Future Energy Limited has announced a strategic investment of ?5,100 crore to establish a large-scale greenfield bio-fuel complex in Gujarat’s Devbhumi Dwarka district. 
Located near Kajurda village in the Khambhaliya region, the project marks a significant step in the Essar Group’s shift toward cleaner energy infrastructure, aligning with India’s expanding low-carbon fuel roadmap.

Designed to process 1 million tonnes of feedstock annually in its initial phase, the complex will utilise biogenic waste streams including used cooking oil (UCO) and palm oil mill effluent (POME).

The company formalized the commitment by signing a Memorandum of Understanding (MoU) with the Government of Gujarat during a Vibrant Gujarat-linked regional investment event held in Rajkot in early January 2026. Essar said the facility is expected to generate, with commercial operations targeted to begin by 2029.

The facility is planned as an export-oriented unit, strengthening Gujarat’s ambition to become a manufacturing base for advanced green fuels that can serve both domestic blending requirements and global demand.

The complex will focus on three primary products:

• Sustainable Aviation Fuel (SAF): to support aviation decarbonisation
• Hydrotreated Vegetable Oil (HVO): a renewable diesel alternative for road transport and shipping
• Bio-naphtha: a greener feedstock for petrochemical and refining applications

Commenting on the development, Mr. Vibhav Agarwal, CEO of Essar Future Energy Limited, said the project aligns with Gujarat’s long-term industrial and sustainability priorities.
“This initiative is aligned with the vision of ‘Viksit Gujarat – Viksit Bharat @ 2047’,” Mr Agarwal said. “We are proud to partner with the state to develop future-ready, low-carbon energy solutions that support both industrial growth and global sustainability.”
The MoU was exchanged in the presence of senior Gujarat government leaders and officials from the Energy & Petrochemicals Department, signalling strong backing for the state’s growing clean-fuels ecosystem.

The company formalized the commitment by signing a Memorandum of Understanding (MoU) with the Government of Gujarat during a Vibrant Gujarat-linked regional investment event held in Rajkot in early January 2026.