India’s First Sustainable Aviation Fuel (SAF) Plant – Used Cooking Oil

In December 2025, the Indian Oil Corporation (IOC) will commence commercial production of Sustainable Aviation Fuel (SAF) at its Panipat refinery at Haryana. With used cooking oil as its feedstock, the plant is expected to yield a capacity of 35,000 tonne per annum, able to satisfy the initial 1% SAF blending on international flights mandate in India that will become effective in 2027. IOC is the first Indian firm to be certified with ISCC CORSIA SAF as it meets international decarbonisation standards in the aviation industry. Compared to conventional jet fuel, SAF can result in up to 80 percent of lower lifecycle carbon emissions and will require no engine upgrades in the current airplane engines. This great endeavor is not only positioning India in the international SAF roadmap but also minimizing the carbon footprint as well as energy security.

Context 

• In December 2025, the Indian Oil Corporation (IOC) will commence commercial production of Sustainable Aviation Fuel (SAF) at its Panipat refinery at Haryana.

Key Points

Overview

• India Green Aviation Push: Aviation generates a large amount of emissions; SAF is identified as one of the major decarbonisation avenues in India.

• Global Mandates: CORSIA imposes the obligations on global airlines to offset the excess emissions against the 2020 level after 2027.

• National Policy Framework: NBCC India has started to provide its indicative target regarding the SAF blending, which is 1 percent in 2027 and 2 percent in 2028 of international flights.

Production & Feedstock

• Panipat IOC refinery will be able to produce 35000 TPA SAF using used cooking oil.

• The cooking oil will be obtained through aggregators within the hotels, restaurants, and the food industry players such as Haldiram.

• Big challenge: Small vendor and household collection.

Certification & Compliance

• Heated furnace: IOC will be the first Indian company to be ISCC CORSIA certified and will then be able to produce commercially.

• Exports are increased and certification ensures that we meet the worldwide aviation emission offsets schemes.

Compatibility of the Blending & Engine

• At the chemical level, SAF has a very favorable mixability with Aviation Turbine Fuel (ATF).

• Airbus asserts that all its planes could fly with a blend of 50 percent SAF.

• Indian airlines have already made test flights by using SAF mixture.

Policy & Targets

• INDIA to commence blending 1% SAF in 2027 and 2% (on international flights only) in 2028.

• Future domestic-blending requirement is anticipated, following cost and supply chain stabilisation.

• Cost challenge: The SAF is costlier than the conventional ATF (3 times).

Global Relevance

• Europe is not new to SAF blending requirements; European carriers may be the first customers of IOC to SAF in India.

• India expects to emerge as one of the exporters in the international SAF industry.

• SAF was also anticipated to provide more than the 60 percent contribution to global efforts of decarbonisation in the aviation industry.

Conclusion 

This is a turning point in the aviation decarbonisation of India through the SAF project in Panipat. It not only fortifies the energy independence of India but it also suits the international carbon reduction obligations of CORSIA. Yet, barriers such as scalability, cost competitiveness, and efficient feedstock collection are the major areas of concern when it comes to broader use.