NEW DELHI: Cooking oil discarded after frying in homes and restaurants will now help power aircraft, with IndianOil’s Panipat refinery in Haryana becoming the first in the country to receive global certification to produce sustainable aviation fuel (SAF) from used oil, Chairman Arvinder Singh Sahney said.
SAF, derived from non-petroleum feedstocks, cuts aviation emissions and can be blended up to 50% with conventional jet fuel. India has mandated 1% SAF blending in fuel sold to international airlines from 2027.
IndianOil’s Panipat refinery has secured the International Civil Aviation Organization’s ISCC CORSIA certification—part of the UN scheme for reducing aviation emissions—making it the only refinery in India authorized to produce SAF from used cooking oil. Production of about 35,000 tonnes per year is set to begin by the end of 2025, enough to meet the 2027 mandate.
Agencies will collect used oil from hotels, restaurants, and large food producers like Haldiram and supply it to the refinery. While collection from large chains is easier, tapping smaller sources such as households remains a challenge.
Alongside this milestone, IndianOil has commissioned a ₹5,000 crore Butyl Acrylate (BA) plant at its Koyali refinery in Gujarat. With a capacity of 1.5 lakh tonnes annually, it will sharply reduce the country’s dependence on imported paint feedstock, replacing nearly 80–90% of imports when combined with BPCL’s Kochi plant.
On the green hydrogen front, IndianOil has awarded a contract to L&T for the country’s largest plant—10,000 tonnes per year at Panipat—expected to be ready in 27 months. Unlike grey hydrogen from fossil fuels, green hydrogen is produced by splitting water using renewable energy, making it a clean fuel alternative.
Sahney highlighted that IndianOil is pushing forward with multiple green energy initiatives, including 2G ethanol, bio-diesel, fuel cells, and energy storage solutions. “IndianOil remains agile and nimble in product innovation, keeping pace with fast-changing energy dynamics,” he said.
The SAF certification ensures the fuel meets strict environmental and social standards, providing airlines with a verified pathway to decarbonize operations. It also sets a precedent for other Indian refiners to scale up production in line with the government’s net-zero emissions goal for 2070.
India will gradually raise SAF blending, starting with 1% for international flights in 2027 and increasing in subsequent years. Domestic airlines have already conducted successful test flights—SpiceJet in 2018 with a 25% biofuel blend and IndiGo in 2022 with 10%.
With this recognition, IndianOil has reaffirmed its leadership in India’s clean energy transition, bringing the nation closer to a greener aviation future.
