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

New Delhi: Indian Oil Corporation Limited (Indian Oil) and Air India have signed a Memorandum of Understanding (MoU) for the supply of Sustainable Aviation Fuel (SAF). This move is aimed at reducing carbon emissions in India’s aviation sector.

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The agreement has been signed by Indian Oil's Executive Director (Aviation) Shailesh Dhar and Air India's Group Head (Governance, Regulatory, Compliance and Corporate Affairs) P Balaji in the presence of Indian Oil's Chairman AS Sahney and Air India's Managing Director & CEO Campbell Wilson.

Indian Oil recently became the first Indian company to secure ISCC CORSIA certification for SAF production at its Panipat Refinery, under the International Civil Aviation Organisation’s (ICAO) Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA). The certification validates the company’s ability to produce SAF that meets international sustainability and lifecycle emission standards.

“This MoU with Air India represents a strategic step in India’s transition to sustainable aviation. With our ISCC-CORSIA-certified SAF from Panipat, Indian Oil is ready to provide a sustainable fuel solution that will help decarbonize air travel,” said Sahney.

Air India, which has committed to achieving the International Air Transport Association’s (IATA) Net Zero 2050 target, said the agreement strengthens its efforts toward sustainable operations. “Through this MoU with Indian Oil, 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,” said Wilson.

The partnership is expected to support India’s decarbonization efforts by integrating certified green fuels into commercial aviation. Both companies said the agreement will help meet and potentially exceed CORSIA compliance requirements for international flights while ensuring a transparent and sustainable fuel supply chain.

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