Asian Development Bank (ADB) and SAFCO Venture Holdings Limited (SAFCO) have signed an $86.2 million financial package to develop Pakistan’s first sustainable aviation fuel (SAF) facility in Sheikhupura.
Asian Development Bank and SAFCO Venture Holdings Limited have signed an $86.2 million financial package to develop Pakistan’s first sustainable aviation fuel facility in Sheikhupura. The initiative marks the region’s first private sector-led SAF project and a significant step towards decarbonizing the aviation sector, reported 24NewsHD TV channel on Thursday.
The financing structure includes $41.2 million from ADB’s ordinary capital resources and $45 million in syndicated loans. These loans incorporate contributions from The Emerging Africa & Asia Infrastructure Fund and ILX, an Amsterdam-based asset manager specializing in sustainable development strategies. The International Finance Corporation is also participating through a parallel loan.
Suzanne Gaboury, ADB’s Director General for Private Sector Operations, highlighted the importance of the initiative, stating, “This new facility is a significant step towards decarbonizing the hard-to-abate aviation sector. ADB’s support showcases our commitment to innovative solutions that combat climate change in Asia and the Pacific.”
The SAF facility, with a capacity of 200 kilotons per annum, will utilize waste-based feedstocks like used cooking oil. It is expected to produce 145,000 tons of SAF and 18,000 tons of bionaphtha annually, contributing to a yearly reduction of up to 500,000 tons of carbon dioxide equivalent emissions. Aviation accounts for 2.5%–3.5% of global CO₂ emissions, and SAF can reduce such emissions by up to 85%.
SAFCO has secured a long-term offtake agreement with Shell Eastern Trading Ltd for volumes of up to 145,000 tons of SAF annually. Geoffrey Mansfield, Shell’s General Manager of Low Carbon Fuels Trading, emphasized Shell’s commitment to low-carbon fuels, stating, “This agreement aligns with our strategy to create more value with fewer emissions, providing airlines with greater access to SAF.
پاکستان تازہ ترین خبریں, پاکستان عنوانات
Similar News:آپ اس سے ملتی جلتی خبریں بھی پڑھ سکتے ہیں جو ہم نے دوسرے خبروں کے ذرائع سے جمع کی ہیں۔
Pakistan receives $500 million from ADB to tackle climate changeThe State Bank of Pakistan (SBP) on Thursday received a $500 million loan from the Asian Development Bank (ADB). According to the SBP, this amount will be added to the foreign exchange reserves next week. The SBP says the ADB has given this amount to deal with the impact of climate change in Pakistan.
مزید پڑھ »
Ahsan urges ADB to establish database systems for Courts, PoliceThe ADB delegation expressed willingness to enhance Pakistan’s export capacity
مزید پڑھ »
EASA Lifts Suspension on Pakistan International AirlinesEuropean Aviation Safety Agency (EASA) has lifted the suspension on Pakistan International Airlines (PIA) and issued Third Country Operator (TCO) authorization to Airblue, marking a significant achievement for Pakistan’s aviation sector.
مزید پڑھ »
Super Micro slumps as weak forecast, annual report uncertainty fuel investor worriesSuper Micro slumps as weak forecast, annual report uncertainty fuel investor worries
مزید پڑھ »
ADB launches major initiative to build resilience to melting glaciersboth upstream and downstream communities face greater water and food insecurity
مزید پڑھ »
Apple makes $100 mln investment proposal for new plant in IndonesiaApple makes $100 mln investment proposal for new plant in Indonesia
مزید پڑھ »