Indian Oil Corporation Ltd (IOCL) will temporarily shut down its 300,000 barrels-per-day diesel desulphuriser at the Panipat refinery to upgrade the facility for sustainable aviation fuel (SAF) production from used cooking oil (UCO).

The upgrade is expected to begin in late 2025 or early 2026, with the unit projected to generate 30,000 metric tonnes of SAF annually, according to Arvind Kumar, Head of Refineries at IOCL. Diesel production will remain unaffected during the upgrade, thanks to alternative hydrotreaters operating at the site.

This move supports India’s aim to blend one per cent SAF by 2027, increasing to two per cent by 2028, aligning with national decarbonisation goals in the aviation sector.

IOCL is also exploring similar retrofits across its kerosene-producing units to expand SAF production further.

In parallel, IOCL will soon invite bids for a 70,000-tonne-per-year green hydrogen project, along with a separate SAF initiative. It has already awarded Larsen & Toubro (L&T) a contract to construct a 10,000-tonne-per-year green hydrogen plant at Panipat, which will supply hydrogen at Rs 397 per kg.

These initiatives reinforce IOCL’s commitment to India’s green hydrogen vision, targeting 50 per cent hydrogen demand from clean sources by 2030, and signal a broader transition towards low-carbon, sustainable energy infrastructure.