The International Finance Corporation (IFC) is providing US$35 million in equity and debt financing to SAFCO Venture Holdings to establish Pakistan's first sustainable aviation fuel (SAF) facility. Located in Sheikhupura, Punjab, this greenfield project will convert waste oils, including used cooking oil, into SAF, contributing significantly to emissions reduction and the promotion of a circular economy in Pakistan.
The facility, capable of producing 200,000 tonnes of SAF annually, will collect 250,000 tonnes of feedstock oil, helping to cut over 500,000 tonnes of CO₂ emissions each year. SAF, derived from renewable biomass and waste, can reduce life-cycle greenhouse gas (GHG) emissions by up to 94% compared to conventional jet fuel. This is particularly important as aviation accounts for 13.9% of global transport sector emissions, the second-largest contributor after road transport.
The IFC's US$35 million financing package includes US$30 million in equity—US$20 million from IFC's own account and up to US$10 million from the UK-backed climate-focused CIFPAK programme—and US$5 million in debt. This investment is crucial for anchoring SAFCO Ventures' pioneering efforts and supporting the nascent SAF industry in South Asia.
Beyond its environmental benefits, the project is set to generate economic opportunities. It is expected to create 300 direct jobs, providing technical training and technology transfer and approximately 20,000 indirect jobs in the waste-to-fuel supply chain. Additionally, it will bolster Pakistan's foreign exchange earnings through SAF exports while producing Bionaphtha, a feedstock for sustainable plastics.
Managed by Safco OPCO, a subsidiary of SAFCO Ventures, the facility marks a significant step forward in South Asia's renewable energy landscape. SAFCO's other subsidiary, Biotech Energy (BTE), operates Pakistan's largest biodiesel refinery and oil feedstock collection network, further positioning the group as a leader in sustainable energy solutions.
