IOC to fast track sustainable aviation fuel production

The first batch of sustainable aviation fuel (SAF) could be available before next March with Indian Oil Corporation (IOCL) implementing a co-processing method for its production.

While IOC has tied up with LanzaJet to produce SAF using alcohol-to-jet technology, State oil marketing company is Parallelly working on more cost effective co-processing method to fast track the availability of SAF before introduction of government mandate.

The government has set an indicative blending target of one per cent of SAF in conventional jet fuel for international flights from 2027.

Co-processing plant

“Co-processing involves lower capex compared to a new standalone plant as it utilises an existing facility,” said an industry executive. “It is expected that SAF from the co-processing plant in Panipat will be available within a year and significantly earlier than one produced using ATJ method,” he added.

SAF refers to waste-derived aviation fuel. It is produced from various sources such as used cooking oil, agricultural waste , fats or non-food crops. SAF which is referred to as biofuel can reduce carbon dioxide emissions by upto 80 per cent depending upon the feedstock used and production method.

As of now there are 11 globally approved pathways for production of SAF. While both ATJ and co-processing methods are recognised, LanzaJet’s own plant in the US is set to commence production from this year.

“The ATJ project with LanzaJet is currently in the design engineering stage. Subject to successful due diligence, IOC will initiate the investment approval process,” he said.

Used cooking oil

It is learnt IOC will rely on used cooking oil as a feedstock for producing SAF with co-processing method.

IOC did not respond to an email query on the topic.

Along with IOC, other State oil marketing companies too are working on manufacture of SAF. Mangalore Refinery and Petrochemicals Ltd is relying on CSIR-Indian Institute of Petroleum’s single step process that uses used cooking oil or palm waste to produce SAF. Last December it invited expression of interest from companies to partner for its SAF production plant.

According to a November 2024 media report, Bharat Petroleum Corporation Ltd is planning to set up a SAF production plant by 2027. The company is finalising locations for the facility which could come up at its Mumbai or Kochi refineries. Last month, Hindustan Petroleum Corporation Ltd announced a tie up with Boeing to advance SAF ecosystem in India. HPCL’s R&D centre has also patented its proprietary Trijet technology for converting used cooking oil into SAF.

Last week, Minister of State for Civil Aviation Murlidhar Mohol informed Rajya Sabha that public sector oil companies are engaged in setting up pilot/commercial scale facilities to produce SAF.

At present there are various challenges like high capex, fragmented supply chains, absence of tax benefits and subsidies for SAF production. However the plants are expected to catalyse the development of an ecosystem for domestic SAF production, Mohol said. These would also set benchmarks for development and indigenisation of technologies used for commercial projects.