Indian Oil Corporation Ltd (IOCL) will temporarily shut its 3,00,000 barrels-per-day diesel desulphuriser at the Panipat refinery to upgrade it for producing sustainable aviation fuel (SAF) from used cooking oil (UCO).
SAF Production to Begin by 2026
The upgrade, scheduled for late 2025 or early 2026, is expected to yield 30,000 metric tons of SAF annually, according to Arvind Kumar, Head of Refineries at IOCL. Nevertheless, diesel production will remain unaffected during the shutdown, as backup hydrotreaters at the site will continue to ensure uninterrupted output.
The strategic move is part of India’s broader effort to reduce carbon emissions in the aviation sector. The government has set a target to blend one percent SAF by 2027, with plans to increase this to two percent by 2028. IOCL’s Panipat upgrade aligns directly with these national goals.
More SAF Projects in the Pipeline
Beyond Panipat, IOCL is evaluating retrofit options for other kerosene-producing units across its network of refineries. These upgrades will further expand SAF production capacity and contribute to India’s decarbonisation agenda.
Green Hydrogen Bids to Open Soon
IOCL plans to invite bids shortly for a new 70,000 tonnes-per-year green hydrogen facility and an additional SAF project. This comes as part of IOCL’s commitment to scaling up clean energy initiatives.
L&T to Build Panipat Green Hydrogen Unit
The company has awarded Larsen & Toubro (L&T) a contract to build a 10,000 tonnes-per-year green hydrogen plant at Panipat. L&T will supply green hydrogen at ₹397 per kg, marking a major step in India’s green hydrogen push.
Advancing India’s Green Hydrogen Vision
These developments support India’s national strategy to meet 50 percent of hydrogen demand through green hydrogen by 2030. According to projectstoday.com, IOCL’s investments in SAF and hydrogen projects further demonstrate its strong commitment to driving energy transition and accelerating decarbonisation efforts.
