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Home»Business»Indian Oil to supply sustainable aviation fuel to Air India; MoU inked to set the ball rolling | Business News
Business

Indian Oil to supply sustainable aviation fuel to Air India; MoU inked to set the ball rolling | Business News

August 19, 2025No Comments5 Mins Read
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The initial agreement between IOC and Air India comes close on the heels of the refiner receiving international certification for production of the biofuel from used cooking oil at its Panipat refinery.
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Tata group airline Air India and India’s largest refiner and gasoline retailer Indian Oil Company (IOC) have inked a memorandum of understanding, laying the groundwork for provide of sustainable aviation gasoline (SAF) manufactured by IOC to Air India. That is the primary settlement between an Indian airline and a gasoline provider with respect to SAF, a biofuel that’s anticipated to be a key pillar of the aviation sector’s decarbonisation efforts over the approaching years and many years.

The preliminary settlement between IOC and Air India comes shut on the heels of the refiner receiving worldwide certification for manufacturing of the biofuel from used cooking oil at its Panipat refinery. Though the settlement is an preliminary one, executives within the two firms anticipate it to translate right into a agency SAF provide pact over the approaching months.

By the tip of this calendar 12 months, IOC could have the capability to supply 35,000 tonnes per 12 months of SAF from used cooking oil, which will likely be sourced from giant lodge chains, eating places, and sweets and snacks majors like Haldiram’s, which often discard cooking oil after single use.

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IOC grew to become the primary firm in India to obtain the ISCC CORSIA certification for SAF manufacturing at its Panipat refinery in Haryana. ISCC CORSIA is a certification system for compliance with the Carbon Offsetting and Discount Scheme for Worldwide Aviation (CORSIA) standards for SAF. It’s a prerequisite for business SAF manufacturing. In line with IOC, the certification additionally units a benchmark for different home refiners and trade gamers to scale up SAF manufacturing.

SAF is a biofuel that’s produced from sustainable feedstocks and has chemistry much like typical aviation turbine gasoline (ATF) or jet gasoline, which is derived from crude oil. Which means that present plane engines can simply use the SAF-ATF mix. For example, Airbus claims that every one its plane are able to flying on a most 50 per cent mix of SAF and traditional gasoline. Numerous Indian airways have already operated efficiently a number of take a look at and demonstration flights utilizing jet gasoline doped with SAF in varied proportions. In line with aviation trade and power specialists, SAF alone is more likely to account for over 60 per cent of the worldwide aviation trade’s decarbonisation efforts.

The 12 months 2027 will likely be an essential one for adoption of SAF globally with the obligatory part of CORSIA kicking in. CORSIA, which applies to worldwide flights, would require airways globally to offset any development in carbon dioxide emissions past the 2020 ranges. Utilizing jet gasoline blended with SAF is likely one of the methods by which carriers can preserve their emissions beneath permissible ranges.

India, too, should adjust to the obligatory part beginning 2027. In keeping with the CORSIA framework, India’s Nationwide Biofuel Coordination Committee (NBCC) has set the preliminary indicative targets for mixing of SAF with jet gasoline 2027 onwards, beginning with worldwide flights. The indicative targets are: 1 per cent mixing in 2027 and a pair of per cent in 2028. The federal government is anticipated to announce SAF mixing mandates for home flights in India as properly, however solely after mixing for worldwide flights begins 2027 onwards.

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“By integrating licensed inexperienced fuels into business operations, Indian Oil and Air India are collectively reinforcing India’s place as a front-runner in sustainable aviation and power transition. By this MoU, IOCL and Air India intention to collaborate on the availability of SAF to fulfill CORSIA targets for worldwide flights, guaranteeing a dependable, clear, and sustainable gasoline provide to assist each firms’ environmental objectives,” Air India and IOC stated in a press release.

In line with Air India, the MoU is a part of the airline’s efforts that align with India’s broader push for inexperienced aviation, which incorporates mixing common jet gasoline with SAF, and improvement of provide chains for the biofuel throughout the nation. As a part of its broader technique to realize the Worldwide Air Transport Affiliation’s goal of net-zero emissions by 2050 and adjust to CORSIA obligations, Air India is actively pursuing initiatives in operational effectivity, low-carbon emissions, and SAF.

Whereas IOC has already acquired the certification for the used cooking oil pathway for SAF manufacturing, the corporate can be engaged on organising models primarily based on the alcohol-to-jet pathway, which includes utilizing ethanol as a feedstock to make SAF. Just a few different firms in India are additionally working to construct models primarily based on the assorted SAF manufacturing pathways.

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Sukalp Sharma is a Senior Assistant Editor with The Indian Specific and writes on a bunch of topics and sectors, notably power and aviation. He has over 13 years of expertise in journalism with a physique of labor spanning areas like politics, improvement, fairness markets, corporates, commerce, and financial coverage. He considers himself an above-average photographer, which works properly together with his love for journey. … Learn Extra

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