Essar Future Energy, part of the Essar Global Fund, is planning to set up a large hydrotreated biofuels plant in India with a capacity of 800,000 tonnes per year. The project is expected to begin operations between the second half of 2028 and early 2029, reports Argus.
The proposed plant will be located in Devbhumi Dwarka district of Gujarat. The company expects to take a final investment decision on the project within the next few months, according to senior company officials. Once operational, the facility will process about one million tonnes of feedstock annually to produce sustainable aviation fuel (SAF) and hydrotreated vegetable oil (HVO).
The plant will mainly use fats, oils and greases as raw material, with used cooking oil sourced from within India as well as from overseas markets. The company is also looking at other possible inputs such as animal fat, oil derived from palm oil mill waste, and non-edible oils.
Fuel produced at the facility will meet international sustainability standards. A significant share of the output will be sent to the United Kingdom for use at Essar’s Stanlow refinery, where it will be blended with conventional jet fuel and diesel to meet renewable fuel requirements. The remaining volumes are expected to be exported to other markets and supplied domestically once India introduces mandatory SAF usage.
India has set targets to blend SAF in international flights, starting with 1 per cent by 2027, increasing to 2 per cent by 2028 and reaching 5 per cent by 2030.
The project will require an initial investment of about ₹51 billion, with further funding planned in stages, taking total capital spending to around $1 billion over the coming years. This amount also covers supporting infrastructure such as pipelines to ports and water treatment facilities.
Essar Future Energy recently signed an initial agreement with the Gujarat government to obtain approvals for setting up the plant.
