Akasa Air And BPCL Sign Deal For Sustainable Aviation Fuel

Bharat Petroleum Corporation Limited (BPCL) and Akasa Air have signed a memorandum of understanding (MoU) to promote the adoption of sustainable aviation fuel (SAF) in India’s aviation sector. The partnership aims to improve the availability and supply of SAF at select airports while exploring long-term readiness for production, distribution and increased usage of the alternative aviation fuel.

Under the agreement, BPCL and Akasa Air will work together to develop a roadmap for SAF adoption and examine the possibility of gradually increasing SAF blending in aviation turbine fuel (ATF). The move comes as India looks to reduce dependence on imported crude oil and support cleaner fuel alternatives for the rapidly expanding aviation industry.

The government has recently taken steps to enable the use of SAF-blended aviation fuel in the country. The Ministry of Petroleum and Natural Gas amended the Aviation Turbine Fuel (Regulation of Marketing) Order, 2001, allowing the blending of sustainable components in jet fuel. The revised framework permits ATF to include synthesised components as per Indian standards, creating a regulatory pathway for SAF adoption.

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India has also announced indicative SAF blending targets for international flights, with plans to achieve a 1% SAF blend in aviation fuel by 2027, increasing to 2% in 2028 and 5% by 2030. These targets are aligned with the broader sustainability goals of the International Civil Aviation Organization (ICAO), the United Nations aviation body that promotes emissions reduction in the sector.

The aviation industry has traditionally relied on conventional jet fuel, and airlines have raised concerns over the higher cost of SAF compared with regular ATF. Industry stakeholders have called for targeted incentives and policy support to encourage wider adoption. Experts believe a phased approach will allow airlines and fuel producers to gradually expand capacity while building a strong domestic SAF ecosystem.

The collaboration between BPCL and Akasa Air marks another step towards integrating sustainable fuels into India’s aviation sector. As passenger traffic continues to rise, the adoption of SAF is expected to play an important role in reducing carbon emissions and supporting the country’s long-term energy transition goals.

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