Indian Oil to start SAF production in December
Indian Oil Corporation
, the country's largest refiner, will begin producing
sustainable aviation fuel
(
SAF
) in December, said chairman A. S. Sahney.
The company's
SAF production
unit, located alongside its refinery in Panipat, Haryana, will have an annual capacity of 35,000 tonnes. This output will be enough to meet the entire SAF blending requirement for international airlines in India by 2027, Sahney said.
India has adopted a phased approach to SAF, starting with a mandate for 1% blending in jet fuel for international flights by 2027, rising to 2% by 2028.
SAF will cost nearly three times more than conventional
aviation turbine fuel (ATF)
, but finding buyers will not be an issue, Sahney said, as airlines must comply with the blending mandate. If the Panipat facility's output is not fully absorbed domestically, Indian Oil will explore exports, he added.
Used cooking oil
(UCO) will serve as the feedstock for SAF production. 'Arranging feedstock is not a challenge. There is ample collection of UCO in the country, most of which is currently exported,' Sahney said.
Indian Oil plans to tap into the existing UCO aggregation network, which sources oil mainly from large hotels, restaurant chains, and traditional snack makers.
The Panipat unit has also obtained
ISCC CORSIA certification
—a prerequisite for commercial SAF production. Indian Oil is currently the only company in India to hold this certification for producing SAF from used cooking oil, valid for the next one year, Sahney said.
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