Indian Oil Corporation Ltd. (IOCL) has achieved a major milestone in clean energy transition with its Panipat refinery receiving international certification to produce sustainable aviation fuel (SAF) from used cooking oil. The International Civil Aviation Organization’s (ICAO) Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) awarded the refinery the ISCC certification.
“We are the only company in India to have received this certification,” said IOCL Chairman Arvinder Singh Sahney. “The refinery will begin producing 35,000 tons per annum of SAF from the end of this calendar year,” Sahney added.
Meeting India’s 2027 SAF blending mandate
The production capacity, according to Sahney, will be enough to meet India’s requirement of blending 1% SAF with conventional jet fuel by 2027. From that year, international airlines operating from India must use 1% SAF-blended aviation turbine fuel (ATF), as per government rules. SAF can be blended with ATF in proportions of up to 50%. Collection agencies will play a key role by sourcing used cooking oil from restaurants, hotels, and major food industry players such as Haldiram. They will then supply this oil to the Panipat refinery for processing.
Tackling the challenge of oil collection
Sahney emphasized that while a large volume of such oil exists across India, the challenge lies in collection logistics. “Large hotel chains are easy sources, but we still need solutions for collecting oil from small users, including households,” he explained. Highlighting the credibility of the process, he added that Panipat-produced SAF has undergone rigorous lifecycle carbon emission assessments and traceability checks. This paves the way for certified SAF integration into Indian airline operations.
Other Key Initiatives
Expanding beyond SAF, IOCL recently commissioned a ₹5,000 crore Butyl Acrylate (BA) unit at its Koyali refinery in Gujarat. The facility, with a capacity of 1,50,000 tons per annum, is only the second of its kind in India, after BPCL’s Kochi unit.
“The paint industry is growing at a CAGR of 13–14%, and most of its raw materials are imported. The Koyali BA unit, commissioned in July, will help eliminate these imports and save foreign exchange,” Sahney said. Together with BPCL’s facility, India can now substitute 80–90% of BA imports.
Green hydrogen project at Panipat refinery
Larsen & Toubro (L&T) has won the contract to build India’s largest green hydrogen facility at IOCL’s Panipat complex. The project will produce 10,000 tonnes of green hydrogen annually and L&T expects to complete it within 27 months. The green hydrogen will replace the grey hydrogen that IOCL currently uses in refining operations, substantially reducing the refinery’s carbon footprint.
Driving India’s Energy Transition
“IOCL remains agile and nimble in product innovation and meeting fast-changing energy dynamics,” Sahney remarked. As reported by msn.com, he added that IOCL’s SAF certification sets a benchmark for other refiners to scale production. This will help the aviation industry cut emissions and support India’s 2070 net-zero target.
