India’s SAF Production is poised to reach a major milestone as the country prepares to commence commercial-scale operations by December 2025. The Indian Oil Corporation (IOC), India’s largest fuel refiner and retailer, has received international certification for manufacturing sustainable aviation fuel (SAF) from used cooking oil at its Panipat refinery. This development marks a significant step toward reducing carbon emissions in the aviation sector and aligns with India’s broader environmental and energy transition goals.
Recent Developments in SAF Production
IOC has recently secured the ISCC CORSIA certification, a crucial requirement for commercial SAF production under the Carbon Offsetting and Reduction Scheme for International Aviation. This certification ensures that the fuel produced meets global sustainability standards.
The Panipat refinery is set to produce 35,000 tonnes of SAF annually using used cooking oil as the primary feedstock. This production capacity is in line with India’s target of achieving 1 per cent SAF blending for international flights by 2027. The successful certification and launch of production also create a benchmark for other Indian refiners to expand SAF manufacturing, accelerating the adoption of clean fuels across the aviation sector.
Feedstock Sourcing for SAF Production
Used cooking oil from large hotels, restaurants, and food manufacturers such as Haldiram’s serves as the primary feedstock for IOC’s SAF production. While sourcing from large-scale suppliers is relatively straightforward, collecting used oil from smaller restaurants and households presents logistical challenges.
To address this, IOC plans to collaborate with aggregators and collection networks to ensure a steady and reliable supply of feedstock. Streamlining this process will be critical for scaling production and maintaining consistency in SAF supply, especially as demand grows in domestic and international aviation markets.
Importance of SAF in Aviation Decarbonisation
SAF is a biofuel produced from sustainable sources with chemical properties similar to conventional jet fuel. Aircraft engines can operate on SAF blends without modification. Airbus has confirmed that its aircraft can fly using up to a 50 per cent SAF blend safely.
Experts estimate that SAF will account for over 60 per cent of carbon reduction in the global aviation sector in the coming decades. By supporting SAF production, India contributes to international climate commitments and demonstrates its commitment to environmentally responsible aviation growth.
Regulatory Framework and Future Targets
India’s National Biofuel Coordination Committee has outlined indicative SAF blending targets: 1 per cent in 2027 and 2 per cent in 2028 for international flights. Domestic blending mandates are expected to follow shortly after 2027.
These targets are designed to align with the CORSIA framework, which requires airlines to offset carbon emissions growth beyond 2020 levels starting in 2027. While SAF costs remain higher than conventional jet fuel, phased mandates allow the aviation sector to adapt gradually while encouraging refiners to scale production and bring costs down.
Cost and Production Pathways
Currently, SAF costs approximately three times more than conventional jet fuel, which remains a key barrier to rapid adoption. IOC is exploring multiple production pathways, including the alcohol-to-jet method using ethanol, to optimize cost efficiency.
Other Indian companies are developing SAF units using diverse technologies, each of which must obtain certification before commercial operations can begin. Economies of scale, technological advancements, and government support are expected to gradually reduce SAF costs over the next few years, making it more competitive with conventional aviation fuels.
Global Market and Export Potential of SAF Production
Europe’s established SAF blending mandates make European airlines potential customers for IOC’s SAF when flying to and from India. Global SAF demand is projected to increase sharply in the coming years, driven by regulatory pressures and corporate sustainability goals.
The year 2027 will be particularly critical, as CORSIA enters its mandatory phase, requiring airlines worldwide to adopt SAF to offset emissions growth. India’s early move into SAF production positions the country not only as a domestic leader but also as a potential exporter of sustainable aviation fuel to meet global market demand.
Conclusion
India’s Sustainable Aviation Fuel Production marks a transformative step for the country’s aviation and energy sectors. By leveraging used cooking oil and other sustainable feedstocks, India aims to reduce carbon emissions, meet international climate commitments, and establish itself as a global player in SAF technology.
The combination of regulatory support, technological innovation, and strategic feedstock sourcing positions India to lead the charge in aviation decarbonisation. As commercial production begins in December 2025, India is set to take a significant stride toward a cleaner, more sustainable future for aviation.
