Why in News

• Indian Oil Corporation is set to begin commercial production of Sustainable Aviation Fuel at its Panipat refinery by December 2025

• This will be the first commercial plant in India to receive international certification to manufacture aviation biofuel from used cooking oil

About Sustainable Aviation Fuel

• Definition

  • Sustainable Aviation Fuel is a bio-based alternative to conventional jet fuel

• Feedstocks

  • Used cooking oil

  • Agricultural residues

  • Forestry waste

  • Non-edible crops

• Characteristics

  • It is a drop-in fuel, meaning it can be blended with existing jet fuel

  • Can be used in current aircraft engines without any modification

  • International aviation bodies certify blending limits, usually up to 50 percent, to ensure safety and performance

Benefits of Sustainable Aviation Fuel

• Compatibility

  • Can be blended with conventional Jet A fuel

  • Can be used in existing aircraft and fuel infrastructure

• Lower emissions

  • Compared to conventional jet fuel, it can reduce greenhouse gas emissions by up to 94 percent, depending on the feedstock and technology pathway

• Energy security

  • Reduces dependence on imported crude oil

• Economic opportunities

  • Creates new markets for farmers through non-edible crops and residues

  • Creates opportunities for waste collectors handling used cooking oil and biomass

• Export potential

  • With Europe enforcing blending mandates, European airlines are likely to be the first major buyers when they land in India

  • Indian Oil Corporation also plans to enter global export markets

Indian Oil Corporation’s First Commercial Plant

• Location

  • Panipat refinery in Haryana

• Production start

  • December 2025

• Capacity

  • 35,000 tonnes annually

• Certification

  • Certified under International Sustainability and Carbon Certification – Carbon Offsetting and Reduction Scheme for International Aviation (ISCC CORSIA)

• Significance

  • First Indian company to receive this certification

  • Airlines worldwide must offset emissions beyond 2020 levels from 2027 onwards

  • Using Sustainable Aviation Fuel will be a major compliance pathway

Feedstock – Used Cooking Oil

• Definition

  • Refers to edible oils and fats that have been used for frying, cooking, or food preparation

• Sources

  • Hotels

  • Restaurants

  • Food companies

  • Households

• Concerns

  • Improper disposal of used cooking oil can cause environmental and health hazards

  • Collection from large hotel chains is manageable

  • Collection from smaller eateries and households is still a challenge

India’s Sustainable Aviation Fuel Targets

• Initial production will help meet India’s 1 percent blending target for international flights by 2027

• National Biofuel Coordination Committee targets

  • 1 percent blending in 2027

  • 2 percent blending in 2028

• Domestic flights

  • Blending for domestic flights is expected later, after international targets are in place

Challenges Ahead

• Collection issues

  • Difficult to gather used cooking oil from smaller eateries and households

• High cost

  • Currently about three times more expensive than conventional jet fuel

• Feedstock availability

  • Requires a steady supply of cooking oil, residues, and waste

• Policy clarity

  • Earlier blending mandates were delayed due to high costs

  • Implementation now starts from 2027

Future Pathways

• Indian Oil Corporation is exploring alcohol-to-jet technology, which uses ethanol as feedstock

• Other Indian companies are researching alternative pathways

  • All require international certification before large-scale rollout