IOC signs pact for supply of sustainable aviation fuel to Air India

New Delhi, Aug 19 (PTI) Indian Oil Corporation (IOC) has signed a landmark agreement to supply sustainable aviation fuel to Air India, representing a significant step towards a greener and cleaner aviation in India.

IOC plans to begin production of sustainable aviation fuel (SAF) from used cooking oil starting December this year at its Panipat refinery, according to Chairman Arvinder Singh Sahney. The facility is expected to produce 35,000 tonne of green fuel annually, using waste cooking oil sourced from hotel and restaurant chains such as ITC and Haldiram's.

SAF is an alternative fuel made from non-petroleum feedstocks that reduces emissions from air transportation. It can be blended up to 50 per cent in conventional aviation turbine fuel (ATF or jet fuel), depending on availability. India has mandated 1 per cent SAF blending in jet fuel sold to international airlines from 2027.

IOC on Tuesday signed a memorandum of understanding (MoU) which "outlines the shared commitment of both parties to promote the adoption of low-carbon fuels in aviation, support global decarbonisation goals, and contribute to the transition toward more sustainable air transport operations," it said in a statement.

The MoU was signed by Shailesh Dhar, Executive Director (Aviation), IOC, and P Balaji, Group Head - Governance, Regulatory, Compliance (GRC) and Corporate Affairs, Air India, in the presence of Sahney and Air India CEO Campbell Wilson.

"This collaboration reaffirms IOC's role as a trailblazer in India's energy transition, bringing India closer to a greener, cleaner aviation future," the statement said.

IOC has become the first Indian company to receive ISCC CORSIA certification for SAF production at its Panipat refinery.

The certification is granted under ICAO's Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA), which establishes IOC's capability to produce SAF that meets the most stringent international sustainability and lifecycle carbon emission standards.

Sahney 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, IOC is ready to provide a sustainable fuel solution that will help decarbonise air travel. Partnering with India's flagship carrier, we are aligning national growth with global climate goals and setting a benchmark for the industry." Wilson said through this MoU, Air India is committed to supporting 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.

By integrating certified green fuels into commercial operations, IOC and Air India are together reinforcing India's position as a front-runner in sustainable aviation and energy transition.

"Through this MoU, IOC and Air India aim to collaborate on the supply of SAF to meet CORSIA targets and even exceeding them for international flights, ensuring a reliable, transparent, and sustainable fuel supply to support both companies' environmental goals," the statement added. PTI ANZ ANZ ANU ANU