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IOCL plans a Rs 1,000-cr green jet fuel plant

Wednesday, 03 May 2023
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Indian Oil Corporation (IOCL) is planning to build a Rs 1,000 crore (USD 122 million) sustainable aviation fuel (SAF) plant as a step towards decarbonisation goals.

The plant will be set up at Indian Oil’s Panipat refinery, and utilize alcohol-to-jet technology developed by LanzaJet, and is likely to be the nation’s first SAF facility, when constructed. The aviation fuel will be produced from ethanol manufactured from agricultural or industrial waste.

The facility will have a high capacity to produce 88,000 tonne of SAF annually as a higher output will help reap the economies of scale, and the oil major is looking to partner with other oil companies on the project.

An oil ministry panel has recommended an initial blending of one percent SAF into regular fuel from 2026, with a gradual ramp up in future. Post ruling, the supply agreements with airlines will be signed. Meanwhile, the airline companies are also vying for tax breaks from the government or a carbon credit arrangement to make it viable to use SAF to meet the cost of operations.

The International Civil Aviation Organization (ICAO) in 2022 adopted a target to cut emissions to net zero by 2050, and SAF as a clean fuel is being seen as a sureshot way to reduce emissions.

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