Indian Oil's Panipat Refinery: Upgrading for Sustainable Aviation Fuel Production
Key Ideas
  • Indian Oil Corp to temporarily shut down its diesel desulphuriser unit at Panipat refinery for an upgrade to produce 30,000 metric tons of sustainable aviation fuel from used cooking oil.
  • The overhaul aims to contribute to India's goal of having 1% sustainable aviation fuel in aviation fuel by 2027, doubling to 2% in 2028.
  • Indian Oil will also invite bids for a green hydrogen plant and a sustainable aviation fuel project, in line with India's target to meet half of their hydrogen demand through green hydrogen by 2030.
Indian Oil Corp has announced plans to upgrade its Panipat refinery in India for the production of sustainable aviation fuel (SAF). The company intends to temporarily shut down its diesel desulphuriser unit to facilitate the upgrade, which will allow for the conversion of used cooking oil (UCO) into 30,000 metric tons of SAF annually. This initiative aligns with India's ambition to incorporate 1% SAF in aviation fuel by 2027, with a subsequent increase to 2% by 2028. The refinery's diesel output will not be affected during the shutdown as additional diesel hydrotreaters are available at the site. Indian Oil is also exploring the enhancement of kerosene-producing units in other refineries to enable SAF production. Furthermore, the company is set to commence the bidding process for a 70,000 tons-per-year green hydrogen plant and a sustainable aviation fuel project. Notably, Indian Oil has awarded a bid for the construction of a 10,000 tons-per-year green hydrogen facility at the Panipat refinery to Larsen and Toubro. The agreement entails Larsen and Toubro building and operating the plant, with green hydrogen to be supplied to Indian Oil at a price of 397 Indian rupees ($4.64) per kilogram. Overall, these initiatives signify Indian Oil's commitment to sustainable practices and align with India's broader objectives for energy transition and reducing carbon emissions. By investing in green technologies like green hydrogen and sustainable aviation fuel, Indian Oil is poised to play a significant role in India's journey towards a more environmentally friendly and sustainable energy ecosystem.
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