The International Finance Corporation (IFC) has committed up to $35 million in equity and debt financing to SAFCO Venture Holdings Limited (SAFCO Ventures) to establish Pakistan’s first greenfield sustainable aviation fuel (SAF) facility. This groundbreaking project aims to convert thousands of tons of used cooking oil and other waste oils into aviation fuel, significantly reducing greenhouse gas emissions.
The new 200,000 tons-per-annum facility, located in Sheikhupura, Punjab, will utilize 250,000 tons of feedstock oil annually to produce SAF and Bionaphtha. This innovative approach will not only reduce carbon emissions but also create jobs and contribute to Pakistan’s economic growth.
By investing in this project, IFC is supporting a circular economy in Pakistan, where waste materials are transformed into valuable products. The facility is expected to create 300 direct jobs and 20,000 indirect jobs, while also generating foreign exchange through SAF exports.
Ali Shaikh, Founder and CEO of SAFCO Ventures, expressed his enthusiasm for the partnership with IFC. He emphasized the strategic positioning of SAFCO Ventures to scale up SAF production and develop a more efficient and sustainable feedstock oil value chain.
Ashruf Megahed, Regional Industry Head for Manufacturing, Agribusiness and Services at IFC, highlighted the significance of this project in promoting sustainable fuel production and reducing carbon emissions. He noted that the facility will set a precedent for future investments in the SAF sector.
IFC’s investment in this project aligns with its commitment to supporting sustainable development and climate action. By promoting the adoption of clean technologies and innovative business models, IFC is helping to create a more sustainable future for Pakistan.
