IFC invests $35m in Pakistan’s first greenfield sustainable aviation fuel facility
Posted: 19 December 2024 | | No comments yet
The IFC provides $35m in equity and debt to support Pakistan’s first SAF facility, reducing emissions and creating jobs through sustainable aviation fuel production.
The International Finance Corporation (IFC) is offering up to $35m in equity and debt financing to SAFCO Venture Holdings Limited (SAFCO Ventures) to support the development of Pakistan’s first greenfield sustainable aviation fuel (SAF) facility. This facility will convert thousands of tonnes of used cooking oil and other waste oils into aviation fuel, contributing to the reduction of global emissions.
“We are pleased to collaborate with IFC in setting up this important facility in Pakistan,” said Ali Shaikh, Founder and CEO of SAFCO Ventures. “We believe we are strategically positioned to scale up SAF production, while fostering a more efficient and sustainable feedstock oil value chain in the country.”
How will this investment help with SAF
IFC’s investment, mostly in the form of long-term patient equity capital, has been instrumental in anchoring this project and financing a nascent sector. The project is expected to help promote a circular economy in Pakistan, create jobs, and support export-led growth.
Join us live: Shaping the Next Generation of Hold Baggage and Air Cargo Screening
Join us live for an insightful webinar on 11th December at 14:00 GMT, in collaboration with Smiths Detection, as we explore the strategic balance of operational efficiency, regulatory compliance, and sustainability in high-volume security environments.
This session offers a focused look into future-proofing your security strategy.
Key learning points
- Cost Reduction: Strategies to minimize bag travel time while simultaneously reducing operational costs.
- Regulatory Roadmap: Insights into the next wave of regulatory changes and their impact on future investment decisions.
- Sustainable Systems: Practical approaches to building sustainability into security systems and lowering the total cost of ownership (TCO).
- Scalable Solutions: Real-world examples of scalable systems supporting current airport growth and preparing for tomorrow.
Register now for expert insights, case studies, and actionable strategies on operational efficiency!
SAF, a biofuel made from renewable biomass and waste resources, can reduce life cycle greenhouse gas (GHG) emissions by up to 94 percent compared to conventional jet fuel. The transport sector accounts for about a quarter of global greenhouse gas (GHG) emissions, with aviation contributing 13.9 percent of these emissions, making it the second-largest source of emissions in the sector after road transport. Producing SAF is therefore expected to help reduce global emissions.
The new 200,000 tons-per-annum (TPA) facility in Sheikhupura, Punjab will collect 250,000 tons of feedstock oil annually and convert it into SAF, helping to reduce more than 500,000 tons of CO2 annually. It is also expected to create 300 direct jobs through the transfer of technology and technical training and lead to an estimated 20,000 indirect jobs in the waste-to-fuel value chain, while generating foreign exchange revenue for Pakistan through SAF exports.
IFC’s $35m financing package comprises $30m equity and $5m debt. Of the total equity contribution, $20m is from its own account and an additional investment of up to $10m is from a climate-related blended finance program (CIFPAK) that was recently launched in partnership with the UK Foreign Commonwealth & Development Office.
The International Airport Summit is open for registration!
Date: 19 – 20 November 2025
Location: JW Marriott Hotel Berlin
At our flagship event of the year, we will dive into the future of airport operations, with expert-led sessions on passenger experience, innovative smart technologies, baggage handling, airside operations, data, security, and sustainability.
This is where global airport leaders come together to share insights, challenges, and real-world solutions.
Limited complimentary passes are available for eligible professionals – first come, first served!
Related topics
Cargo, Emissions, Ground handling, Innovation, Sustainability, Sustainable Aviation Fuel (SAF)
Related organisations
International Finance Corporation (IFC), SAFCO Venture Holdings Limited (SAFCO Ventures), UK Foreign Commonwealth & Development Office (FCDO)
Chief Executive Officer
CEO
Chief Operating Officer
Head of Operations, Safety and Emergency
Chief Strategy Development Officer
Head of Operations
Airport General Manager
CEO
Chief Executive Officer