India’s Sustainable Aviation Fuel Ambitions: Tackling the Used Cooking Oil Bottleneck

India is moving to solidify its domestic supply chain for Used Cooking Oil (UCO) to fuel the burgeoning Sustainable Aviation Fuel (SAF) industry. As the nation prepares to meet ambitious decarbonization goals, the focus has shifted toward building a robust ecosystem for collection, traceability, and certification. Discussions at the India SAF Conclave & Awards 2026 highlighted these priorities, with industry players like M11 Energy Transition emphasizing that the success of SAF hinges on the integrity of the feedstock market.

Strengthening the Traceability Framework

The Food Safety and Standards Authority of India (FSSAI) has already laid the groundwork for this transition through the “Repurpose Used Cooking Oil” (RUCO) initiative. This digital platform is designed to streamline the lifecycle of UCO by mapping collection requests, aggregators, and the movement of oil to non-food production units.

However, the existence of this digital framework does not automatically guarantee widespread adoption or the high-fidelity data required for international aviation certification. Critics and industry observers argue that bridging the gap between a documentation tool and a certified, audit-ready supply chain is the primary challenge. For Indian SAF to be recognized on the global stage, the system must evolve beyond simple reporting to ensure that every liter of oil collected can meet rigorous international sustainability criteria.

Industrial Interests and the Paradip Project

The urgency surrounding this feedstock debate is partly driven by significant industrial investments. Indian Oil Corporation Limited (IndianOil) has moved forward with plans to establish a SAF production facility in Paradip using the Hydroprocessed Esters and Fatty Acids (HEFA) pathway.

For companies like M11 Energy Transition, which has demonstrated a keen interest in these developments, the challenge is clear: turning indicative government SAF blending targets for international flights into a reliable, consistent feedstock demand. While Indian regulatory frameworks are evolving, the transition from voluntary targets to mandatory purchase obligations remains a critical step for project developers looking to secure long-term financial viability.

Navigating Certification and Economic Realities

Certification remains the cornerstone of the SAF sector, requiring more than just a collection log. Adherence to standards like ISCC CORSIA is essential for ensuring that lifecycle emissions are accurately measured and accounted for. This process requires a strict chain of custody, whether through physical segregation or mass balance accounting.

Furthermore, the industry is grappling with the complexities of price indexation. While international benchmarks are often cited in contractual discussions, they do not necessarily reflect the localized realities of the Indian UCO market, such as logistics, quality variations, and the specific certification premiums involved. Stakeholders emphasize that commercial pricing must be decoupled from environmental eligibility, as certification is a technical and regulatory requirement for ICAO compliance, not merely a function of market fluctuations.

Ultimately, as India positions itself as a potential global hub for SAF production, the integration of lifecycle emission methodologies and transparent financing will be paramount. By refining the RUCO platform and aligning it with international audit standards, India aims to transform a fragmented UCO collection sector into a sophisticated, high-value asset for its national aviation sector.

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