Indian Oil Corporation (IOCL) plans to temporarily shut its 3,00,000 barrels-per-day diesel desulphuriser unit at the Panipat refinery to upgrade the facility for the production of sustainable aviation fuel (SAF) from used cooking oil (UCO).

The upgrade, scheduled for late 2025 or early 2026, is expected to yield 30,000 metric tons per year of SAF, said Arvind Kumar, Head of Refineries at IOCL. Despite the shutdown, diesel output will remain unaffected due to backup hydrotreaters at the site. The initiative aligns with India’s goal of blending one percent SAF by 2027, increasing to two percent by 2028.

Indian Oil is also considering retrofitting other kerosene-producing units across its refineries to boost SAF output. In addition, the company will soon invite bids for a 70,000 tonne-per-year green hydrogen plant and a new SAF project.

IOCL has already awarded a contract to Larsen & Toubro (L&T) to build a 10,000 tonne-per-year green hydrogen facility at Panipat, where L&T will supply green hydrogen at Rs 397 per kg. These efforts are part of India's national strategy to ensure 50 percent of hydrogen demand is met through green hydrogen by 2030.