GPS Renewables Starts Building India's First Ethanol-to-Jet SAF Plant

GPS Renewables (GPSR) has commenced construction on India’s first commercial-scale Ethanol-to-Jet (ETJ) plant, a critical step toward establishing a domestic supply chain for Sustainable Aviation Fuel (SAF). The facility, located at the National Thermal Power Corporation (NTPC) Green Hydrogen Hub in Pudimadaka, Andhra Pradesh, is engineered to produce 1,800 tonnes per annum (TPA) of SAF, directly supporting India's upcoming aviation decarbonization mandates.

The project is a strategic response to the Indian government's push for greener aviation and energy independence. By creating a domestic source of SAF, the plant will help Indian carriers comply with the impending 1% SAF blending mandate for international flights, which takes effect in 2027. This national requirement aligns with India's obligations under the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA), a global framework managed by the International Civil Aviation Organization (ICAO).

Mainak Chakraborty, Co-founder and CEO of GPS Renewables, stated that the project aims to "bring a proven pathway to produce Sustainable Aviation Fuel from ethanol and enable the large-scale production of SAF in India." The project's technology and engineering are provided by established industry partners. Lummus Technology is supplying the licensed ETJ process and basic engineering, while Xytel India is managing the detailed engineering and procurement services. Romain Lemoine, Chief Business Officer at Lummus Technology, highlighted that their integrated solution provides a "scalable SAF configuration with reduced capital and operating costs and lower carbon intensity."

Regulatory and Market Drivers

The primary driver for this facility is the clear regulatory roadmap set by India's Ministry of Petroleum and Natural Gas. The national mandate requires a 1% SAF blend starting in 2027, scaling to 2% in 2028 and reaching 5% by 2030. This creates a guaranteed domestic market for the plant's output. According to the Indian Sugar and Bio-Energy Manufacturers Association (ISMA), India's total SAF requirement to meet its CORSIA targets is projected to be approximately 0.72 billion liters by 2030, underscoring the need for rapid capacity expansion.

The plant is an integral part of NTPC's much larger vision for the Pudimadaka Green Hydrogen Hub, which represents a planned investment of ₹1.85 lakh crore. By integrating SAF production, NTPC diversifies its green energy portfolio into high-value chemicals and fuels, leveraging synergies between green hydrogen production and CO2 capture to create synthetic feedstocks.

Technical Analysis and Industry Context

This development marks a significant shift in SAF production strategy, both in India and globally. The aviation industry is increasingly investing in the ETJ pathway as a scalable alternative to the Hydroprocessed Esters and Fatty Acids (HEFA) process, which relies on constrained feedstocks like used cooking oils and animal fats. ETJ technology can utilize ethanol from abundant agricultural waste or from synthetic processes combining captured carbon and green hydrogen, offering a more viable route to mass production.

The project in India follows a key global precedent. In January 2024, LanzaJet opened the world's first commercial-scale ETJ SAF plant in Georgia, USA, proving the technology's viability. The GPSR plant brings this proven model to India, localizing production and reducing reliance on imported fuels. This move indicates a broader industry trend of integrating SAF facilities within larger green energy hubs to optimize infrastructure and lower the carbon intensity of fuel production.

ETJ vs. HEFA Pathways

Stakeholder Impact

The project has significant implications for several key stakeholders. For Lummus Technology, it secures a critical contract for India's first ETJ plant, solidifying its position as a leading technology provider in the global SAF market. For Indian Airlines such as Air India and IndiGo, the facility represents a crucial future source of domestic SAF, essential for meeting the 2027 blending mandate without being solely dependent on volatile international markets. Finally, for NTPC Green Energy Limited (NGEL), the project validates its Green Hydrogen Hub strategy, adding a major tenant and establishing a new revenue stream in advanced biofuels.

What Comes Next

The project timeline is aligned with India's regulatory schedule. The most critical upcoming milestone is the nationwide implementation of the 1% SAF blending mandate for international flights, which is confirmed to start in January 2027. According to GPS Renewables, the Engineering, Procurement, and Construction (EPC) contract for the Pudimadaka plant runs through March 2029, a scope that includes the plant's construction, commissioning, and one year of post-commissioning operations.

Why This Matters

This plant is more than just a new industrial facility; it represents the foundation of India's aviation decarbonization strategy. By establishing domestic production of SAF via a scalable pathway, India reduces its long-term strategic vulnerability to volatile fossil fuel markets and imported green fuels. The project kickstarts a new industrial ecosystem for advanced biofuels, positioning the country to meet its international climate commitments while fostering energy security.