#India #Sustainable Aviation Fuel #Velocys #Varhad Capital #Nagpur

Varhad Capital and Velocys Unite for Sustainable Aviation Fuel Development

On April 6, 2026, in a move that highlights the growing importance of sustainable fuel production, Velocys, a recognized provider of sustainable fuel technology, joined hands with Varhad Capital Pvt Ltd, an India-based biofuel project development firm. The two companies announced the signing of a Memorandum of Understanding (MoU) aimed at creating a new generation of cost-competitive biomass-to-Sustainable Aviation Fuel (SAF) projects in India.

This partnership is significant, not only because it merges the expertise of both companies, but it also highlights India's vast potential in the SAF market. With an abundance of agricultural residues and a soaring demand for aviation fuel, this initiative represents a timely response to pressing environmental and energy needs. However, the key to success will be efficiently overcoming the challenges related to producing SAF at a competitive cost and scale.

The Alliance's Vision

Under the agreement, Velocys and Varhad will collaborate to engineer scalable facilities that convert indigenous agricultural residues into SAF. By leveraging Varhad’s established gasification platform—which produces syngas and biochar from agricultural by-products—alongside Velocys’ proven Fischer-Tropsch (FT) technology, the partnership aims to establish a streamlined and efficient method for producing sustainable aviation fuels.

As Sachin Joshi, Chief Commercial Officer of Velocys, noted, this collaboration aims at merging two commercially successful technologies to enhance productivity in biomass-to-fuels production. ''This project is not just about technology but creating a commercially competitive alternative in the market,'' Joshi emphasized.

The Pathway to Cost-Effective Fuel

The ultimate goal of this partnership is to create a Make-In-India SAF that meets or exceeds the cost-effectiveness of conventional fuel production methods while demonstrating commendable lifecycle carbon performance. According to Prasad Dahapute, Founder and Managing Director of Varhad, their existing capabilities in gasification will expedite the transition from agricultural waste to fuel production effectively, aligning their operations with market needs and strategies for sustainability.

As the world moves towards greener solutions, India is uniquely positioned with its vast agricultural sector. The collaboration aims to set a scalable hub-and-spoke model for SAF production, ensuring that each stage of production is efficient, reliable, and can accommodate the regional needs.

A Commitment to Sustainability

Varhad Capital is already making strides in the bioproduct domain as a recognized developer of biochar under various international standards. The company aims to further its sustainable agenda by focusing on energy transition opportunities, especially in the biofuel sector. Velocys, with its innovative technology that converts waste and biomass into clean fuels, also stands as a leader in reducing carbon footprints in fuel production.

The union of Varhad and Velocys represents a critical step in the transition toward sustainable aviation solutions, showcasing how innovation can stem from local resources to meet global demands responsibly. The implications of this partnership extend beyond just fuel production; they signal a growing trend towards sustainable infrastructure and energy solutions, setting a benchmark for future collaborations in the sector.

Conclusion

As both companies embark on this challenging yet rewarding endeavor, the successful implementation of these biomass-to-SAF projects could potentially reshape the landscape of aviation fuel in India and beyond. The commitment to utilizing local agricultural residues not only paves the way for cost-effective fuel production but also underscores a significant step towards sustainable environmental practices and economic growth within the region.