Essar Future Energy, a subsidiary of the Essar Global Fund, is planning to establish a large-scale hydrotreated biofuels plant in India with an annual capacity of 800,000 tonnes. The project, expected to commence operations between 2028 and 2029, will be located in the Devbhumi Dwarka district of Gujarat. The company aims to make a final investment decision on the project within the next few months. Upon operationalization, the facility will process approximately one million tonnes of feedstock per annum to produce sustainable aviation fuel (SAF) and hydrotreated vegetable oil (HVO).
The plant will primarily utilize fats, oils, and greases as raw materials, sourcing used cooking oil from both domestic and international markets. Other potential inputs include animal fat, oil derived from palm oil mill waste, and non-edible oils. The fuel produced will meet international sustainability standards, with a significant portion being exported to the United Kingdom for use at Essar’s Stanlow refinery. Here, it will be blended with conventional jet fuel and diesel to meet renewable fuel requirements. The remaining output will be exported to other markets and supplied domestically once India introduces mandatory SAF usage.
India has set ambitious targets for SAF blending in international flights, starting with 1% by 2027, increasing to 2% by 2028, and reaching 5% by 2030. The project will require an initial investment of approximately ₹51 billion, with further funding planned in stages, taking total capital spending to around $1 billion over the coming years. This investment will also cover supporting infrastructure, including pipelines to ports and water treatment facilities. Essar Future Energy has recently signed an initial agreement with the Gujarat government to obtain necessary approvals for setting up the plant.
The project is expected to play a significant role in India’s transition to sustainable energy, contributing to the country’s renewable fuel requirements and reducing its dependence on fossil fuels. With its large capacity and commitment to sustainability, the hydrotreated biofuels plant is poised to become a major player in the global renewable energy market. Essar Future Energy’s investment in this project demonstrates its commitment to reducing carbon emissions and promoting sustainable development, aligning with India’s climate goals and vision for a cleaner, greener future.