fbpx

BPCL Plans to Invest ₹1,400 Crore in Green Aviation Fuel Units

Bharat Petroleum Corp (BPCL), a state-run company, is planning to invest up to ₹1,400 crore in setting up sustainable aviation fuel (SAF) units at its three refineries. This move aims to support the government’s 1% blending target for aviation fuel.

What is SAF?

SAF stands for Sustainable Aviation Fuel, which is made from waste materials like agricultural waste, fats, used cooking oil, or non-food crops.

BPCL’s Refineries:

BPCL operates three refineries located in Mumbai, Kochi, and Bina (Madhya Pradesh), with a combined refining capacity of 35.3 million metric tonnes per annum (mmtpa).

Current Plans:

BPCL is currently evaluating different technologies, feedstock availability, and market demand to decide the best location for its SAF production facility. The final location will be determined based on these assessments. The company aims to set up an SAF production facility capable of meeting a 5% blending target by 2030, with an interim goal of achieving 1% blending by 2027, producing around 100 tonnes of SAF per day.

Other Initiatives:

Last year, Indian Oil Corp (IOC) signed an agreement with LanzaJet to use their alcohol-to-jet (ATJ) technology for large-scale SAF production in India. IOC plans to start the country’s first commercial SAF plant in Panipat by 2026. Mangalore Refineries and Petrochemicals is also setting up a smaller SAF plant using a technology developed by the CSIR-Indian Institute of Petroleum.

Adoption of Technologies:

BPCL aims to use indigenous technologies as much as possible. They are considering three main technology pathways:

  1. Co-processing oil to jet fuel in existing facilities
  2. Creating new greenfield oil-to-jet facilities
  3. Building new alcohol-to-jet facilities

The choice of technology will depend on sustainability, logistical feasibility, and economic viability. While BPCL is exploring domestic technologies, they are also in talks with international players to meet the blending mandate on time.

BPCL’s focus is on using the most effective technologies that provide maximum carbon life-cycle benefits and promote environmental protection within a circular economy framework.

Disclaimer: The views and investment tips expressed by investment experts on Sharepriceindia.com are their own and not those of the website or its management. Sharepriceindia.com advises users to check with certified experts before taking any investment decisions.​​

We will be happy to hear your thoughts

      Leave a reply

      Share Price India News
      Logo