State-run Bharat Petroleum Corp (BPCL) is planning to establish sustainable aviation fuel (SAF) units at its three refineries, according to industry officials knowledgeable about the development. This initiative aims to support the government's 1% blending target. The company will invest up to Rs 14 billion to set up these facilities.

SAF is a type of aviation fuel derived from waste, produced from various sources such as agricultural waste, fats, used cooking oil, or non-food crops.

BPCL operates 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 stated in an emailed response that the company is actively assessing multiple technologies, evaluating feedstock availability, and analysing market demand to finalise the location for its upcoming sustainable aviation fuel production facility. The refinery location for the SAF plant will be determined based on the assessment outcome. BPCL further mentioned that the company aims to set up an SAF production facility capable of meeting a 5 per cent blending requirement as per the Government of India's notification by 2030. Depending on the maturity of technology and other logistical considerations, further plans will be developed. By 2027, BPCL proposes to meet a 1% SAF blending requirement for the international sector with SAF production of around 100 tonne per day.

Last year, the 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 using CSIR-Indian Institute of Petroleum's single-step process that converts used cooking oil or palm waste to produce SAF.