Industrial biotech firm Praj Industries and Indian Oil Corporation will form a joint venture to produce sustainable aviation fuel (SAF). ATJ fuel will help curb aircraft emissions.

Pramod Chaudhari, founder chairman of Praj Industries, said the IOC board approved the joint venture, and further approvals are expected by the end of the year. Praj and the IOC signed an MoU last year to explore opportunities for fast-tracking alcohol-to-jet (ATJ) fuel, 1G, 2G ethanol and compressed biogas production.

Indian Oil Corporation chairman Shrikant Madhav Vaidya said they are working with US cleantech company LanzaJet to set up the first SAF plant in Panipat and are open to a second SAF joint venture with Praj. He said that robust SAF technology is needed, and that’s where Praj can make a difference.

Vaidya said he expects airlines to invest and commit to using SAF. He recently met with airline CEOs, who offered to invest in equity. Vaidya said the IOC doesn’t need to invest in the factory, but the joint venture wants offtake commitments from airlines keen for equity. The IOC could consider transferring a 2-5% stake to each airline interested in investing in the SAF joint venture.

Chaudhari said SAF is an emerging solution for clear skies, and Praj is developing a resilient industry ecosystem to capitalise on the promising opportunities in SAF. Praj is in talks with Asian airlines and the DGCA to operate India’s first commercial passenger flight using SAF blend.

Praj collaborated with Gevo, Inc USA, to develop the production technology for SAF. Praj signed a memorandum of understanding with France’s Axens to construct the SAF project.

Praj and Indian Oil JV plan to set up multiple facilities in India to produce around 400 to 500 tonnes of SAF per day by 2030 by using sustainable feedstocks such as cane molasses, cane syrup and deploying low-carbon intensity alcohol-to-jet technology.

“We are trying to be a greener company and working on energy efficiency because it is a low-hanging fruit that can dramatically reduce greenhouse gas emissions. Biofuels are in our basket to achieve net zero operational energies,” Vaidya said during a visit to Praj Matrix, Praj Industries’ industrial biotechnology research and development arm, which supports all new generation biofuel technologies, including SAF, for reducing carbon emissions.

The Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) guidelines call for airlines to achieve 2% blending by 2025 and 5% by 2030 to reduce aviation’s carbon emissions significantly.