Why in news?

Indian Oil Corporation (IOC), India’s largest refiner and fuel retailer, is set to begin commercial production of Sustainable Aviation Fuel (SAF) at its Panipat refinery by December 2025. The facility recently received international certification to manufacture biofuel from used cooking oil (UCO).

By year-end, IOC will achieve a production capacity of 35,000 tonnes of SAF annually, with raw material sourced from large hotel chains, restaurants, and food companies, which typically discard cooking oil after one-time use.

This development marks a significant step in India’s green aviation push, contributing to cleaner energy transition and reducing dependence on conventional jet fuel.

What’s in Today’s Article?

• About Sustainable Aviation Fuel (SAF)
• Benefits of Sustainable Aviation Fuel (SAF)
• IOC’s First Commercial SAF Plant
• Meeting India’s SAF Targets
• Challenges Ahead
• Future Pathways

About Sustainable Aviation Fuel (SAF)

• SAF is a bio-based alternative to conventional jet fuel, produced from renewable feedstocks such as used cooking oil, agricultural residues, forestry waste, and non-edible crops.
• SAF is a “drop-in fuel,” meaning it can be blended with existing jet fuel and used in current aircraft engines without modification.
• International aviation bodies certify blending limits (usually up to 50%) to ensure safety and performance.

Benefits of Sustainable Aviation Fuel (SAF)

• Engine and infrastructure compatibility - SAF blended with conventional Jet A can be used in existing aircraft and infrastructure.
• Fewer emissions - Compared with conventional jet fuel, 100% SAF has the potential to reduce greenhouse gas emissions by up to 94% depending on feedstock and technology pathway.
• More flexibility - SAF is a replacement for conventional jet fuel, allowing for multiple products from various feedstocks and production technologies.
• Energy Security – It reduces dependence on imported crude oil.
• Economic Opportunities – It Creates new markets for farmers (through non-edible crops and residues) and waste collectors (used cooking oil, biomass).
• Exports: With Europe already enforcing SAF blending mandates, European airlines are seen as the first major buyers of IOC’s SAF when they land in India. IOC also plans to tap into global export markets as demand rises.

IOC’s First Commercial SAF Plant

• IOC will begin commercial production of SAF at its Panipat refinery. The plant is certified under ISCC CORSIA standards.
  • IOC is the first Indian company to receive ISCC CORSIA certification, a requirement under the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA).
  • From 2027, airlines worldwide must offset emissions beyond 2020 levels, and using SAF blends will be a key compliance pathway.
• It will produce 35,000 tonnes of SAF annually using used cooking oil (UCO).
  • UCO refers to edible oils and fats that have been used for frying, cooking, or food preparation in both commercial and household settings.
  • It is essentially leftover oil from cooking processes.
  • While UCO can be a sustainable feedstock for biodiesel and other products, its improper disposal can lead to environmental and health issues.

Meeting India’s SAF Targets

• The initial production capacity will be sufficient to meet India’s 1% SAF blending target for international flights by 2027.
• The National Biofuel Coordination Committee (NBCC) has set indicative targets of 1% blending in 2027 and 2% in 2028.
• SAF blending for domestic flights is expected to follow, but only after international targets are in place.

Challenges Ahead

• Collection bottlenecks: While UCO collection from big hotel chains is easy, creating systems to collect oil from small eateries and households remains difficult.
• High cost: SAF is currently about three times more expensive than conventional jet fuel, raising concerns for airlines about higher operating costs.
• Feedstock Availability: Large-scale production requires a steady supply of sustainable feedstocks (used cooking oil, residues, waste).
• Policy roadmap: Although the government had earlier considered early SAF mandates, cost concerns have pushed implementation to 2027 onwards.

Future Pathways

• While IOC has started with the used cooking oil route, it is also working on alcohol-to-jet (ATJ) technology, which uses ethanol as feedstock.
• Other Indian companies are exploring similar SAF technologies, but all pathways require international certification before commercial rollout.