Fueling the Future: Air India & IOC's Green Aviation Leap

In a significant step toward decarbonising the aviation sector, Indian Oil Corporation (IOC) has signed an agreement with Air India for the supply of Sustainable Aviation Fuel (SAF), marking a major milestone in India’s green fuel transition.

IOC will commence SAF production from used cooking oil at its Panipat refinery starting December 2025, with an expected annual output of 35,000 tonnes, according to IOC Chairman Arvinder Singh Sahney. The feedstock will be sourced from major hotel and restaurant chains, including ITC and Haldiram’s.

SAF, derived from non-petroleum-based feedstocks, can reduce aviation emissions by up to 80% over its lifecycle and is certified for blending up to 50% with conventional aviation turbine fuel (ATF).

India has mandated a minimum 1% SAF blending in jet fuel supplied to international flights beginning 2027, providing regulatory momentum for sustainable aviation fuel adoption.

The IOC-Air India partnership not only supports India’s climate goals but also paves the way for broader industry collaboration. It is expected to act as a catalyst for other airlines and energy companies to integrate green fuels into the country’s aviation ecosystem.

News by Rahul Yelligetti.