Varhad Capital Pvt Ltd and Velocys have entered into a Memorandum of Understanding (MOU) to advance sustainable aviation fuel (SAF) projects in India. This collaboration seeks to integrate Varhad Capital’s established biomassBiomass is a complex biological organic or non-organic solid product derived from living or recently living organism and available naturally. Various types of wastes such as animal manure, waste paper, sludge and many industrial wastes are also treated as biomass because like natural biomass these More gasificationGasification is a high-temperature, thermochemical process that converts carbon-based materials into a gaseous fuel called syngas and solid by-products. It takes place in an oxygen-deficient environment at temperatures typically above 750°C. Unlike combustion, which fully burns material to produce heat and carbon dioxide (CO2​), gasification More infrastructure with Velocys’ proprietary Fischer-Tropsch (FT) technology. By utilizing abundant agricultural residues as feedstockFeedstock refers to the raw organic material used to produce biochar. This can include a wide range of materials, such as wood chips, agricultural residues, and animal manure. More, the partnership aims to develop a scalable hub-and-spoke production model that aligns with the “Make in India” initiative. The projects are designed to deliver cost-competitive, low-carbon intensity fuels while simultaneously generating biocharBiochar is a carbon-rich material created from biomass decomposition in low-oxygen conditions. It has important applications in environmental remediation, soil improvement, agriculture, carbon sequestration, energy storage, and sustainable materials, promoting efficiency and reducing waste in various contexts while addressing climate change challenges. More and syngasSyngas, or synthesis gas, is a fuel gas mixture consisting primarily of hydrogen and carbon monoxide. It is produced during gasification and can be used as a fuel source or as a feedstock for producing other chemicals and fuels.   More through existing operational platforms.

The primary challenge addressed by this partnership is the economic and logistical difficulty of producing SAF at a scale that can compete with conventional fossil-based aviation fuels. While India possesses a vast supply of agricultural waste, converting these dispersed residues into high-quality fuel typically requires significant capital and complex supply chain management. Furthermore, meeting strict lifecycle carbon performance standards while maintaining price parity with traditional kerosene remains a barrier to widespread adoption within the aviation sector.

To resolve these issues, the companies are deploying a modular and technically integrated solution. Varhad Capital contributes an operational gasification platform that is already registered with international carbon standards, such as Carbon Standard International and Isometric, for the production of biochar and syngas. Velocys provides its microFTL™ technology, which utilizes AlphaCore™ microchannel reactors and specialized catalysts to efficiently convert syngas into drop-in liquid fuels. This combination allows for a direct and decentralized pathway from raw biomass to refined fuel, optimizing the value chain by leveraging pre-existing gasification assets.

The anticipated outcomes of this MOU include the establishment of high-yield biomass-to-SAF facilities that support India’s energy transition goals. By co-producing biochar, the projects facilitate carbon dioxide removal (CDR), providing an additional revenue stream through carbon credits which improves the overall project economics. This integrated approach is expected to streamline the production of sustainable fuels, making them more commercially viable for the domestic market. Consequently, the collaboration strengthens India’s position as a producer of sustainable energy while providing a replicable framework for biomass utilization and carbon sequestration.