ALMATY – Kazakhstan took a step toward entering the emerging market for sustainable aviation fuel (SAF) after signing a memorandum with Hong Kong-based Full Vision Capital to explore building an integrated production ecosystem in Alatau, a project that could position the country within the global aviation industry’s decarbonization efforts.
Photo credit: Atameken Business. Click to see the map in full size. The map is designed by The Astana Times. The memorandum, signed on Aug.4 following a meeting between Prime Minister Olzhas Bektenov and Full Vision Capital founder Dr. Peter Lee, outlines plans to study the creation of a complete SAF value chain from cultivating agricultural feedstock to processing and producing aviation fuel.
The partners will also assess opportunities to deploy smart energy technologies and nickel-hydrogen energy storage systems to support renewable energy integration. From L to R: Full Vision Capital founder Dr. Peter Lee and Prime Minister Olzhas Bektenov. Photo credit: PM’s press service.
The agreement brings together the Alatau City Authority, Kazakhstan’s Ministries of Energy, Agriculture and Transport, and Full Vision Capital under the Green Kazakhstan initiative. Speaking during the meeting, Bektenov said Alatau’s special legal regime creates favorable conditions for international investors.
“The Constitutional Law on the Special Legal Regime of Alatau City provides legal certainty, stable tax conditions and a one-stop-shop mechanism for investors. Alatau can become a pilot platform for localizing technologies and your development expertise,” he said.
Lee described the initiative as the beginning of a long-term partnership focused on sustainable urban development. “We hope to introduce innovative technologies that will help Alatau and Kazakhstan more broadly establish a new international benchmark for sustainable urban development,” he said.
The project reflects a broader global shift as aviation seeks to reduce carbon emissions. Unlike electric aircraft, which remain impractical for most commercial flights, sustainable aviation fuel is widely viewed as one of the few near-term solutions capable of significantly lowering emissions from existing aircraft without requiring major changes to airport infrastructure or airline fleets.
International airlines are also facing growing regulatory pressure to increase SAF use, particularly in Europe, where blending mandates are gradually taking effect. Those requirements are expected to drive long-term demand for new fuel suppliers outside traditional markets.
For Kazakhstan, which possesses extensive agricultural resources and is seeking to diversify its economy beyond conventional energy exports, SAF represents an opportunity to move further up the value chain by producing higher-value, low-carbon fuels rather than exporting raw materials alone.