In an era where the aviation sector is under increasing scrutiny for its carbon footprint, India is making significant strides in sustainable aviation fuel (SAF) adoption. As one of the fastest-growing aviation markets globally, the country’s efforts to integrate SAF into its energy landscape hold immense potential to reduce emissions and contribute to global sustainability targets. However, challenges persist, ranging from feedstock availability to economic feasibility. IRENA’s report on Sustainable Aviation Fuels in Southeast Asia gives a perspective on the bio based solutions.
Urgent need for SAF in India
Aviation contributes approximately 2-3% of global carbon dioxide (CO2) emissions. With India’s rapid economic expansion and a growing middle-class population, air travel demand is surging. The Indian aviation sector is projected to become the third-largest globally by 2030. Given the carbon-intensive nature of traditional jet fuel, the need for alternative fuels is urgent. SAF, derived from biomass, waste oils, agricultural residues, and synthetic processes, offers a promising solution.
India’s current SAF policy landscape
The Indian government has acknowledged the importance of SAF and is gradually formulating policies to facilitate its adoption. The Ministry of Civil Aviation and the Ministry of Petroleum and Natural Gas are working on a framework to encourage SAF production and utilisation. The ‘Repurpose Used Cooking Oil’ (RUCO) initiative by the Food Safety and Standards Authority of India (FSSAI) exemplifies efforts to use waste cooking oil for biofuel production, potentially contributing to SAF supply.
In 2023, India’s first SAF-powered commercial flight took off, signaling a crucial milestone. The government is also engaging with global agencies like the International Civil Aviation Organisation (ICAO) and the International Renewable Energy Agency (IRENA) to align its SAF strategy with international standards.
Feedstock potential and challenges
India possesses substantial feedstock potential for SAF production, particularly in agricultural residues and waste oils. The country generates millions of tonnes of agricultural waste, including rice husks and sugarcane bagasse, which can be converted into biofuels. Additionally, India is one of the largest producers of non-edible oils like jatropha, a potential feedstock for hydroprocessed esters and fatty acids synthetic paraffinic kerosene (HEFA-SPK), one of the leading SAF production technologies.
However, feedstock collection and processing remain significant barriers. Supply chain inefficiencies, lack of infrastructure, and competing demands for biomass (such as for biogas and bioethanol) pose challenges to large-scale SAF adoption. Without a clear national SAF policy and dedicated financial incentives, investors may hesitate to commit to SAF production.
Economic viability and investments
A key hurdle in SAF adoption is its cost competitiveness. SAF currently costs 2-3 times more than conventional jet fuel. Given the price-sensitive nature of India’s airline industry, absorbing these costs without policy incentives is difficult. The Indian government has been exploring mechanisms such as carbon pricing, tax benefits, and SAF blending mandates to create a viable market.
Foreign investment and public-private partnerships could accelerate SAF deployment in India. Global players like Neste, Shell, and Boeing have shown interest in India’s biofuel sector. Domestic oil refineries, including Indian Oil Corporation (IOC) and Bharat Petroleum (BPCL), have also initiated research into SAF production.
Comparative insights from Southeast Asia
India can draw valuable lessons from Southeast Asian nations, particularly Indonesia, Malaysia, and Thailand, which have been pioneering SAF development. Indonesia and Malaysia, leveraging their palm oil industry, have set ambitious SAF production roadmaps. Thailand’s focus on sugarcane-based ethanol for aviation fuel highlights the role of agriculture in SAF production.
While palm oil remains a controversial SAF feedstock due to deforestation concerns, India’s vast non-edible oil reserves could provide a sustainable alternative. Additionally, India’s existing ethanol infrastructure could be repurposed to produce alcohol-to-jet (ATJ) SAF, following Thailand’s example.
The road ahead: Policy recommendations
For India to become a key player in SAF production, a multi-pronged approach is necessary:
- Clear SAF Mandates: Establishing blending mandates (such as requiring airlines to use 1-5% SAF) would drive demand and attract investment.
- Financial Incentives: Subsidies, tax exemptions, and low-interest loans for SAF producers would enhance economic feasibility.
- Infrastructure Development: Expanding bio-refineries and enhancing biomass collection networks will improve feedstock supply.
- Public-Private Partnerships: Collaboration between oil companies, airlines, and research institutions can accelerate SAF innovation.
- International Cooperation: Aligning with global sustainability frameworks will ensure India’s SAF initiatives meet international standards.
Sustainable aviation fuel presents a crucial opportunity for India to decarbonise its aviation sector and align with global climate goals. While challenges remain, strategic investments, policy support, and technological advancements can position India as a leader in SAF production. With a clear roadmap, India can transition toward a greener aviation industry, ensuring sustainable growth for decades to come.
