INDIA’S FIRST SUSTAINABLE AVIATION FUEL PLANT
Context
- On August 18, 2025, Indian Oil Corporation (IOC) announced that its Panipat refinery will begin commercial-scale production of Sustainable Aviation Fuel (SAF) by December 2025.
- The project marks a major step in India’s green transition in aviation fuel and supports global decarbonisation goals.
WHAT IS SAF?
- SAF is a biofuel made from sustainable feedstocks (e.g. used cooking oil, agricultural waste, ethanol).
- It is like conventional aviation turbine fuel (ATF) and can be used in current aircraft engines.
- Airbus and others claim their aircraft can fly on up to 50% SAF-ATF blends.
KEY HIGHLIGHTS OF THE PROGRAM
- Location: Panipat Refinery, Haryana
- Production capacity: 35,000 tonnes/year SAF from used cooking oil (UCO)
- Feedstock Sources: Major restaurant chains, hotels, food companies (e.g. Haldiram’s)
- Challenge: Collection from small users and households
CERTIFICATIONS & COMPLIANCE
- IOC is the first Indian company to receive ISCC CORSIA certification.
- ISCC CORSIA: A globally recognized sustainability certification required for SAF under:
CORSIA (Carbon Offsetting and Reduction Scheme for International Aviation).
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- This certification authorizes commercial SAF production and sets a benchmark for other Indian refiners.
GLOBAL & NATIONAL RELEVANCE
- CORSIA Compliance:
- From 2027, international airlines must offset CO₂ emissions beyond 2020 levels.
- SAF blending is a key method to comply.
- India’s SAF Blending Targets (set by the National Biofuel Coordination Committee):
- 1% by 2027 (international flights)
- 2% by 2028
- Potential Buyers: European airlines (already subject to SAF mandates)
- Export Prospects: SAF demand is expected to surge globally in the coming years.
FUTURE PATHWAYS
- Used Cooking Oil Pathway: Certified and ready for launch
- Alcohol-to-Jet Pathway: IOC developing plants using ethanol to produce SAF
- Multiple SAF Pathways Under Development: Other Indian companies are also setting up SAF units (need certifications before operations begin)
ECONOMIC & POLICY CHALLENGES
- High production cost: SAF currently costs 3x more than conventional jet fuel.
- Airline Resistance: Concerns about fuel cost escalation
- Domestic SAF Mandates: Government likely to wait until 2027 or later to mandate SAF for domestic flights
WHY THIS MATTERS?
- Decarbonising Aviation: SAF could contribute 60% of the global aviation sector’s emissions reduction.
- Circular Economy: Utilizes waste (used cooking oil) for energy production.
- Energy Security: Reduces dependency on fossil fuels; aligns with India’s Net Zero 2070 goals.
- Green Diplomacy: Positions India as a potential SAF exporter, strengthening international partnerships in climate action.
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