New Delhi: Indian Oil Corporation Limited (IOCL) on Thursday announced that it has signed a Letter of Intent (LoI) with Akasa Air to explore the future supply of Sustainable Aviation Fuel (SAF). The collaboration aims to support the airline’s sustainability and decarbonisation goals while advancing low-carbon fuel solutions in India’s aviation sector.
Framework for Sustainable Aviation Collaboration
Under the LoI, Indian Oil and Akasa Air will establish a structured framework to evaluate the potential supply of SAF, including volumes, delivery locations, and timelines. The partnership will also assess the use of approved sustainable feedstocks and production pathways, in line with global standards and regulatory requirements.
Indian Oil stated that the collaboration aligns with its broader strategy of supporting customers in their energy transition by leveraging its expertise in fuel production, supply chain logistics, and distribution.
Role of SAF in Reducing Aviation Emissions
Sustainable Aviation Fuel is considered a critical solution for reducing lifecycle greenhouse gas emissions from air travel. SAF can significantly lower carbon emissions compared to conventional jet fuel and is expected to play a vital role in the aviation industry’s journey toward net-zero emissions.
With air traffic expected to grow in the coming years, the adoption of SAF is increasingly viewed as essential for achieving long-term sustainability in the aviation sector.
Indian Oil’s Commitment to Low-Carbon Fuels
Commenting on the development, Shailesh Dhar, Country Head (Aviation Business), Indian Oil, said the LoI reflects the company’s commitment to expanding low-carbon fuel solutions.
“By leveraging our capabilities across fuel production, supply, and logistics, we aim to play a meaningful role in enabling an early transition to the usage of Sustainable Aviation Fuel,” he said.
Next Steps Under the LoI
Pursuant to the LoI, both companies will jointly work on:
- Assessing SAF supply volumes and logistics
- Identifying delivery locations and timelines
- Evaluating sustainable feedstocks and production technologies
The discussions will help lay the groundwork for future commercial arrangements related to SAF supply.
About Indian Oil Corporation Limited
Indian Oil Corporation Limited is India’s largest commercial oil company, engaged in refining, pipeline transportation, and marketing of petroleum products. With a strong focus on energy transition and sustainability, Indian Oil is actively investing in low-carbon fuels, renewable energy, and green mobility solutions to support India’s climate goals and energy security.
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