Essar Future Energy plans to build a large hydrotreated biofuels plant in India. The plant will produce sustainable aviation fuel (SAF) and hydrotreated vegetable oil (HVO). It will be one of the country’s key steps toward advanced low-carbon fuels.
The facility will be located in the Devbhumi Dwarka district of Gujarat. Essar aims to make a final investment decision soon. The plant is expected to start operations between the second half of 2028 and early 2029.
Once operational, the complex will process about 1 million tonnes of feedstock a year. It will use raw materials such as used cooking oil (UCO), fats, oils and greases. In addition, the company is exploring other waste-derived inputs such as animal fats and palm oil mill effluent.
In line with global norms, the fuel products will meet international sustainability standards. Initially, Essar plans to send a substantial share of the output to the United Kingdom. There, the company will blend SAF with fossil fuel at the Stanlow refinery to meet renewable fuel targets. Meanwhile, Essar will export other volumes globally and eventually supply the domestic market once India mandates SAF use.
India has set ambitious blending goals. The country aims for 1% SAF in international flights by 2027, rising to 2% by 2028 and 5% by 2030.
The project will require roughly ₹51 billion (about US$566 million) in initial investment. Subsequent capital spending could bring the total to around US$1 billion, including infrastructure like pipelines and water treatment facilities.
In related developments, Essar signed a MoU with the Gujarat government to support approvals and development. It plans to build the plant as part of broader efforts to expand green fuels and de-carbonize hard-to-abate sectors.This facility marks a significant push for clean biofuels in India’s energy transition. It could boost domestic SAF production while supporting export markets and climate goals.
Reference- Essar Future Energy website, BioEnergy Times, Biofuel Digist, Arugus Media