Kazakhstan Signs Agreement to Develop Feasibility Study for Sustainable Aviation Fuel Production

An agreement has been signed for the development of a feasibility study (FS) for the construction of a Sustainable Aviation Fuel (SAF) production plant in the Republic of Kazakhstan. The document was signed by representatives of KazMunayGas-Aero LLP (a subsidiary of JSC NC KazMunayGas – KMG), the American company LanzaJet, Inc., and the leading Kazakh agro-industrial holding KazFoodProducts LLP (KFP).

The pre-feasibility study phase was successfully completed last year. The main feasibility study is expected to be completed by the end of 2025.

This project is of particular importance in the context of President Kassym-Jomart Tokayev’s directive to transform Kazakhstan into an international aviation hub with advanced transit potential. The signing of the agreement followed a meeting held in the United States in March 2025 between KMG’s Chairman Askhat Khassenov and LanzaJet’s CEO Jimmy Samartzis, during which they discussed cooperation prospects in SAF production.

During the feasibility study phase, the parties will conduct a comprehensive analysis of the project, including identifying the optimal location, determining production volumes, and evaluating other key factors for a final investment decision.

SAF is used globally to reduce carbon dioxide emissions as an additive to Jet A-1 aviation fuel. Since 2018, three of KMG’s refineries have been equipped to produce Jet A-1. Additionally, Kazakhstan’s airport fueling infrastructure is being modernized to support the gradual transition from the current TS-1 aviation fuel standard to Jet A-1.

This ambitious project brings Kazakhstan closer to its carbon neutrality goals under the Paris Agreement and opens new opportunities to attract leading international airlines and cargo operators.

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SAF (Sustainable Aviation Fuel) is an environmentally friendly fuel produced from renewable resources in accordance with ASTM International standards. Global aviation leaders are actively transitioning to SAF: the U.S. aims for 50% SAF usage by 2050, the EU targets 2% by 2025 with an increase to 63% by 2050, and the UK plans for 10% usage by 2030.

LanzaJet is a global leader in SAF production technologies using ethanol (alcohol-to-jet). The company has signed long-term offtake agreements with major airlines such as All Nippon Airways, British Airways, and Virgin Atlantic. LanzaJet’s unique technology can utilize ethanol from various sources—both biological and non-biological—resulting in up to a 95% reduction in greenhouse gas emissions and significantly increased energy efficiency.

KazFoodProducts LLP (KFP) is a major Kazakh agro-industrial holding, which includes BioOperations LLP—specialized in producing bioethanol from wheat. KFP is also developing the Qostanay Grain Industry plant, with a processing capacity of 430,000 tons of wheat per year. This plant is expected to become an additional source of bioethanol suitable for SAF production.