KBR Lands SAF Technology Deal for Kazakhstan's First SAF Facility

KBR, Inc. KBR has been awarded a contract by KazMunayGas-Aero (KMG-Aero), a subsidiary of Kazakhstan’s national oil and gas company NC KazMunayGas, and KazFoodProducts (KFP) to support the development of Kazakhstan’s first Sustainable Aviation Fuel (SAF) production plant. The project marks another step in the country’s efforts to expand lower-carbon aviation infrastructure and strengthen its position as an international aviation and transit hub.

For KBR, the award expands the commercial footprint of its PureSAF technology and reinforces its position in aviation decarbonization. The contract also adds to the company’s growing portfolio of sustainable-fuel projects as global demand for lower-carbon aviation solutions continues to develop.

PureSAF Expands KBR’s Aviation Decarbonization Footprint

Under the contract, KBR will license its proprietary PureSAF technology, invented and developed by Swedish Biofuels AB, and provide the proprietary engineering design for the facility. The plant will use an alcohol-to-jet (AtJ) process to convert alcohol-based feedstocks into SAF. The project is also expected to support the integration of domestically produced agricultural feedstocks into higher-value, low-carbon fuel production value chains.

The project is strategically important for Kazakhstan because it supports the government’s goal of developing the country into an international aviation and transit hub, while also creating a higher-value use for its agricultural resources. From KBR’s perspective, the contract expands its role in aviation decarbonization and low-carbon technologies. PureSAF is designed to work with different types of feedstocks and generate high SAF yields, giving KBR an opportunity to support the project from technology licensing and engineering through its broader lifecycle.

The latest contract builds on KBR’s expanding PureSAF portfolio. During the second quarter of fiscal 2026, PureSAF was selected for NorSAF’s planned 100,000-ton-per-year SAF and e-SAF facility in Latvia and for Keppel and Aster’s proposed SAF project in Singapore. KBR was also selected to provide project management consultancy services for Power2X’s Rotterdam eFuels project, which is expected to produce more than 250,000 tons of e-SAF annually.

KBR’s Stock Price Performance

KBR stock has gained 12.4% in the past three months, outperforming the Zacks Engineering - R and D Services industry’s 1% rise. The company’s solid operating execution, sizeable backlog and broad-based demand across its end markets support its growth prospects. KBR also continues to benefit from a healthy pipeline of new business opportunities, disciplined cost management and progress on its planned separation. Management reaffirmed its fiscal 2026 guidance following the second-quarter results, while noting strong visibility across the business and continued momentum in customer demand.

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Nonetheless, risks remain. The timing of government contract awards and protest resolutions could affect backlog conversion, while international collection timing, project mix and execution can create variability in results. The planned separation also involves additional costs and operational complexity as KBR works to establish two independent businesses.

KBR’s Zacks Rank & Key Picks

KBR currently carries a Zacks Rank #3 (Hold).

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