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Inside Bengaluru's Underground Economy Turning Used Cooking Oil Into Jet Fuel

How an army of grease hunters in Bengaluru is transforming restaurant waste into a vital national asset for sustainable aviation fuel.

Gaurav Sen
By Gaurav Sen
Senior Editorial Director & Lead Geopolitical Analyst
•3 min read•2 views
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A waste oil collector loading jerry cans onto a motorized auto-rickshaw in Bengaluru
A waste oil collector loads jerry cans onto a motorized vehicle in Bengaluru as India ramps up its biofuel supply chain.

The Hunt for Culinary Gold

In the subterranean basements and bustling alleyways of Bengaluru, an unconventional supply chain is quietly taking shape. Armed with motorized rickshaws and plastic jerry cans, workers known locally as "grease hunters" scour the city's commercial kitchens, collecting used cooking oil that restaurants no longer need. To the untrained nose, the cargo carries the lingering aroma of fried foods; to India's burgeoning biofuel sector, it represents a lucrative stream of renewable energy.

This grassroots collection effort is no longer just a local novelty. It sits at the foundation of a sweeping national push by India's state-backed oil marketing giants—Indian Oil Corp., Hindustan Petroleum Corp., and Bharat Petroleum Corp.—to secure tens of thousands of tons of waste food oil. The objective is clear: convert low-value kitchen waste into high-grade sustainable aviation fuel (SAF) and biodiesel to power the country's transport networks.

Pressures from Global Supply and Geopolitics

India's aggressive pivot toward waste-derived biofuels is driven by severe economic vulnerabilities. As an economy that imports approximately 90% of its crude oil, the nation spent a staggering $125 billion on petroleum imports over the past year, severely straining foreign exchange reserves.

Geopolitical shocks have only accelerated this transition. Disruptions in vital maritime choke points, such as the Strait of Hormuz, sent global oil prices surging and triggered alarms within government and corporate circles alike.

"Hormuz triggered the alarm," noted Sanjay Sah, Deloitte South Asia's lead for energy and resources, highlighting how rapidly policymakers have had to move to secure domestic energy alternatives. Prime Minister Narendra Modi's administration has aggressively championed energy derived from urban, industrial, and agricultural waste to mitigate import dependency.

Scaling Up a Fragmented Market

Despite the massive potential, aggregating waste cooking oil remains an uphill battle across India's fragmented culinary landscape. The supply chain relies on thousands of scattered eateries, making industrial-scale collection a logistical labyrinth.

Even so, licensed operators are scaling up rapidly. Mannan Khan, chief executive officer of M11 Energy Transition Pvt.—one of roughly a dozen licensed aggregators in the country—recalls starting with a single collector in 2022. Today, his enterprise deploys 300 collectors across 24 cities, pulling in roughly 1,000 tons of used oil every month.

"The market is way, way bigger than all of us can provide for," Khan said.

A Global Race for Sustainable Skies

India's initiative mirrors a broader Asian movement toward green aviation. Nations across the region, including Singapore and South Korea, are rolling out mandatory blending requirements. Meanwhile, collection networks are expanding swiftly in Malaysia, Vietnam, and Indonesia, while China remains a dominant global exporter of used cooking oil to Western markets.

Regulatory deadlines are fast approaching. Beginning in January, international flights departing from India will be required to utilize fuel containing at least 1% sustainable aviation fuel. That mandate is scheduled to scale up to 5% by 2030, running parallel to a 5% biodiesel target for road transport.

Global demand for SAF is projected to skyrocket by 600% over the next decade, reaching 14 million tons annually by 2035, according to Argus Biofuels Analytics. However, tight global supplies continue to constrain adoption; the International Air Transport Association reports that SAF accounted for a mere 0.6% of total jet fuel consumption last year.

As regulatory pressures mount and airlines search for credible paths to decarbonization, the sticky tubs of used oil collected from Bengaluru's restaurant basements are proving to be a surprisingly crucial link in the global aviation supply chain.

Gaurav Sen

About Gaurav Sen

Senior Editorial Director & Lead Geopolitical Analyst

Senior Editorial Director and investigative correspondent covering national affairs, international relations, defense, and economic policy for Daily News 365.

@gauravsen_newsgaurav.sen@globalnews365.com