Indian Oil Corporation’s Panipat refinery has produced its first batch of Sustainable Aviation Fuel (SAF) from ethanol, marking a key milestone in India’s clean energy transition. With government mandates and global demand for low-carbon fuels rising, India is positioned to emerge as a major SAF producer.
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In a milestone for India’s green energy ambitions, Indian Oil Corporation’s (IOC) Panipat refinery has become the first in the country to receive certification to produce Sustainable Aviation Fuel (SAF). This achievement marks a crucial step in decarbonising India’s aviation sector, which is under growing pressure to reduce emissions in line with global climate commitments. SAF, a cleaner alternative to conventional jet fuel, can significantly cut lifecycle carbon emissions and help airlines transition to greener operations.
The certification allows the Panipat refinery to begin producing SAF through processes that meet rigorous international sustainability standards. This move aligns with India’s broader strategy to promote biofuels, expand renewable energy use, and support the country’s pledge to achieve net-zero emissions by 2070.
The role of feedstock in SAF production
According to a Deloitte’s report, India’s estimated surplus of 230 million tonnes of agricultural residue will be a crucial resource for producing SAF. This surplus can be used as feedstock for second-generation ethanol production, a key input for the Alcohol-to-Jet (AtJ) technology pathway—one of the most promising routes for SAF manufacturing.
The AtJ process with first-generation ethanol, derived from sugar and grain, can provide an initial boost until the technology fully matures. In parallel, Municipal Solid Waste (MSW) and used cooking oil (UCO) are set to contribute to the overall potential, creating a diverse and resilient supply chain. Looking ahead, alternative feedstocks such as sweet sorghum, seaweed, and certain types of industrial waste could further strengthen India’s SAF potential as technologies advance.
India’s aviation industry is one of the fastest-growing in the world, making the decarbonisation of air travel both an environmental necessity and a strategic opportunity. SAF can reduce greenhouse gas emissions by up to 80% compared to conventional fossil-based jet fuel, depending on the feedstock and production process. For airlines, integrating SAF into operations can also improve compliance with emerging international emissions regulations, such as CORSIA (Carbon Offsetting and Reduction Scheme for International Aviation).
With the Panipat refinery’s SAF capability, India now joins a select group of countries with domestic SAF production infrastructure, potentially lowering dependence on costly imports and helping stabilise prices in the long term.
Policy push and industry outlook
The Indian government has been actively promoting the biofuels sector through initiatives like the National Bioenergy Mission and updated ethanol blending targets. Industry experts note that SAF adoption will require coordinated efforts across policy, technology, and market development. Incentives, infrastructure investments, and partnerships between refiners, airlines, and technology providers will be critical to scale up production and bring costs down.
Currently, SAF is more expensive than conventional jet fuel, but economies of scale, advances in feedstock processing, and supportive policy measures could make it increasingly competitive. With India’s abundant biomass resources and expanding refining capabilities, the country is well-placed to emerge as a regional hub for SAF production in Asia.
The Panipat refinery’s certification is expected to inspire similar upgrades across other refining facilities in India. Scaling up SAF production will not only support the aviation industry’s climate goals but also generate rural income through biomass collection and processing, reduce air pollution from stubble burning, and create high-skilled jobs in bioenergy technology.
The combination of agricultural residue, waste streams, and innovative feedstocks presents India with a unique advantage. Leveraging these resources efficiently could help the nation meet domestic demand and potentially export SAF to neighbouring markets in the future.
