Air India and Indian Oil sign MoU for Sustainable Aviation Fuel supply

Air India and Indian Oil Corporation Limited (IOCL) have signed a Memorandum of Understanding (MoU) for the supply of Sustainable Aviation Fuel (SAF), marking a significant step towards a greener future for Indian aviation. Under the MoU, Air India, a Tata Group company, and IOCL have outlined their shared commitment to promote the adoption of low-carbon fuels in aviation, support global decarbonisation goals, and contribute to the transition towards more sustainable air transport operations.

As part of its broader strategy to achieve the IATA Net Zero by 2050 target and comply with CORSIA obligations, Air India is actively pursuing initiatives in operational efficiency, low-carbon emissions, and now SAF. This MoU marks a major expansion of its green aviation portfolio.

The MoU was signed by Shailesh Dhar, Executive Director (Aviation), IndianOil, and P Balaji, Group Head – GRC and Corporate Affairs, Air India, in the presence of AS Sahney, Chairman, IndianOil, and Campbell Wilson, CEO & Managing Director, Air India, along with other officials.

AS Sahney, Chairman, IndianOil, said, “The signing of this MoU with AirIndia represents a strategic step in India’s transition to sustainableaviation. With our ISCC-CORSIA-certified SAF from Panipat, IndianOil is ready to provide a sustainablefuel solution that will help decarbonise air travel. Partnering with India’s flagship carrier, we are aligning national growth with global climate goals and setting a benchmark for the industry.”

Campbell Wilson, CEO & Managing Director, AirIndia,said, “Through this MoU with IndianOil, AirIndia is committed to support the Government ofIndia’s initiatives to promote sustainable development in the aviation sector and to further its own sustainability goals to achieve the IATA Net Zero by 2050 target.”

Air India’s fleet renewal plan, with 570 new aircraft on order, will enable the airline to operate one of the lowest carbon-emitting fleets in the world, and its plans to establish more non-stop city pairs will result in less emissive flights and itineraries. Air India has also adopted market-leading flight planning and optimisation systems, including upgrading its route-planning software and coordinating with air traffic management, and has entered into a MoU with India’s Council of Scientific and Industrial Research and the Indian Institute of Petroleum to collaborate on the research, development and deployment of SAF.

In recent years, Air India has introduced several green practices, including reducing single-use plastics, using lighter materials for cutlery and crockery, and optimising processes such as more frequent engine and airframe washes, single-engine taxiing, and autonomous electric towing to save jet fuel.

These efforts align with India’s broader push for green aviation, including the target of five per cent SAF blending by 2030 and the development of SAF supply chains across the country.

This collaboration builds on IOCL’s milestone as the first Indian company to receive ISCC CORSIA certification for SAF production at its Panipat Refinery. The certification, granted under ICAO’s Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA), confirms IOCL’s capability to produce SAF to meet stringent international sustainability and lifecycle carbon emission standards.

By integrating certified green fuels into commercial operations, IndianOil and Air India reinforce India’s position as a leader in sustainable aviation and the energy transition.

Through this MoU, IOCL and Air India aim to collaborate on the supply of SAF to meet CORSIA targets for international flights, ensuring a reliable, transparent, and sustainable fuel supply to support both organisations’ environmental goals.