BPCL Plans First Sustainable Aviation Fuel Plant by 2027

State-owned Bharat Petroleum Corporation Limited (BPCL) is planning to roll out its first sustainable aviation fuel (SAF) facility by 2027. This aligns with the government’s anticipated SAF blending mandate, according to someone familiar with the matter.

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Right now, BPCL is evaluating different production methods for SAF, such as oil-to-jet and ethanol-to-jet processes. “It’s early days, and we’re still exploring which technology will be the best fit for production,” the source shared.

The SAF facility is likely to be set up at one of BPCL’s existing refinery locations—either in Kochi or Mumbai. However, the production capacity and investment details are still up in the air.

So, what is SAF? Also called bio-jet fuel, it’s a greener alternative to conventional jet fuel, made from renewable sources like ethanol. When blended, it can cut greenhouse gas emissions by up to 80% compared to traditional aviation turbine fuel (ATF).

While India doesn’t have formal SAF blending targets just yet, the government is expected to require domestic airlines to blend at least 1% SAF with ATF by 2027. This would mean producing around 140 million liters of SAF annually—no small feat.

The move fits into India’s larger push to hit net-zero carbon emissions by 2070. Since aviation is responsible for about 12% of global transportation-related CO₂ emissions, adopting SAF is a major step toward a greener future.

There’s also an economic angle. Farmers who grow sugarcane (used in ethanol-based SAF) could see higher incomes, with the blending mandate projected to benefit over 500,000 farmers. Plus, the initiative could generate over 100,000 green jobs, according to government estimates.

This ties in with India’s broader ethanol goals, such as achieving 20% ethanol blending with petrol by 2025.

BPCL, which already runs refineries in Mumbai, Kochi, and Bina (Madhya Pradesh), is also building a new refinery to meet the country’s growing energy needs. Chairman and Managing Director G. Krishnakumar recently announced plans to invest ₹1.7 lakh crore over the next five years in core refining, fuel marketing, petrochemicals, and clean energy.

Here’s a breakdown of that investment:

• ₹75,000 crore for refineries and petrochemicals,
• ₹8,000 crore for pipelines,
• ₹20,000 crore for fuel marketing,
• ₹25,000 crore for the gas business,
• ₹10,000 crore for green energy,
• ₹32,000 crore for upstream production, focusing on assets in Mozambique and Brazil.

It’s clear BPCL is gearing up for big changes, both to meet energy demand and to take a leading role in a more sustainable future.