Indian Oil Corporation Ltd has signed a letter of intent with Akasa Air to explore the future supply of sustainable aviation fuel, the company said on Thursday.
The agreement was signed at Wings India 2026 in Hyderabad and outlines a framework for collaboration between the two companies to assess the potential supply of sustainable aviation fuel, also known as SAF.
The companies said they would examine supply volumes, delivery locations and timelines, along with the use of approved sustainable feedstocks and production pathways.
Focus on SAF supply framework
Under the letter of intent, Indian Oil and Akasa Air will evaluate the feasibility of supplying sustainable aviation fuel to support the airline’s sustainability targets. The agreement does not commit either party to firm volumes or timelines.Sustainable aviation fuel is used as a lower-emission alternative to conventional jet fuel and is viewed as a pathway to reduce lifecycle greenhouse gas emissions from air travel.
“This LOI reflects our commitment to scaling low-carbon fuels and supporting our customers in their energy transition,” said Shailesh Dhar, Country Head (Aviation Business) at Indian Oil Corporation Ltd.
The aviation sector has been exploring sustainable fuel options as it works towards long-term emission reduction goals. According to Indian Oil, sustainable aviation fuel is expected to play a role in the sector’s transition towards net-zero emissions.
Indian Oil said the collaboration would draw on its fuel production, supply and logistics capabilities while assessing the commercial and operational aspects of supplying SAF to airlines.
The company did not disclose financial details or timelines linked to the proposed supply arrangement.
