New Delhi: Indian Oil Corporation (IOC), the country’s largest refiner, will start producing sustainable aviation fuel (SAF) in December at its Panipat refinery in Haryana, chairman A. S. Sahney announced, reports The Economic Times.
The new unit will have an annual capacity of 35,000 tonnes, enough to meet India’s entire SAF blending requirement for international airlines by 2027, when a 1% blending mandate comes into force. The mandate will rise to 2% in 2028.
Although SAF will cost nearly three times more than conventional aviation turbine fuel (ATF), Sahney said demand would not be an issue since airlines must comply with the mandate. If domestic demand falls short, IOC will consider exports.
The Panipat facility will use used cooking oil (UCO) as feedstock. “Arranging feedstock is not a challenge. There is ample collection of UCO in the country, most of which is currently exported,” Sahney said.
The unit has received ISCC CORSIA certification, a global prerequisite for commercial SAF production. IOC is currently the only Indian company with this certification for SAF made from used cooking oil, valid for one year.
