Air India Just Signed A Game-Changing Deal For Green Aviation Fuel: Here’s Why It Matters

Indian Oil Corporation Limited and Air India on Monday signed a Memorandum of Understanding (MoU) for the supply of Sustainable Aviation Fuel (SAF), marking a step toward reducing carbon emissions in India’s aviation sector.

MoU Marks Strategic Partnership to Decarbonize India’s Aviation Sector

As per a press release by IndianOil, the MoU was signed by Shailesh Dhar, executive director (Aviation) at IndianOil, and P. Balaji, group head – governance, regulatory, compliance (GRC) and corporate affairs at Air India, in the presence of A. S. Sahney, chairman of IndianOil, and Campbell Wilson, CEO of Air India.

The agreement underscores the shared commitment of both companies to support global decarbonization efforts and accelerate the transition toward cleaner air transport.

Highlighting the significance of the agreement, A. S. Sahney said, “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, IndianOil is ready to provide a sustainable fuel solution that will help decarbonize air travel. Partnering with India’s flagship carrier, we are aligning national growth with global climate goals and setting a benchmark for the industry.”

Collaboration with IndianOil Boosts Air India’s Sustainability Goals

This development builds upon IndianOil’s milestone achievement of becoming the first Indian company to receive ISCC CORSIA certification for SAF production at its Panipat Refinery.

The certification, granted under the International Civil Aviation Organization’s (ICAO) Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA), confirms IndianOil’s ability to produce SAF that complies with stringent global standards on sustainability and lifecycle carbon emissions.

Air India’s CEO and MD, Campbell Wilson, noted that the airline’s collaboration with IndianOil is part of its broader sustainability agenda. “Through this MoU with IndianOil, Air India is committed to support the Government of India’s initiatives to promote sustainable development in the aviation sector and to further its own sustainability goals to achieve the IATA Net Zero by 2050 target,” Wilson said.

By integrating certified green fuels into commercial operations, the partnership aims to ensure a reliable and transparent SAF supply chain that not only meets but potentially exceeds CORSIA targets for international flights. (Inputs from ANI)

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