SAF One India Espicompact To Set Up ₹1,356 Crore Sustainable Aviation Fuel Unit In Kakinada, Andhra Pradesh

Petroleum Aug 17,2026

A greenfield sustainable aviation fuel (SAF) manufacturing unit with an investment of ₹1,356.2 crore (₹13,562.2 million) will be established in Kakinada district, Andhra Pradesh, Deputy Chief Minister Pawan Kalyan announced while addressing the 80th Independence Day celebrations at the Police Parade Grounds in Kakinada.

Approval for the project has been accorded to SAF One India Espicompact, a subsidiary of Dubai-based SAF One Energy Management Limited, to set up the plant near the port city. The announcement forms part of a broader push by the state to develop alternative fuel manufacturing capacity aligned with national and global efforts to reduce carbon intensity in transport fuels.

The project follows an earlier allotment by the Andhra Pradesh government of 45 acres of land in Kakinada to the company for an SAF production facility, recommended by the State Investment Promotion Board (SIPB) under the Andhra Pradesh Maritime Board (APMB) Land Allotment Guidelines, 2026. That facility, with a proposed investment of ₹1,835 crore, is expected to generate around 2,500 direct and indirect employment opportunities in the region.

The Deputy CM's remarks did not elaborate on further project timelines. Local officials have indicated that site identification and preliminary clearances for related works are under way.

The Kakinada region has been seeing a broader wave of clean-energy investment, including a separate ₹13,000 crore green ammonia and green hydrogen complex being developed nearby by AM Green with global partners Petronas, GIC and ADIA, expected to start production by the end of 2027 and create around 8,000 jobs.

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