Panipat Powers Up: IOCL's Green Leap with SAF Production

Indian Oil Corporation (IOCL) will temporarily shut down its 300,000 barrels-per-day diesel desulphuriser unit at the Panipat refinery to upgrade the facility for sustainable aviation fuel (SAF) production using used cooking oil (UCO). The upgrade, planned for late 2025 or early 2026, is expected to produce 30,000 metric tonnes of SAF annually, according to Arvind Kumar, Head of Refineries at IOCL.

Despite the shutdown, diesel production will continue uninterrupted, supported by backup hydrotreaters at the site. The move supports India’s target of blending 1% SAF by 2027, increasing to 2% by 2028.

IOCL is also evaluating retrofits of kerosene-producing units at other refineries to expand SAF capacity. Additionally, the company plans to invite bids for a 70,000 tonnes-per-year green hydrogen plant and another SAF project.

At Panipat, IOCL has already awarded Larsen & Toubro (L&T) a contract to build a 10,000 tonnes-per-year green hydrogen facility, with hydrogen to be supplied at ₹397 per kg. These initiatives are part of India’s broader push to meet 50% of its hydrogen demand through green hydrogen by 2030.

News by Rahul Yelligetti.