Indian Oil, Air India Ink MoU for Sustainable Aviation Fuel Supply

• IOC to supply sustainable aviation fuel from used cooking oil to Air India
• SAF production certified under ISCC CORSIA for global sustainability standards
• MoU promotes low-carbon aviation and Air India’s net-zero 2050 goals

Indian Oil Corporation (IOC) has made a significant move toward greener aviation in India after signing a historic agreement to supply sustainable aviation fuel (SAF) to Air India. The agreement symbolizes the commitment of both companies to invest in low-carbon aviation and to support global decarbonisation efforts.

According to IOC Chairman Arvinder Singh Sahney, IOC plans to source used cooking oil to produce SAF at its Panipat refinery, starting in December of this year. The facility is expected to produce 35,000 tonnes of SAF annually, with the cooking oil sourced from major hotel and restaurant chains, including ITC and Haldiram's.

SAF, a non-petroleum alternative to conventional jet fuel, can be blended into aviation turbine fuel (ATF) based on SAF availability, up to 50%. India is going to require 1% SAF blending in jet fuel for international airlines by 2027.

The official statement said, "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 of objectives (SOO) between IOC and Air India shows the common commitment to adopting low-carbon fuels, to support sustainable aviation and global decarbonization. Signed by Shailesh Dhar, Executive Director (Aviation), IOC, and P Balaji, Group Head – Governance, Regulatory, Compliance & Corporate Affairs, Air India, in the presence of Sahney and Air India's CEO Campbell Wilson, the SOO is the first step in a formal working arrangement to initiate the usage of new fuels for aviation and broadly contribute to sustainable aviation in India.

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Sahney stated, "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".

The agreement comes on the heels of IOC also being named the first Indian company to achieve ISCC CORSIA certification for SAF production in Panipat. The ISCC CORSIA certification signifies, under ICAO's Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA), that IOC's sustainable aviation fuel meets strict international standards for sustainability and lifecycle carbon emissions.

Wilson noted that it also supports the Government of India's sustainability agenda (as part of Aviation) and will also help Air India achieve its own sustainability agenda, which is aligned with IATA's net-zero by 2050 goal. IOC and Air India's adoption of certified green fuels will enhance India's position of leadership in sustainable aviation, as well as in the energy transition.

The statement further mentioned, "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".