Indian Oil, LanzaJet may collaborate for production of green aviation fuel

13 Apr 2023 , 11:57 AM

According to sources familiar with the matter, Indian Oil Corporation is in talks to establish a collaborative project with LanzaJet Inc, a clean energy technology firm based in the United States, as well as several domestic airlines, to produce sustainable aviation fuel (SAF).

Sources have revealed that a new venture is being planned to construct a facility utilizing alcohol-to-jet technology at Indian Oil Corporation’s Panipat refinery in Haryana for the production of sustainable aviation fuel (SAF). The project is estimated to cost Rs 3,000 crore.

Under the proposed arrangement, Indian Oil Corporation will possess a 50% share in the newly formed enterprise, while LanzaJet Inc will hold a 25% share. The remaining 25% stake will be made available to a group of airline companies.

As per sources, IOCL has agreed to invest Rs 1,500 crore, while LanzaJet Inc has agreed to invest Rs 750 crore. The balance investment will be contributed by airline companies that choose to participate in the new venture.

The planned facility will employ advanced technology to transform corn-based, cellulosic, or sugar-based ethanol into sustainable aviation fuel (SAF). The plant is projected to produce an initial output of 85,000 metric tonnes of fuel per year.

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