t just about reducing emissions; it’s about turning an environmental problem into an economic opportunity.
Every harvest season, the burning of agricultural residue blankets major Pakistani and neighbouring Indian cities in smog, a crisis that releases particulate matter and compromises air quality. But this challenge is now being seen as a technological opportunity. Pakistan’s emerging SAF sector is capitalising on this underutilised resource, with crop residues burned during both winter and summer representing immense potential for SAF production.
The technology behind this green revolution is twofold. Hydroprocessing Esters and Fatty Acids (HEFA) is used for lipid-based feedstocks like used cooking oil and non-edible oils. Alcohol-to-Jet (ATJ) is optimised for converting sugar-based inputs such as wheat straw and rice husks. Both methods produce aviation fuels chemically identical to conventional jet fuel, requiring no aircraft modifications, and deliver substantially improved carbon profiles. A third technology, using carbon dioxide capture, is still in development but holds promise for further emissions reductions.
The Sheikhupura facility, a $121 million project, is a testament to Pakistan’s commitment. Announced in December 2024, it’s Asia-Pacific’s first private-sector SAF project, excluding China. The Asian Development Bank (ADB) has committed $86.2 million, with the International Finance Corporation (IFC) providing $35 million. This facility, operated by SAFCO Venture Holdings Limited and owned by Taimur Shaikh and Ali Shaikh, promises to produce 200,000 tonnes of SAF annually, reducing 500,000 tonnes of carbon dioxide yearly. It’s also set to create 300 direct jobs and facilitate approximately 20,000 indirect employment opportunities.
But Pakistan’s ambitions don’t stop at Sheikhupura. The nation is eyeing a four-dimensional solution: enhancing energy security, fostering economic development, attracting foreign direct investment, and mitigating environmental impacts. For Asian nations with similar agricultural profiles, Pakistan’s SAF initiative offers a potential template for converting agricultural waste into aviation biofuels and addressing seasonal air pollution events.
However, the road ahead is not without challenges. The price difference between SAF and conventional jet fuel is substantial, and Asian carriers navigating post-pandemic recovery may find the cost gap challenging. Moreover, maintaining technological competitiveness and improving agricultural waste collection and transportation efficiency will be crucial.
Yet, Pakistan is undeterred. With continued investment, sustained R&D, and a comprehensive policy roadmap, the nation aims to propel itself to the forefront of the global SAF revolution. The Sheikhupura facility alone is projected to produce 18,000 tonnes of bionaphtha annually for sustainable plastics production, enhancing the business case further.
As Asian airlines face mounting pressure to reduce emissions, Pakistan’s unique approach offers a regional model worth examining. It’s not just about flying greener; it’s about turning agricultural waste into economic gold, one flight at a time.
