Jetting Toward Sustainability: Indian Oil to Retrofit Panipat Refinery for Green Aviation Fuel

Indian Oil Corporation (IOC) is set to upgrade its Panipat diesel refinery to produce sustainable aviation fuel (SAF), marking a pivotal step in India’s clean energy transition. The overhaul will enable the facility to convert used cooking oil into SAF, aligning with national decarbonization goals and global aviation mandates.

Key Highlights From the Upgrade Plan

- IOC will temporarily shut its 300,000 barrels-per-day diesel desulphuriser unit for retrofitting, scheduled for late 2025 or early 2026  
- The revamped unit will produce 30,000 metric tons of SAF annually using used cooking oil as feedstock  
- Diesel output will remain unaffected due to backup hydrotreaters at the Panipat site  
- IOC also plans to upgrade kerosene-producing units at other refineries to expand SAF production  
- India targets 1 percent SAF blending in aviation fuel by 2027, doubling to 2 percent by 2028  

Green Hydrogen and Future Expansion

- IOC will invite bids for a 70,000 tons-per-year green hydrogen plant and additional SAF projects  
- Larsen & Toubro has already been awarded a contract to build a 10,000 tons-per-year green hydrogen facility at Panipat  
- The hydrogen will be sold to IOC at Rs 397 per kilogram, supporting the company’s goal to meet half its hydrogen demand through green sources by 2030  

Outlook

With this upgrade, Indian Oil is positioning Panipat as a hub for next-gen fuels, reinforcing its role in India’s energy diversification and aviation sustainability roadmap.

Sources: Economic Times, Financial Express, Business Standard, MSN India, Auto ET, Biltrax Media, Reuters India