INDIAN OIL–AIR INDIA MOU
In a significant move, Indian Oil Corporation (IOC) has signed a landmark Memorandum of Understanding (MoU) with Air India representing a clean and green environment strategy, regarding the supply of Sustainable Aviation Fuel (SAF).
This alliance is a significant step towards decarbonising India’s aviation sector and fulfilling the nation’s net zero by 2070 pledge. The production will be undertaken by IOC’s Panipat refinery using used cooking oil as raw material which will be sourced from large hotel chain restaurants like Haldiram who discard oil after single use, the initiative not only addresses aviation emissions but also promotes circular economy practices.
KEY ASPECTS
- This is India’s first SAF agreement, to be supplied from a domestic oil company to an airline.
- Production scale: Almost 35,000 tonnes annually is the SAF production target, and it is scheduled to be started by the end of this year.
- Global recognition: IOC has become the first Indian oil company to obtain ISCC CORSIA certification, ensuring international sustainability compliance.
- Environmental impact: In comparison with conventional jet fuel, SAF is more efficient in reducing aviation carbon emissions by upto 80%
- Market relevance: Following the MoU, IOC shares drew investor attention, signalling strong confidence in green energy transition strategies.
LEGAL FRAMEWORK
- Global Regime:
- CORSIA (Carbon Offsetting and Reduction Scheme for International Aviation) by ICAO mandates airlines worldwide to track, offset, and reduce emissions.
- ISCC Certification: ISCC stands for International Sustainability and Carbon Certification- It is a system of providing certification on various sustainability products.
- Indian Policy Landscape:
- Energy Conservation Act, 2001 This act aims to promote energy efficiency, enforce energy conservation and reduce energy consumption.
- National Bio-Energy Mission & Ethanol Blending Programme This programme promotes renewable fuels dependence.
- COP26 Commitment: India’s pledge to achieve net zero emissions by 2070 forms the overarching policy goal to which SAF directly contributes.
CONCLUSION
This is a strategic agreement between IOCL – Air India, marks a milestone in the country’s clean and green drive and also paves way for a Clean Aviation roadmap. India is aligning itself to a cleaner and greener environment with international norms in the aviation sector as well by converting waste into fuel additionally backed by global sustainability certificate.
