India’s Sustainable Aviation Fuel Production
India is set to begin commercial production of sustainable aviation fuel (SAF) at scale by December 2025. Indian Oil Corporation (IOC), the country’s largest fuel refiner and retailer, has received international certification for manufacturing SAF from used cooking oil at its Panipat refinery. This marks step towards reducing carbon emissions in the aviation sector.
Recent Developments in SAF Production
IOC has secured the ISCC CORSIA certification, essential for commercial SAF production under the Carbon Offsetting and Reduction Scheme for International Aviation. The Panipat refinery will produce 35,000 tonnes of SAF annually from used cooking oil. This volume aligns with India’s target of 1 per cent SAF blending for international flights by 2027. The certification also sets a precedent for other Indian refiners to expand SAF manufacturing.
Feedstock Sourcing
The primary feedstock for IOC’s SAF is used cooking oil collected from large hotels, restaurants, and food manufacturers like Haldiram’s. While collection from big businesses is manageable, gathering used oil from smaller users and households remains a challenge. IOC plans to engage aggregators to streamline collection and ensure a steady supply of raw materials.
Importance of SAF in Aviation Decarbonisation
SAF is a biofuel made from sustainable sources with chemical properties similar to conventional jet fuel. Aircraft engines can use SAF blends without modification. Airbus states its planes can operate on up to 50 per cent SAF blend. Aviation experts estimate SAF will contribute over 60 per cent of the sector’s carbon reduction efforts globally. The move supports international commitments to curb emissions.
Regulatory Framework and Future Targets
India’s National Biofuel Coordination Committee has set indicative SAF blending targets – 1 per cent in 2027 and 2 per cent in 2028 for international flights. Domestic flight mandates are expected after 2027. These targets align with the global CORSIA framework, which requires airlines to offset carbon emissions growth beyond 2020 levels from 2027 onwards. The government is cautious about earlier mandates due to SAF’s higher costs and airline concerns.
Cost and Production Pathways
Currently, SAF costs roughly three times more than conventional jet fuel. IOC is exploring multiple production methods, including the alcohol-to-jet pathway using ethanol. Other Indian companies are developing SAF units based on various technologies. All must obtain certification before commercial operation. The higher cost remains a key barrier but is expected to decline with scale and innovation.
Global Market and Export Potential
Europe’s established SAF blending mandates make European airlines potential buyers of IOC’s SAF when flying into India. The global demand for SAF is projected to rise sharply in the coming years. IOC is actively exploring export opportunities to meet this growing market. The year 2027 is critical as CORSIA’s mandatory phase begins, increasing pressure on airlines worldwide to adopt SAF.
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