Archive · 29 Jan 2026
IOC and Akasa Air sign SAF agreement
Indian Oil Corporation and Akasa Air have agreed to work together to provide a special kind of fuel called Sustainable Aviation Fuel (SAF).
This fuel helps airplanes produce fewer harmful gases.
They signed an agreement at an event called Wings India 2026.
The goal is to make flying more environmentally friendly.
They will figure out how much fuel to supply, where to deliver it, and how to make it using sustainable materials.
This is part of their plan to use cleaner energy in the future.
However, there are challenges like high production costs and the need for policy support to make SAF more affordable and widely used.
India is also working on improving the manufacturing of aircraft components to support the aviation industry.
Indian Oil Corporation (IOC) and Akasa Air signed a Letter of Intent (LoI) at Wings India 2026 to explore the future supply of Sustainable Aviation Fuel (SAF).
The agreement aims to support Akasa Air's sustainability goals through the potential supply of SAF.
SAF is expected to play a key role in reducing greenhouse gas emissions from air travel.
IOC and Akasa Air will evaluate potential SAF supply volumes, delivery locations, timelines, and the use of sustainable feedstocks.
The collaboration reflects IOC's commitment to scaling low-carbon fuels and supporting the energy transition in the aviation sector.
- Who
- Indian Oil Corporation (IOC) and Akasa Air
- What
- Signed a Letter of Intent (LoI) to explore the future supply of Sustainable Aviation Fuel (SAF)
- When
- January 29, 2026
- Where
- Wings India 2026
- Why
- To support Akasa Air's sustainability goals and reduce greenhouse gas emissions from air travel
Supporters of SAF
Challenges to SAF
Policy and Regulation
Supporters of SAF
Effective policy and proper regulations are essential for the success of SAF.
Challenges to SAF
Policy intervention is required to address high production costs and pricing issues.
Capital Availability
Supporters of SAF
Capital availability for investors is crucial for scaling SAF production.
Challenges to SAF
High capital investments are needed, especially for hard metal instruments, which may be a barrier for MSMEs.
Pricing
Supporters of SAF
Incentivizing SAF through pricing mechanisms can promote its adoption, as seen in the US and other nations.
Challenges to SAF
High cost of production and pricing make SAF more expensive than ATF, requiring policy intervention to make it acceptable.
- Companies Involved
- Indian Oil Corporation (IOC) and Akasa Air
- Agreement Type
- Letter of Intent (LoI)
- Event
- Wings India 2026
- Purpose
- Explore future supply of Sustainable Aviation Fuel (SAF)
- Key Goal
- Support Akasa Air's sustainability goals
- SAF Role
- Reduce lifecycle greenhouse gas emissions from air travel
- IOC's Commitment
- Scaling low-carbon fuels and supporting energy transition
- Evaluation Areas
- SAF supply volumes, delivery locations, timelines, and sustainable feedstocks
- Feedstock Availability
- Agricultural waste, municipal solid waste, and used cooking oil
- Challenges
- High production cost, pricing, and policy intervention
- Government Mandates
- 1% SAF blending by 2027, 2% by 2028, 5% by 2030
- Refineries Producing SAF
- Indian Oil’s Panipat refinery and BPCL’s Mumbai refinery
- Aircraft Component Manufacturing
- India needs to bridge gaps in critical and niche areas
- Global SAF Market Potential
- India has the potential to become a hub for SAF and an exporter
