
Andhra Pradesh leases 45 acres to SAF One India for a ₹1,835 crore sustainable aviation fuel plant. The 30-year deal signals state support for India's blending mandates.
The Andhra Pradesh government has allotted 45 acres of land in Kakinada to SAF One India SPKompact for a sustainable aviation fuel production facility. The total investment stands at ₹1,835 crore. The land, owned by the Andhra Pradesh Maritime Board, will be leased for 30 years under an as-is-where-is arrangement. The company must obtain all regulatory clearances before starting construction. The state's Investment Promotion Board backed the proposal earlier.
SAF One is a subsidiary of SAF One Energy Management Limited, based in Dubai. The facility is expected to generate 2,500 direct and indirect jobs.
The project adds to a growing pipeline of SAF plants in India. The country has set blending mandates for international flights, aiming to cut aviation emissions. Most global SAF output is in Europe and North America. India's feedstock advantage – cheap used cooking oil and agricultural residues – could help local producers compete on cost. The plant's specific feedstock choice is not yet public.
Sustainable aviation fuel is made from renewable feedstocks and can reduce lifecycle carbon emissions by up to 80% compared to conventional jet fuel. Production capacity has been a bottleneck, with SAF currently costing three to five times more than standard jet fuel. The Kakinada facility will help address that supply gap. Output relative to India's total jet fuel demand remains small.
India's broader push for lower-carbon fuels is reshaping its energy mix, as covered in AlphaScala's commodities analysis. The 30-year lease signals state-level support for energy transition projects. Permitting and feedstock availability remain execution risks.
The next milestone for the project will be obtaining environmental and other clearances. No timeline for construction start has been announced.
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