TruAlt Bioenergy pushes back SAF project as ethanol volumes miss targets
The company missed ethanol sales by 35% amid an allocation dispute with oil marketers, while its sustainable aviation fuel project now faces a two-year delay.
— 3 earlier stories on TruAlt Bioenergy Ltd. →What's new
- Oil Marketing Companies allocated 26 crore liters of ethanol, against TruAlt's 72-crore bid.
- Sustainable aviation fuel (SAF) commissioning delayed from August 2027 to FY29.
- Joint ventures with Sumitomo and GAIL aim for 162 tonnes per day of biogas capacity by Q4 FY27.
Why this matters
The company’s growth narrative hinges on diversifying from ethanol into SAF and biogas. A delay in the SAF project, coupled with persistent friction over ethanol allocations, suggests that scaling these new lines will take longer than investors had been led to expect.
What we're watching
- Implementation status of the 15-crore-liter court order for ethanol supply.
- Progress on securing long-term offtake agreements for the SAF project.
- Capacity ramp-up milestones for the new compressed biogas plants.
The full read
TruAlt Bioenergy’s ethanol business is running into structural headwinds. Management confirmed on May 22 that fiscal 2026 sales volume finished 35% below their internal target, pinned on Oil Marketing Companies granting only 26 crore liters against the company's 72-crore bid. A 15-crore-liter supply gap remains stuck in legal proceedings. Beyond the current core, the company is recalibrating its future: the sustainable aviation fuel (SAF) project has slipped from an August 2027 target to FY29. Management cited the need for firm long-term offtake agreements before committing capital to a final investment decision. In the interim, TruAlt is betting on compressed biogas (CBG) expansion via joint ventures with Sumitomo and GAIL. That business is slated to hit 162 tonnes per day by Q4 FY27. What changes from here is the visibility of that SAF revenue, which now sits behind a multi-year delay and a requirement for new contracts.
TruAlt Bioenergy Ltd.
Latest quarter · Mar 2026
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All notes on TRUALT →- 22 May 2026 · 6:44 PM IST TruAlt Bioenergy pushes back SAF project as ethanol volumes miss targets
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