Akasa Air and BPCL Join Hands to Strengthen India’s Sustainable Aviation Fuel Ecosystem

India’s aviation sector is taking another step towards cleaner and more sustainable operations as Akasa Air and Bharat Petroleum Corporation Limited (BPCL) have signed a Memorandum of Understanding (MoU) to support the development of a Sustainable Aviation Fuel (SAF) ecosystem across the country. The partnership aims to establish a structured framework for the supply and adoption of SAF-blended Aviation Turbine Fuel (ATF), while supporting domestic production planning and helping reduce the carbon footprint of air travel.

The agreement marks an important development for India’s aviation infrastructure as airlines, fuel suppliers and policymakers increasingly work together to accelerate the transition towards low-carbon aviation. Sustainable Aviation Fuel is widely regarded as one of the most effective solutions for reducing greenhouse gas emissions from commercial aviation without requiring major modifications to existing aircraft or airport infrastructure.

Under the MoU, Akasa Air and BPCL will collaborate to create a framework for the supply and offtake of SAF-blended ATF at selected airports across India. The partnership will also focus on forecasting future fuel demand, supporting production planning and gradually increasing the use of sustainable aviation fuel as India’s domestic SAF ecosystem expands.

The initiative goes beyond fuel supply. Both organisations will work together on policy advocacy, industry engagement and knowledge sharing to help build a stronger ecosystem for sustainable aviation fuel. This collaborative approach is expected to support India’s wider decarbonisation objectives while aligning with the International Civil Aviation Organization’s Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA), which encourages airlines worldwide to lower aviation-related carbon emissions.

As India continues to witness rapid growth in passenger traffic and airport infrastructure, the availability of sustainable fuel solutions is becoming increasingly important. The expansion of airports, airline fleets and air connectivity has significantly increased demand for aviation fuel, making cleaner alternatives essential for achieving long-term environmental goals without slowing sectoral growth.

Akasa Air said the partnership will strengthen its readiness to integrate Sustainable Aviation Fuel into its operations as commercial availability improves across the country.

Ankur Goel, Chief Financial Officer of Akasa Air, said the collaboration with BPCL enhances the airline’s operational preparedness for Sustainable Aviation Fuel while supporting the development of the broader supply ecosystem in India.

BPCL also reaffirmed its commitment to supporting the aviation industry’s transition towards cleaner energy solutions.

Subhankar Sen, Director (Marketing), BPCL, said the company remains focused on promoting sustainable fuel solutions and innovation that can help reduce emissions while supporting the future growth of the aviation sector.

The collaboration reflects the growing role of energy companies in supporting India’s transport decarbonisation efforts. Alongside investments in electric mobility, green hydrogen and biofuels, Sustainable Aviation Fuel is emerging as another critical pillar of the country’s clean energy transition.

Akasa Air currently operates a modern fleet of Boeing 737 MAX aircraft, which the airline says consume around 20 per cent less fuel and produce lower emissions compared to the aircraft they replace. The carrier has also introduced multiple fuel-efficiency measures and operational initiatives aimed at improving sustainability across its network.

Industry experts believe that wider adoption of Sustainable Aviation Fuel will require coordinated investment in feedstock development, refining capacity, logistics infrastructure and supportive policy frameworks. Partnerships such as the one between Akasa Air and BPCL are expected to play an important role in creating the supply chain needed for large-scale deployment of SAF in India.

As India’s aviation sector continues its rapid expansion, collaborations between airlines, energy companies and government agencies are likely to become increasingly important in building a cleaner, more resilient and future-ready aviation ecosystem. The Akasa Air-BPCL partnership represents another step towards integrating sustainability into the country’s growing aviation infrastructure while supporting long-term environmental and economic objectives.