India’s IOC targets early adoption of SAF
Indian Oil Corporation (IOC), the country’s largest refiner, has announced plans to accelerate the adoption of sustainable aviation fuel (SAF). The company aims to achieve at least 1% SAF blending in jet fuel by July-September 2025, surpassing the government’s target of 2027.
IOC’s director of research and development, Alok Sharma, revealed these plans at the India Refining Summit on October 23. The IOC intends to establish dedicated SAF production facilities to meet the growing demand for sustainable fuels.
India’s government has set a goal of 1% SAF in jet fuel for international flights by 2027, with this percentage doubling to 2% by 2028. To achieve these targets, the country will require approximately 140m liters of SAF annually.
Sharma also highlighted the IOC is focused on expanding jet fuel production capacity to meet rising demand. While demand for other refined products is expected to plateau, the consumption of jet fuel is anticipated to increase significantly.
In line with global trends, the International Energy Agency (IEA) forecasts a decline in global oil demand, excluding biofuels, to 93.1m barrels per day by 2050. This is attributed to lower-than-expected oil use in transportation, particularly shipping.
Ethanol is poised to play a crucial role in India’s energy mix. The government is actively considering blending 5% ethanol in diesel, and the country is on track to achieve its target of 20% ethanol blending in gasoline by 2025.
To reduce its dependence on crude oil imports, India has implemented policies to promote ethanol production. Ethanol blending in gasoline reached 13.8% during November 2023-September 2024 and further increased to 15.9% in September 2024.
State-owned Indian Oil Corporation is already developing a SAF project in India with an investment of $38m