Air India, Indian Oil sign MoU for supply of sustainable aviation fuel

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 decarbonization 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 significant step in expanding 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, and other officials.

AS Sahney, Chairman, IndianOil said: “The signing of this MoU with Air India represents a strategic step in India’s transition to sustainable aviation. With our ISCC-CORSIA-certified SAF from Panipat, IndianOil is ready to provide a sustainable fuel solution that will help decarbonize 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, Air India said: “Through this MoU with IndianOil, Air India is committed to support the Government of India’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 coordination with air traffic management, and has entered into an 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.

Over the last few years, Air India has adopted several green practices, including reducing single-use plastics and using lighter material for cutlery and dishes, and is optimising processes such as more frequent engine and airframe washes, implementing single-engine taxiing and autonomous-EV towing to save jet fuel.

These efforts align with India’s broader push for green aviation, which includes India’s target of 5% SAF blending by 2030 and the development of SAF supply chains across the country.

This collaboration builds upon IndianOil’s recent milestone of becoming 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), establishes IndianOil’s capability to produce SAF that meets the most stringent international sustainability and lifecycle carbon emission standards.

By integrating certified green fuels into commercial operations, IndianOil and Air India are together reinforcing India’s position as a front-runner in sustainable aviation and 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 companies’ environmental goals.