India is funneling more of its leftover frying oil into fuel tanks, driven by an urgent need to cut its massive crude import bill. Prime Minister Narendra Modi's government is promoting energy made from urban, industrial and agricultural waste to help meet growing demand and reduce reliance on overseas supplies. International flights leaving India must now use a 1% blend of sustainable aviation fuel starting in January, rising to 5% by 2030, alongside a similar biodiesel target for road transport.
Used cooking oil is the cheapest feedstock for this fuel, but only a fraction of what is produced is collected. That has sparked a rush by companies like M11 Energy Transition Pvt. to ramp up volumes across a fragmented supply chain. In the megacity of Bengaluru, auto rickshaws gather used cooking oil from restaurant kitchens, which is recorded in an app and collected at a local M11 depot receiving about 4 tons a day.
Bigger players are taking notice. State oil majors Hindustan Petroleum Corp. and Bharat Petroleum Corp. sought a combined 83,000 tons of used cooking oil in tenders closing this month, according to government documents. The move is part of a broader Asian push into biofuels, with Singapore and South Korea planning sustainable aviation fuel requirements from 2027, and collection networks expanding in Malaysia, Vietnam and Indonesia.
M11 plans to double its depots to 50 by year-end, adding households, food manufacturers and industrial kitchens to its collection routes. With crude prices kept high by war in the Middle East, the need to find more fuel at home will only become more pressing.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing