Indian Oil Corporation's Sustainable Aviation Fuel (SAF) Production

Indian Oil Corporation (IOC), the country's largest refiner and fuel retailer, is set to commence commercial production of Sustainable Aviation Fuel (SAF) at its Panipat refinery by December. This follows the recent international certification for producing biofuel from used cooking oil.

Certification and Compliance

• IOC is the first in India to receive the ISCC CORSIA certification for SAF production.
• This certification is essential for compliance with the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA).

SAF Characteristics and Industry Adoption

• SAF is a biofuel with chemistry similar to conventional aviation turbine fuel, allowing its use in existing aircraft engines. Airbus claims compatibility with up to 50% SAF blends.
• SAF is expected to contribute significantly to global aviation decarbonization efforts.
• Indian airlines have conducted successful test flights using SAF blends.

Market and Future Prospects

• With SAF blending mandates, European airlines are potential buyers of IOC's SAF.
• IOC is exploring export opportunities due to expected global SAF demand growth.

Regulatory Framework and Targets

• CORSIA mandates airlines to offset emissions beyond 2020 levels starting in 2027.
• India's National Biofuel Coordination Committee has set initial SAF blending targets: 1% in 2027 and 2% in 2028 for international flights.

Economic Considerations

• SAF production cost is approximately three times higher than regular jet fuel.
• IOC is exploring additional SAF production pathways, including the alcohol-to-jet method using ethanol.