Indian Oil Signs MoU with Air India to Supply Sustainable Aviation Fuel

Indian Oil Corporation has signed a Memorandum of Understanding (MoU) with Air India to supply Sustainable Aviation Fuel (SAF). The deal follows Indian Oil’s recent certification from the International Civil Aviation Organisation (ICAO), making it the first Indian petroleum company to achieve this recognition.

The MoU (Memorandum of Understanding) was signed in the presence of A.S. Sahney, Chairman of Indian Oil, and Campbell Wilson, CEO of Air India. Sahney said the agreement reflects India’s push towards greener aviation, while Wilson confirmed Air India’s commitment to IATA’s Net Zero 2050 target.

Indian Oil’s SAF Production

In July, Indian Oil shut down its diesel desulphuriser unit at the Panipat refinery to upgrade it for SAF production. The company is targeting 30,000 metric tonnes of SAF annually and is also upgrading kerosene facilities for the same.

The Indian government aims to introduce 1% SAF blending in aviation by 2027 and 2% by 2028, and Indian Oil’s expansion supports this target.

Green Hydrogen Ambitions

Apart from SAF, Indian Oil is also investing in green hydrogen. The company is building a 10,000-tonne-per-annum hydrogen plant at Panipat with Larsen & Toubro and has plans for a much larger 70,000-tonne facility.

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IOC Share Price Movement

Indian Oil Corporation share price (NSE: IOC) is currently trading at ₹142.03 as of August 20, 2025, 10:33 am IST, showing a slight gain of 0.014%. The stock opened at ₹142.01, touched a high of ₹142.70, and a low of ₹141.81 during the session. With a market capitalisation of ₹2.01 lakh crore, it trades at a P/E ratio of 11.60 and offers a dividend yield of 2.11%. Over the past 52 weeks, the share price has ranged between ₹110.72 and ₹184.00. The company also declares a quarterly dividend of ₹0.75 per share.

Conclusion

This MoU marks a major step in India’s clean energy journey, aligning aviation with sustainability goals. With SAF production and hydrogen expansion, Indian Oil is positioning itself as a key player in India’s energy transition.

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