Indian Oil Corporation plans to shut down the diesel desulphurisation unit at its 300,000-barrel-per-day Panipat refinery for an upgrade that will enable the production of sustainable aviation fuel (SAF) starting next year, according to Arvind Kumar, the company’s head of refineries, reported Reuters.
Speaking at an industry event in New Delhi on Thursday, Kumar said the upgrade is expected to take place either later this year or in early 2025.
India has set a goal to blend 1% SAF into aviation fuel by 2027, increasing to 2% by 2028.
As per the news report, despite the planned shutdown, diesel production at the Panipat facility will remain unaffected, as the site is equipped with additional diesel hydrotreaters to compensate.
Once upgraded, the unit will be able to process used cooking oil (UCO) to produce around 30,000 metric tonnes of SAF annually, Kumar added.
Indian Oil, the country’s largest oil refiner, is also considering modifications to some of its kerosene-producing units at other refineries to enable SAF production.
In addition, the company is preparing to invite bids for a green hydrogen plant with a capacity of 70,000 tonnes per year, along with another SAF project.
Kumar noted that Indian Oil has already awarded a contract to Larsen & Toubro (L&T) to build a 10,000-tonnes-per-year green hydrogen facility at the Panipat refinery. L&T will construct and operate the plant, supplying green hydrogen to Indian Oil at a price of ₹397 (approximately $4.64) per kilogram.
India has set a target for refiners to meet 50% of their hydrogen requirements through green hydrogen by 2030.
