According to Reuters, Indian Oil Corp (IOC), the country’s largest refiner, plans to upgrade a diesel desulfurization unit at its Panipat refinery — which has a capacity of 300,000 barrels per day — to produce sustainable aviation fuel (SAF). The revamp is expected to take place either at the end of this year or early next year, with SAF production scheduled to begin in 2025.

The upgraded unit will process used cooking oil (UCO) and is expected to produce around 30,000 tons of SAF annually. This initiative aligns with India’s national target of blending 1% SAF into aviation fuel by 2027 and doubling that to 2% by 2028.

Importantly, the refinery’s diesel output will not be affected during the upgrade period, as Panipat has additional diesel hydroprocessing units to maintain normal operations.

In addition to the Panipat project, IOC is also considering upgrading kerosene-producing units at other refineries to expand SAF production. These efforts highlight India’s growing commitment to sustainable aviation and its broader energy transition goals.