Indian Oil Corp. and Air India have signed a memorandum of understanding for the supply of sustainable aviation fuel, marking a major step towards a greener future for Indian aviation, according to a release issued on Tuesday.
This pact outlines the shared commitment of both companies to promote the adoption of low-carbon fuels in aviation, support global decarbonisation goals, and transition towards sustainable air transport operations.
The memorandum was signed by Indian Oil Executive Director (Aviation) Shailesh Dhar and Air India Group Head of Governance, Regulatory, Compliance and Corporate Affairs P Balaji in the presence of Indian Oil Chairman AS Sahney and Air India CEO Campbell Wilson.
"The signing of this MoU with Air India represents a strategic step in India's transition to sustainable aviation," said Sahney. "With our ISCCCORSIA-certified SAF from Panipat, IndianOil is ready to provide a sustainable fuel solution that will help decarbonise air travel."
The corporation has become the first Indian company to secure ISCC CORSIA certification for SAF production at its Panipat Refinery. Granted under ICAO's Carbon Offsetting and Reduction Scheme for International Aviation, the certification validates Indian Oil's capability to produce SAF that complies with the highest global benchmarks on sustainability and lifecycle carbon emissions, the release added.
"Through this MoU with Indian Oil, 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," stated Wilson on the occasion.
"By integrating certified green fuels into commercial operations, IndianQil and Air India are together reinforcing India's position as a front-runner in sustainable aviation and energy transition," said the release.
Shares of Indian Oil ended 1.23% higher at Rs 142.03 apiece on the National Stock Exchange, outperforming the benchmark Nifty 50 which ended 0.42% higher.
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