Praj Industries, Indian biotechnology company has joined hands with Indian Oil Corporation (IOC) for the production of Sustainable Aviation Fuel (SAF). Praj and IOC signed an MoU last year to explore opportunities to fast-track the production of Alcohol to Jet (ATJ) fuels, 1G, 2G ethanol and compressed bio-gas.
The IOC board approved the joint venture and further approvals are expected by the end of the year.
Shrikant Madhav Vaidya, chairman, Indian Oil, said: IOC is also setting up the first SAF plant in collaboration with LanzaJet at Panipat and they were open to setting up a second SAF JV with Praj. Robust SAF technology was needed and that is where Praj had a role to play.”
The ICO Chairman recently held a meeting with the CEOs od airlines and on a positive note the airlines have expressed willingness to invest in equity. IOC could consider off-loading 2-5% equity to each of the airlines interested in investing in the SAF Joint Venture.
Praj has partnered with Gevo, Inc USA for developing technology for the production of SAF. Praj has an MoU with Axens of France for building SAF projects.
The Praj and Indian Oil JV has plans to set up multiple facilities in India to produce around 400 to 500 tons per day of SAF by 2030 by using sustainable feedstock such as cane molasses, cane syrup and deploying low carbon intensity alcohol-to-Jet technology.
