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Indian Oil takes flight towards green aviation with Panipat refinery upgrade

Petroleum  -  Jul 11,2025  - 

Indian Oil Corporation (IOCL) is set to upgrade its Panipat diesel refinery for the production of Sustainable Aviation Fuel (SAF). This ambitious project underscores the nation's push for cleaner energy solutions and aligns with its broader environmental objectives.

The transformation of the Panipat facility involves a strategic repurposing of its existing infrastructure. IOCL plans a temporary shutdown of its 300,000 barrels-per-day diesel desulphuriser unit, scheduled for late 2025 or early 2026. 

This unit will then be reconfigured to produce SAF, primarily utilising used cooking oil (UCO) as a sustainable feedstock.

Upon completion of the upgrade, the Panipat refinery is projected to produce approximately 30,000 metric tons of SAF annually. 

Crucially, the temporary cessation of the desulphuriser unit will not impact the refinery's overall diesel output, thanks to the presence of backup hydrotreaters on site, ensuring uninterrupted supply of conventional fuels.

This initiative is a direct response to India's burgeoning national targets for SAF blending in aviation fuel. 

The country has set an indicative target of a 1% SAF blend by 2027, with plans to escalate this to 2% by 2028. 

IOCL's proactive approach at Panipat positions it as a key player in achieving these crucial milestones, which are vital for reducing the carbon footprint of air travel.

Company : Indian Oil Corporation