Indian Oil Corporation to set up sustainable aviation fuel plant with M11 Energy Transition

Indian Oil Corporation Limited (IndianOil) has approved the formation of a joint venture with M11 Energy Transition Pvt. Ltd. to establish a sustainable aviation fuel project at Paradip, in a significant move aimed at strengthening India’s clean aviation fuel ecosystem.

The decision was cleared during the company’s Board meeting held on May 18, 2026.

Under the approved plan, Indian Oil Corporation and M11 Energy Transition will form a 50:50 joint venture company to develop a 100 KTPA HEFA-based Sustainable Aviation Fuel (SAF) plant at Paradip.

The total project cost has been estimated at ₹1,063.60 crore, with a permissible variation of ±30%, subject to approvals from NITI Aayog and the Department of Investment and Public Asset Management (DIPAM).

Project aims to strengthen India’s green aviation ambitions

The proposed facility will focus on producing HEFA-based Sustainable Aviation Fuel, a cleaner alternative to conventional aviation turbine fuel.

HEFA, or Hydroprocessed Esters and Fatty Acids technology, is widely considered one of the most commercially mature pathways for producing sustainable aviation fuel globally.

The Paradip project is expected to support India’s broader efforts to reduce carbon emissions from the aviation sector while strengthening domestic clean energy capabilities.

Key details of the proposed project include:

• Formation of a 50:50 joint venture between IndianOil and M11 Energy Transition
• Development of a 100 KTPA SAF plant at Paradip
• Estimated project cost of ₹1,063.60 crore
• Use of HEFA technology for sustainable aviation fuel production
• Project subject to regulatory approvals from NITI Aayog and DIPAM

The investment reflects growing momentum around sustainable aviation fuels as governments and airlines worldwide face increasing pressure to reduce emissions from air travel.

SAF emerging as a critical aviation transition fuel

Sustainable Aviation Fuel has become one of the aviation industry’s most closely watched decarbonisation pathways because it can reduce lifecycle carbon emissions compared with traditional fossil-based aviation fuel.

Unlike experimental propulsion technologies such as hydrogen or fully electric aircraft, SAF can generally be used within existing aircraft engines and airport fuel infrastructure with limited modifications.

That makes it one of the most commercially viable short- and medium-term solutions for reducing aviation emissions.

Globally, airlines, energy companies and governments have accelerated investments in SAF production capacity as the sector works towards long-term net-zero commitments.

India has also been exploring ways to expand domestic SAF production to reduce dependence on imported fossil fuels while supporting sustainability goals.

The Paradip project aligns with those objectives.

Paradip emerging as an energy and industrial hub

The decision to locate the SAF project at Paradip is strategically significant.

Paradip already hosts major refining and energy infrastructure, making it an important industrial and petrochemical centre within India’s energy network.

For IndianOil, integrating sustainable fuel production within an established energy ecosystem could offer logistical and operational advantages.

The company has been increasingly expanding its focus beyond conventional fossil fuels into cleaner energy initiatives, biofuels and transition technologies.

The SAF project also signals rising collaboration between traditional energy companies and emerging clean energy firms as India accelerates its broader energy transition agenda.

Aviation sector under pressure to decarbonise

The aviation industry remains one of the more difficult sectors to decarbonise because of its heavy reliance on liquid fuel for long-haul operations.

While airlines globally continue investing in fleet modernisation and fuel-efficient aircraft, sustainable aviation fuel is expected to play an important role in reducing sector-wide emissions over the coming decades.

Industry bodies worldwide have repeatedly highlighted SAF availability and production scale as critical challenges for aviation’s climate transition.

India’s aviation market, one of the fastest-growing globally, is expected to face increasing pressure to align expansion with sustainability objectives.

Projects such as the proposed Paradip facility could therefore become increasingly important as airlines, regulators and fuel suppliers prepare for tighter environmental expectations.

IndianOil expands energy transition focus

For IndianOil, the joint venture represents another step in diversifying beyond traditional refining operations and participating more actively in emerging low-carbon fuel segments.

The company has already been involved in several alternative energy and clean fuel initiatives as India pushes to expand renewable and transition energy infrastructure.

The SAF investment comes at a time when governments globally are encouraging greater adoption of cleaner aviation fuels through policy incentives, blending mandates and sustainability targets.

Although the Paradip project still requires regulatory approvals, the Board-level clearance signals IndianOil’s intention to position itself within the growing sustainable aviation fuel market.

The project is also expected to contribute to:

• Aviation sector decarbonisation
• Domestic clean fuel production capacity
• Energy security goals
• Industrial investment at Paradip
• Long-term sustainability initiatives

As airlines worldwide search for scalable alternatives to conventional jet fuel, India’s push into sustainable aviation fuel production is beginning to gather momentum.

The proposed IndianOil-M11 Energy Transition venture could become an important early component of that emerging ecosystem.