State-run Bharat Petroleum Corp (BPCL) is planning to set up sustainable aviation fuel (SAF) units at its three refineries, according to industry officials aware of the development. This plan will help support the government’s 1% blending target. The company will invest up to Rs 1,400 crore in setting up these facilities.
SAF refers to aviation fuel derived from waste. It is produced from various sources such as agricultural waste, fats, used cooking oil, or non-food crops.
BPCL runs three refineries in Mumbai, Kochi, and Bina (Madhya Pradesh) with a combined annual refining capacity of 35.3 million metric tonnes per annum (mmtpa).
“BPCL is actively assessing multiple technologies, evaluating feedstock availability, and analysing market demand to finalise the location for its upcoming sustainable aviation fuel production facility. Based on the assessment outcome, the refinery location for the SAF plant would be finalised,” BPCL said in an emailed response.
BPCL said the company will be looking to set up an SAF production facility that is capable of meeting 5% blending as per GoI notification by 2030. Based on the maturity of technology and other logistics consideration, it will chalk out further plans. “By 2027, we propose to be in a position to meet 1% SAF blending for the international sector with SAF production of around 100 tonnes per day.
Last year country’s largest refiner Indian Oil Corp (IOC) signed a memorandum of understanding with LanzaJet to pursue large-capacity SAF production in India using LanzaJet’s leading and proven alcohol-to-jet (ATJ) technology.
IOC plans to start the country’s first commercial-scale SAF plant at Panipat by 2026. State-run Mangalore Refineries and Petrochemicals is also setting up a 20-kilolitre-per-day SAF plant. It is using CSIR-Indian Institute of Petroleum’s single-step process that converts used cooking oil or palm waste to produce SAF.
BPCL plans to maximise the adoption of indigenous technologies wherever feasible, the company said. “BPCL is evaluating all the three major technology pathways – oil to jet co-processing in an existing facility, oil to jet green field facility, and alcohol to jet new facility. The selection will be based on comprehensive assessments of sustainability, logistical feasibility, and economic viability. The company said it is focused on adopting the most effective technologies that maximise carbon life-cycle benefits, promoting environmental protection within the circular economy framework.
“While we recognise the presence of domestic technology that is still evolving, our initial evaluations indicate that mature technologies from international players are readily available to enable us to meet the blending mandate within the required time frame. Currently, we are engaged in discussions with multiple agencies across all three pathways,” BPCL said.
