BPCL to Invest Rs 1,400 Crore in Sustainable Aviation Fuel Units
06.18.2024 By Tank Terminals - NEWS

June 18, 2024 [The Machine Maker]- Bharat Petroleum Corporation Limited (BPCL), a state-run enterprise, is set to invest up to ₹1,400 crore in establishing sustainable aviation fuel (SAF) units across its three refineries. This initiative aligns with the Indian government’s goal of achieving a 1% blending target for SAF, aiding in the broader push for greener aviation fuels.

 

SAF, derived from waste materials such as agricultural waste, fats, used cooking oil, and non-food crops, represents a significant step towards reducing carbon emissions in aviation. BPCL operates three refineries located in Mumbai, Kochi, and Bina, 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 analyzing market demand to finalize the location for its upcoming sustainable aviation fuel production facility. Based on the assessment outcome, the refinery location for the SAF plant would be finalized,” the company stated in an emailed response.

BPCL aims to establish an SAF production facility capable of meeting a 5% blending target by 2030, as per the Government of India’s notification. The company plans to achieve a 1% SAF blending for the international sector by 2027, producing approximately 100 tonnes of SAF per day.

In the pursuit of SAF production, BPCL joins other state-run entities like Indian Oil Corporation (IOC) and Mangalore Refineries and Petrochemicals (MRPL). Last year, IOC signed a memorandum of understanding with LanzaJet to pursue large-capacity SAF production in India using LanzaJet’s alcohol-to-jet (ATJ) technology. IOC aims to start the country’s first commercial-scale SAF plant at Panipat by 2026. Similarly, MRPL is setting up a 20-kilolitre-per-day SAF plant using CSIR-Indian Institute of Petroleum’s single-step process to convert used cooking oil or palm waste into SAF.

BPCL plans to maximize the use of indigenous technologies where feasible. The company is evaluating three major technology pathways: oil-to-jet co-processing in an existing facility, oil-to-jet greenfield facility, and alcohol-to-jet new facility. The selection will be based on comprehensive assessments of sustainability, logistical feasibility, and economic viability. BPCL is committed to adopting technologies that maximize carbon life-cycle benefits and promote environmental protection within the circular economy framework.

“While we recognize 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 noted.

This move underscores BPCL’s commitment to supporting India’s energy transition and sustainability goals, ensuring the nation stays on course to meet its carbon reduction commitments while bolstering domestic technological capabilities in the process.

 

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