India has implemented a phased SAF blending mandate, requiring 1% SAF in jet fuel for international flights by 2027, increasing to 2% by 2028. This initiative supports the country’s commitment to reducing carbon emissions in the aviation sector while promoting sustainable energy practices.
The cost of SAF is approximately three times higher than conventional aviation turbine fuel (ATF). However, Sahney noted: “Finding buyers will not be an issue, as airlines must comply with the blending mandate.” Should domestic demand fall short, Indian Oil plans to explore export opportunities for the surplus SAF produced at the Panipat facility.
The production unit utilizes used cooking oil (UCO) as its primary feedstock. “Arranging feedstock is not a challenge. There is ample collection of UCO in the country, most of which is currently exported,” Sahney stated. Indian Oil will leverage the existing UCO aggregation network, sourcing from large hotels, restaurant chains, and traditional snack manufacturers to ensure a steady supply.
The Panipat facility has secured ISCC CORSIA certification, a requirement for commercial SAF production. Indian Oil is currently the only company in India certified to produce SAF from used cooking oil, with the certification valid for one year. “This certification positions us as a leader in sustainable aviation fuel production,” Sahney said.
The initiative reflects Indian Oil’s commitment to advancing sustainable energy solutions and supporting India’s environmental goals. By utilizing domestically sourced UCO, the company aims to reduce reliance on exports while meeting the growing demand for eco-friendly aviation fuel. The Panipat unit is expected to play a key role in helping airlines meet mandatory blending targets, contributing to a greener aviation sector in India and potentially beyond.
