Indian Oil Corporation (IOC) has signed a landmark Memorandum of Understanding (MoU) with Air India to supply Sustainable Aviation Fuel (SAF). This initiative is a crucial step towards green aviation, reduced carbon emissions, and alignment with India’s climate commitments under global frameworks.
Key Highlights
First Production Facility:
- IOC will begin SAF production from used cooking oil at its Panipat Refinery from December 2025.
- Capacity: 35,000 tonnes annually.
- Feedstock sourced from hotel & restaurant chains like ITC and Haldiram’s.
MoU Objectives:
- Promote adoption of low-carbon fuels in aviation.
- Support global decarbonisation goals.
- Contribute to India’s green transition in aviation.
Air India’s Sustainability Commitments:
- Aligned with IATA Net Zero by 2050.
- Compliant with CORSIA (Carbon Offsetting and Reduction Scheme for International Aviation) obligations.
- Already pursuing operational efficiency + low-carbon initiatives.
Certification Milestone:
- IOC is the first Indian company to receive ISCC CORSIA certification for SAF.
- Certification issued under ICAO’s CORSIA framework, ensuring international sustainability standards.
Government Policy Support:
- India has mandated 1% SAF blending in jet fuel sold to international airlines from 2027.
- Policy aims to integrate green fuels in commercial operations, making India a front-runner in sustainable aviation.
About Sustainable Aviation Fuel (SAF)
- Definition: Non-petroleum alternative fuel produced from renewable feedstocks (like used cooking oil, crop residues, municipal solid waste, algae, etc.).
- Benefits:
- Reduces lifecycle greenhouse gas emissions up to 80% compared to conventional jet fuel.
- Compatible with existing jet engines – can be blended up to 50% with Aviation Turbine Fuel (ATF).
- Global Context:
- SAF adoption is key for aviation industry’s decarbonisation.
- IATA projects SAF to contribute 65% of aviation emission reduction by 2050.
About IOC (Indian Oil Corporation)
- Founded: 1959.
- Headquarters: New Delhi.
- Chairman: Shrikant Madhav Vaidya (as of 2025).
- Significance: India’s largest oil refining & fuel marketing company; operates major refineries including Panipat, Paradip, Mathura, etc.
- Recent Green Initiative: First Indian company to achieve CORSIA-certified SAF production.
About Air India
- Founded: 1932 (by JRD Tata as Tata Airlines; renamed Air India in 1946).
- Ownership: Tata Group (since 2022 privatization).
- Current CEO & MD: Campbell Wilson.
- Network: Largest international carrier from India; member of Star Alliance.
- Sustainability Drive: Expanding green aviation portfolio with SAF adoption.
About CORSIA & IATA Net Zero Goals
CORSIA (Carbon Offsetting and Reduction Scheme for International Aviation):
- Global carbon reduction framework under ICAO (International Civil Aviation Organization).
- Ensures airlines offset emissions from international flights to stabilize CO₂ levels.
IATA Net Zero by 2050:
- International Air Transport Association’s target for airlines to achieve net zero carbon emissions by 2050.
- Relies heavily on SAF, carbon offsets, and new technologies.
Key Facts
- India’s Aviation Regulator: Directorate General of Civil Aviation (DGCA), under Ministry of Civil Aviation.
- Union Minister of Civil Aviation (2025): Kinjarapu Ram Mohan Naidu.
- Global Aviation Body: ICAO (HQ: Montreal, Canada).
- IATA HQ: Montreal, Canada (founded 1945, 300+ airlines).
- India’s Largest Airport by Passenger Traffic: Indira Gandhi International Airport, New Delhi.
- India’s First Greenfield Airport: Kempegowda International Airport, Bengaluru.