Indian Oil Corporation (IOCL), the country’s largest refiner, will commence production of sustainable aviation fuel (SAF) in December at its Panipat refinery, Haryana.

The new unit will have an annual capacity of 35,000 tonne, sufficient to meet India’s entire SAF blending requirement for international airlines by 2027. The project uses used cooking oil (UCO) as feedstock, leveraging India’s existing UCO aggregation network. IOCL’s facility has secured ISCC CORSIA certification, making it the only certified SAF producer in India using UCO. The certification remains valid for a year.

India has adopted a phased SAF blending mandate—one percent in 2027 and two percent in 2028. While SAF costs nearly three times more than conventional aviation turbine fuel (ATF), Chairman Arvinder Singh Sahney noted airlines will comply due to regulatory obligations. IOCL will also explore export markets if domestic demand falls short.