IndianOil To Form JV For Sustainable Aviation Fuel Project At Paradip
AVIATION & AIRPORTS

IndianOil To Form JV For Sustainable Aviation Fuel Project At Paradip

The Board of Indian Oil Corporation (IndianOil) approved the formation of a 50:50 joint venture with M11 Energy Transition Private Limited to develop a 100 KTPA Hydroprocessed Esters and Fatty Acids (HEFA) based Sustainable Aviation Fuel plant at Paradip. The decision was taken at the company board meeting on 18 May 2026, and the project cost is estimated at Rs 10,636 million with a plus or minus thirty per cent tolerance. The proposal remains subject to statutory and Government approvals from NITI Aayog and DIPAM.

The project is intended to accelerate the development of sustainable and low-carbon aviation fuel and to bolster domestic energy security. IndianOil indicated that the plant will contribute to the company’s energy transition objectives and support decarbonisation efforts in the aviation sector. The initiative aligns with broader national policy to reduce greenhouse gas emissions from transport fuels.

Under the proposed structure, IndianOil and M11 Energy Transition will each hold fifty per cent of the equity in the Indian joint venture. The facility will use HEFA technology to convert vegetable oils and other suitable feedstocks into jet-grade fuel that meets regulatory specifications. Cost estimates include capital expenditure and commissioning costs and carry a contingency range reflecting market and feedstock uncertainties.

HEFA represents an established pathway for producing a drop in Sustainable Aviation Fuel from lipid feedstocks, and the Paradip site was selected for its logistical advantages. Proximity to feedstock sources and port facilities was cited as a factor in site selection, and the project has been designed to integrate with existing refinery operations and supply chains to optimise logistics. The design seeks to minimise additional transportation and handling.

IndianOil views the venture as part of its strategy to expand low-carbon fuel options and support the aviation industry's transition to cleaner fuels. Final investment decision and timelines will follow receipt of requisite approvals and completion of project studies. The company has positioned the plant as a step towards reducing reliance on fossil-based aviation fuels and enhancing capability in sustainable fuel production.

The Board of Indian Oil Corporation (IndianOil) approved the formation of a 50:50 joint venture with M11 Energy Transition Private Limited to develop a 100 KTPA Hydroprocessed Esters and Fatty Acids (HEFA) based Sustainable Aviation Fuel plant at Paradip. The decision was taken at the company board meeting on 18 May 2026, and the project cost is estimated at Rs 10,636 million with a plus or minus thirty per cent tolerance. The proposal remains subject to statutory and Government approvals from NITI Aayog and DIPAM. The project is intended to accelerate the development of sustainable and low-carbon aviation fuel and to bolster domestic energy security. IndianOil indicated that the plant will contribute to the company’s energy transition objectives and support decarbonisation efforts in the aviation sector. The initiative aligns with broader national policy to reduce greenhouse gas emissions from transport fuels. Under the proposed structure, IndianOil and M11 Energy Transition will each hold fifty per cent of the equity in the Indian joint venture. The facility will use HEFA technology to convert vegetable oils and other suitable feedstocks into jet-grade fuel that meets regulatory specifications. Cost estimates include capital expenditure and commissioning costs and carry a contingency range reflecting market and feedstock uncertainties. HEFA represents an established pathway for producing a drop in Sustainable Aviation Fuel from lipid feedstocks, and the Paradip site was selected for its logistical advantages. Proximity to feedstock sources and port facilities was cited as a factor in site selection, and the project has been designed to integrate with existing refinery operations and supply chains to optimise logistics. The design seeks to minimise additional transportation and handling. IndianOil views the venture as part of its strategy to expand low-carbon fuel options and support the aviation industry's transition to cleaner fuels. Final investment decision and timelines will follow receipt of requisite approvals and completion of project studies. The company has positioned the plant as a step towards reducing reliance on fossil-based aviation fuels and enhancing capability in sustainable fuel production.

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