New Delhi: Indian Oil has signed a Memorandum of Understanding (MoU) with Air India to supply Sustainable Aviation Fuel (SAF).
The order comes after Indian Oil received the necessary certification for SAF production at its Panipat Refinery, becoming the first Indian petroleum company to receive such certifications from the International Civil Aviation Organisation.
Indian Oil and Air India signed the MoU August 19 in the presence of A S Sahney, Chairman of Indian Oil and Campbell Wilson, CEO of Air India.
Sahney said that the signing of this MoU with Air India represents a strategic step in India’s transition to sustainable aviation.
“Partnering with India’s flagship carrier, we are aligning national growth with global climate goals and setting a benchmark for the industry,” Sahney added.
The Air India CEO, Campbell, said that Air India is committed to supporting 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.
Earlier in July, Indian Oil announced the shutdown of its diesel desulphuriser unit at the Panipat plant to upgrade it to produce SAF. At the time, the company said that it was targeting 30,000 metric tons per year of SAF production.
Indian Oil, the largest petroleum refining company in India, said that it is also looking to upgrade its kerosene production facilities to produce SAF.
The public sector company is pushing to increase SAF output as the Indian government aims to enhance SAF use in the Indian aviation industry. The Indian government is aiming for 1 per cent SAF use in aviation by 2027 and 2 per cent by 2028.
Besides the Sustainable Aviation Fuel, India Oil also has ambitious plans for green hydrogen production. The oil major is building a 10,000-tonne-per-annum green hydrogen production facility at its Panipat plant. The company has awarded the construction order to Larsen and Toubro.
India Oil is also planning to build another 70,000 tonnes per annum green hydrogen production facility.
