Air India Partners with IOCL to Supply SAF for Net Zero 2050

20 Aug 2025 , 12:52 PM

Air India has entered into an agreement with Indian Oil Corporation Ltd. (IOCL) to source sustainable aviation fuel (SAF), marking a decisive move in its effort to cut carbon emissions and support India’s green aviation push.

The memorandum of understanding was signed by Shailesh Dhar, Executive Director (Aviation) at IndianOil, and P. Balaji, Group Head of GRC and Corporate Affairs at Air India. Indian Oil Chairman A.S. Sahney and Air India Chief Executive Officer Campbell Wilson were present at the signing.

Sahney said the collaboration highlights India’s transition towards cleaner energy in aviation. “With SAF certified under ISCC-CORSIA from our Panipat refinery, we are ready to offer a viable solution for reducing the carbon footprint of air travel. Joining hands with the country’s flag carrier sets a benchmark for the sector and brings India closer to global climate commitments,” he said.

Path to Net Zero

The partnership supports Air India’s target of achieving Net Zero emissions by 2050, a goal set in line with the International Air Transport Association (IATA). It also ensures the airline remains compliant with CORSIA, the international framework aimed at reducing carbon emissions from air travel.

Wilson said the move strengthens both the airline’s and the government’s sustainability agenda. “This agreement reinforces our resolve to contribute meaningfully to India’s long-term clean aviation plans while staying focused on our own Net Zero journey,” he added.

Fleet Upgrade and Efficiency Measures

Air India is currently undergoing its largest-ever fleet renewal programme, with 570 aircraft on order. The airline expects the new fleet, along with expansion of direct international routes, to reduce emissions from multi-stop travel.

The carrier has also introduced advanced flight planning and optimisation tools, enhanced coordination with air traffic management, and is collaborating with the Council of Scientific and Industrial Research and the Indian Institute of Petroleum on SAF development.

India’s SAF Target

India aims to achieve 5% blending of SAF by 2030. IndianOil has already secured ISCC-CORSIA certification for SAF production at its Panipat facility, becoming the first Indian company to do so. The Air India–IndianOil pact is expected to accelerate SAF adoption in the country and serve as a model for other airlines and refiners working towards the same climate goals.

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