Air India and Indian Oil sign MoU for SAF supply
Published on: Aug 21, 2025
Partnership marks a milestone in India’s transition to greener air travel.
Air India and Indian Oil Corporation Limited (IOCL) have signed a Memorandum of Understanding (MoU) to collaborate on the supply of Sustainable Aviation Fuel (SAF), strengthening India’s efforts to decarbonize aviation and align with global climate goals.
The agreement comes as Air India, part of the Tata Group, pursues a broad strategy to achieve the International Air Transport Association’s (IATA) Net Zero 2050 target. The airline is already investing in operational efficiency, low-carbon initiatives, and fleet renewal, and now adds SAF adoption as a key component of its sustainability roadmap.
The MoU builds on IndianOil’s recent achievement of becoming the first Indian company to receive ISCC CORSIA certification for SAF production at its Panipat Refinery, enabling it to supply certified fuels that meet stringent international standards.
“The signing of this MoU with Air India represents a strategic step in India’s transition to sustainable aviation,” said AS Sahney, Chairman of IndianOil. “With our ISCC-CORSIA-certified SAF from Panipat, we are ready to provide a fuel solution that helps decarbonize air travel. Partnering with India’s flagship carrier aligns national growth with global climate goals and sets a benchmark for the industry.”
Air India’s fleet renewal program, which includes 570 new aircrafts, will allow the airline to operate one of the world’s most efficient fleets. The carrier is also investing in advanced flight planning systems, optimizing routes in collaboration with air traffic management, and reducing emissions through initiatives such as single-engine taxiing and electric towing.
India has set a target of 5% SAF blending by 2030 as part of its wider green aviation policy. With Air India and IndianOil now working together on supply and deployment, both organizations are positioned to play leading roles in building the nation’s SAF ecosystem.
