Essar Energy Transition receives £2.5m UK grant for SAF

  • Gas
  • July 22, 2025

Essar Energy Transition (EET), a UK subsidiary of Indian multinational Essar Group, has been awarded £2.5m from the UK government’s Department for Transport (DfT), as part of its Advanced Fuels Fund (AFF) scheme, to develop plans for a  sustainable aviation fuels (SAF) production hub at its Stanlow refinery.

EET plans to establish a methanol-to-jet (MtJ) production hub capable of producing 200,000 tonnes per annum (tpa) of advanced SAF, using around 550,000 tpa of renewable e-methanol and bio-methanol sourced in the UK and internationally, including from its sister company –  Essar Future Energies – which is developing an e-methanol project in Gujarat, India.

Having completed a feasibility study earlier in 2025, the receipt of the AFF grant enables EET to advance to the pre-front-end engineering design (pre-FEED) stage.  It is targeting completion of pre-FEED by March 2026, with full FEED commencing in the second quarter 2026 and final investment decision (FID) by the end of 2027.

The MtJ production hub’s location at Stanlow should be able to leverage existing import infrastructure, enabling access to the most competitive, low cost and low carbon intensity methanol feedstocks.

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