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IndianOil and Air India Sign Sustainable Aviation Fuel Supply Pact

The agreement signals initial commercialization ahead of CORSIA’s mandatory phase.

Overview

  • The companies signed an MoU on Tuesday to supply sustainable aviation fuel for Air India’s operations.
  • IndianOil’s Panipat refinery is India’s first ISCC CORSIA-certified facility for producing SAF from used cooking oil.
  • Commercial production is targeted by December with an annual capacity of about 35,000 tonnes.
  • IndianOil says that output would be sufficient for India’s 1% international blending goal in 2027, with NBCC setting 2% for 2028.
  • Feedstock will be sourced from large hotel and restaurant chains, while collection from small users remains difficult and SAF currently costs roughly three times conventional jet fuel.