IEW 2025 INTERVIEW: EIL targets 2026 Mangalore SAF refinery launch prioritizing palm stearin

State-owned engineering consultancy and technology licensing company Engineers India Ltd. aims to launch its commercial sustainable aviation fuel plant in Mangalore by the end of 2026.

The plant, utilizing the hydroprocessed esters and fatty acids pathway, will have a production capacity of 20 kiloliters/d (126 b/d), with used cooking oil and palm stearin as key feedstocks.

EIL is considering focusing mostly on palm stearin as an alternative feedstock due to its greater availability, given the challenges in aggregating sufficient quantities of UCO, Rajiv Agarwal, EIL technical director, told Platts, part of S&P Global Commodity Insights, on the sidelines of the India Energy Week 2025, held from Feb. 11 to Feb. 14.

"We are planning a large-scale plant, not a full commercial operation, but a semi-commercial facility that will provide the industry with confidence in the technology," Agarwal said. The project is currently in its advanced engineering and procurement phase.

The HEFA pathway is the most commercially mature SAF technology, contributing nearly 70% of the global SAF production. The plant's commissioning aligns with India's anticipated SAF mandate, which aims for a 1% blending requirement by 2027, scaling up to 5% by 2030.

However, policy support remains critical to drive cost reductions and commercial adoption. "SAF costs are significantly higher than conventional jet fuel, and clear government policies, including carbon credit mechanisms, will be necessary to encourage offtake by airlines," Agarwal said.

Bamboo-based 2G ethanol

EIL is also deeply involved in India's second-generation ethanol production.

The Numaligarh Refinery biorefinery in Assam, which utilizes bamboo as a feedstock, is nearing full operational capacity. With a processing capacity of 300,000 mt/year of bamboo, the refinery benefits from the feedstock's year-round availability, unlike other seasonal alternatives such as rice straw.

"Bamboo's advantage lies in its abundant and continuous availability. While first-of-its-kind projects come with execution challenges, future plants will see reduced implementation times and costs. We expect at least a 20% cost reduction for similar projects moving forward," Agarwal said.

The potential of bamboo as a biofuel feedstock is significant, particularly in Northeast India. A NITI Aayog report highlights the region's abundant bamboo resources, estimating over 55 million mt -- representing 66% of India's total bamboo reserves. Using Chempolis' fractionation technology, the plant could produce ethanol, along with valuable byproducts like furfural and acetic acid.

Bamboo's high cellulose content (40%-50%) ensures a significant yield of fermentable sugars for ethanol production. Additionally, bamboo's low input requirements, rapid carbon sequestration and ability to improve soil health position it as an environmentally friendly solution to reducing emissions while promoting sustainable energy.

Beyond bamboo, EIL is evaluating other biomass feedstocks for biofuel production, including areca nut, rice straw and even certain abundant bio-feedstocks found in Africa. While algae have been identified as a potential future source of biofuels, technological advancements are still required before they become commercially viable.

Commercial viability

India's SAF and biofuel sector faces challenges related to feedstock aggregation, policy incentives and technology costs. "There will be competition for biomass between ethanol and SAF production. Every technology will need to contribute to meeting the projected demand of 10 million mt of SAF by 2030," Agarwal said.

EIL has previously secured key contracts in the biofuels sector, including an order from Mangalore Refinery and Petrochemicals for a bioaviation turbine fuel plant using non-edible oils and UCO. These developments position EIL as a significant player in India's transition to sustainable fuels.

The company has collaborated with the Council of Scientific and Industrial Research-Indian Institute of Petroleum to develop biojet fuel processes and has already produced 10,000 liters of SAF approved for use in Indian Air Force aircraft.

Platts assessed SAF FOB Straits at $1,703.50/mt on Feb. 14, up $2.25/mt from Feb. 13. Platts assessed Asian fuel ethanol at $662.33/cu m CIF Philippines on Feb. 17 up $7.33/cu m day over day, tracking stronger US ethanol futures. Platts assessed grade B ethanol unchanged day over day at $630/cu m for cargoes arriving over April 18-May 18.