Indian Oil Corporation (IOC) has signed a partnership with Air India to begin large-scale production of Sustainable Aviation Fuel (SAF) in the country. From December 2025, IOC’s Panipat refinery will produce 35,000 tonnes of SAF annually using used cooking oil as the primary feedstock.

This initiative makes IOC the first Indian company to secure ISCC-CORSIA certification for SAF, ensuring compliance with global sustainability and emission reduction standards. The tie-up with Air India will enable the airline to blend SAF with conventional jet fuel, helping it meet domestic and international decarbonization targets.

The project is seen as a critical step in reducing the carbon footprint of India’s aviation sector, which is among the fastest growing in the world. SAF has the potential to cut lifecycle emissions by up to 80% compared to fossil-based jet fuel. Industry experts believe large-scale adoption of SAF will be essential for meeting India’s climate commitments and the International Civil Aviation Organization’s global blending targets.

This collaboration also aligns with India’s broader push toward energy transition and circular economy models. By converting waste cooking oil into aviation fuel, the project combines sustainability with innovation, creating value out of waste while supporting environmental goals.