en.Wedoany.com Reported - IndianOil plans to form a 50:50 joint venture with M11 Energy Transition Private Limited to build a 100,000 tonnes per annum (100 KTPA) Hydroprocessed Esters and Fatty Acids (HEFA) sustainable aviation fuel plant at Paradip. The project was approved by IndianOil's board on May 18, 2026, with a cost estimate of INR 10.636 billion, subject to a +/-30% variance, and final implementation is contingent upon obtaining statutory and government approvals from NITI Aayog and DIPAM.

This joint venture focuses on the large-scale production of low-carbon aviation fuel, aiming to enhance India's domestic energy security and promote emission reductions in the aviation sector. IndianOil stated that this plant will serve as part of the company's energy transition strategy, while aligning with the national policy direction to reduce greenhouse gas emissions from transportation fuels. Under the plan, each joint venture partner will hold a 50% equity stake, and the production facility will utilize the HEFA process to convert vegetable oils and other suitable feedstocks into aviation-grade fuel that meets regulatory standards. The cost estimate covers capital expenditure and commissioning costs, with provisions for flexibility to respond to market and feedstock price fluctuations.

HEFA is considered a mature pathway for producing drop-in sustainable aviation fuel from lipid feedstocks. The selection of Paradip is primarily based on logistical advantages—proximity to feedstock sources and port facilities, facilitating integration with existing refining operations and the supply chain to minimize transportation and handling. IndianOil positions this joint venture as a key step in expanding low-carbon fuel supply and reducing dependence on fossil-based aviation fuel. The final investment decision and timeline will be announced after obtaining necessary approvals and completing project studies.

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