Air India, Indian Oil sign agreement for SAF supply

Photo: Air India

Air India and Indian Oil Corp. Ltd. signed a memorandum of understanding (MOU) Aug. 19 for the supply of sustainable aviation fuel (SAF), marking what Air India said is a major step towards a greener future for Indian aviation.

Under the MOU, Air India, a Tata Group company, and Indian Oil 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 International Air Transport Association’s net zero by 2050 target and comply with CORSIA obligations, Air India said it is actively pursuing initiatives in operational efficiency, low-carbon emissions and now, SAF.

The airline said this MOU marks a significant step in expanding its green-aviation portfolio.

“The signing of this MOU with Air India represents a strategic step in India’s transition to sustainable aviation,” said Arvinder Singh Sahney, the chairman of Indian Oil. “With our ISCC CORSIA-certified SAF from Panipat, Indian Oil 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, the CEO and managing director of Air India, added, “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 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 nonstop city pairs will result in less emissive flights and itineraries, the company said.

Air India added that it has also adopted market-leading flight planning and optimization systems, including upgrading its route-planning software and coordination with air-traffic management, and the airline 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.

The airline said that over the past few years it has adopted several green practices, including reducing single-use plastics and using lighter material for cutlery and dishes, and it is optimizing 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 percent SAF blending by 2030 and the development of SAF supply chains across the country.

This collaboration builds upon Indian Oil’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 the International Civil Aviation Organization’s Carbon Offsetting and Reduction Scheme for International Aviation establishes Indian Oil’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, Indian Oil and Air India said that together they are reinforcing India’s position as a frontrunner in sustainable aviation and energy transition.

Through this MOU, Indian Oil 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.