Indian Oil Corporation's Panipat Refinery to Produce Sustainable Aviation Fuel
Key Ideas
  • IOCL to temporarily shut diesel desulphuriser unit to produce sustainable aviation fuel from used cooking oil.
  • Upgrade expected to yield 30,000 metric tons per year of SAF aligning with India's SAF blending goals.
  • Indian Oil plans to retrofit kerosene-producing units for increased SAF production and invest in green hydrogen plants.
  • Larsen & Toubro awarded contract to build a 10,000 tonne-per-year green hydrogen facility at Panipat refinery.
Indian Oil Corporation (IOCL) is planning to upgrade its Panipat refinery in India to produce sustainable aviation fuel (SAF) from used cooking oil. The company will temporarily shut its diesel desulphuriser unit for this transformation, expected to be completed by late 2025 or early 2026. The upgrade aims to yield 30,000 metric tons per year of SAF in alignment with India's target to blend one percent SAF by 2027, increasing to two percent by 2028. Additionally, IOCL is considering modifying other kerosene-producing units in its refineries to boost SAF production. The company also plans to invite bids for a 70,000 tonne-per-year green hydrogen plant and a new SAF project. IOCL has already contracted Larsen & Toubro (L&T) to construct a 10,000 tonne-per-year green hydrogen facility at the Panipat refinery, with L&T supplying green hydrogen at Rs 397 per kg. These initiatives are part of India's strategy to meet 50 percent of its hydrogen demand through green hydrogen by 2030.
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