Essar Future Energy signs MOU with Gujarat government in India for new biofuel project

Essar Future Energy Ltd. announced Jan. 12 that it signed a memorandum of understanding (MOU) with the state government of Gujarat in India to establish a large-scale biofuel complex in the Devbhumi Dwarka district.

The initial feedstock processing capacity of the facility is expected to be 1 million metric tons per year.

The project involves a proposed investment of approximately USD$60 million and is expected to generate around 350 direct employment opportunities, with operations targeted to begin by 2029.

The project will focus on decarbonizing hard-to-abate sectors, offering clean-fuel solutions for aviation, shipping and road transport.

The MOU was signed in the presence of various state officials.

“As part of the state’s focus on building a green-energy ecosystem for energy independence, aligned with the vision of Viksit Gujarat-Viksit Bharat @ 2047, Gujarat continues to lead India’s journey in industrial growth and energy transition,” said Vibhav Agarwal, the CEO of Essar Future Energy. “Essar is proud to be at the forefront of this transformation, partnering with the government of Gujarat to develop future-ready, low-carbon energy solutions.”

The project is expected to contribute to regional development while strengthening Gujarat’s clean-fuels and bioenergy ecosystem.

With a presence in eight countries, Essar generates revenues of USD$15 billion and provides employment for over 10,000 people.

According to Essar, over the past five years the company has strategically rebalanced its portfolio by monetizing some world-class assets.

Essar added that it is now positioned to transition its existing assets to a greener regime and invest in businesses driving the transformation of sector landscapes from carbon-centric to a clean-energy ecosystem, both nationally and globally.

The group is developing sustainable assets and industry ecosystems with a particular focus on hydrogen, green mobility and green steel.