IOC, Air India Sign SAF Pact for Green Aviation
Landmark deal for sustainable aviation fuel supply signed.
Indian Oil Corporation (IOC) and Air India signed a memorandum of understanding (MoU) on August 19, 2025, to supply sustainable aviation fuel (SAF), marking a pivotal step in India’s journey toward greener aviation. The agreement, formalized in New Delhi, underscores a shared commitment to reducing carbon emissions and advancing global decarbonization goals in the aviation sector.
IOC will commence SAF production at its Panipat refinery in December 2025, utilizing used cooking oil sourced from major hotel and restaurant chains like ITC and Haldiram’s. The facility is set to produce 35,000 tonnes of SAF annually, a low-carbon alternative that can be blended up to 50% with conventional jet fuel. This initiative aligns with India’s mandate for 1% SAF blending in jet fuel for international airlines starting in 2027, supporting the International Air Transport Association’s (IATA) net-zero emissions target by 2050.
The MoU was signed by IOC’s Executive Director (Aviation) Shailesh Dhar and Air India’s Group Head of Governance, Regulatory, Compliance, and Corporate Affairs, P Balaji, in the presence of IOC Chairman Arvinder Singh Sahney and Air India CEO Campbell Wilson. Sahney emphasized IOC’s pioneering role, noting that the Panipat refinery is the first in India to receive ISCC CORSIA certification, meeting stringent international sustainability and carbon emission standards under the International Civil Aviation Organization’s Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA).
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“This partnership with Air India is a strategic milestone in India’s transition to sustainable aviation,” Sahney said. “Our certified SAF will decarbonize air travel while aligning with national and global climate goals.” Wilson echoed this sentiment, highlighting Air India’s commitment to the Government of India’s sustainability initiatives and its own environmental targets. The collaboration aims to ensure a reliable and transparent SAF supply to meet and exceed CORSIA requirements for international flights.
By integrating SAF into commercial operations, IOC and Air India are positioning India as a leader in sustainable aviation. The partnership not only supports environmental goals but also sets a benchmark for the aviation industry, fostering innovation and reinforcing India’s role in the global energy transition. As the SAF production ramps up, this initiative is expected to pave the way for cleaner skies and a more sustainable future for air travel in India and beyond.
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