India is strategically positioned to become a global export hub for Sustainable Aviation Fuel (SAF), capitalizing on its surplus ethanol production and lower carbon intensity compared to competitors like Brazil, according to Sameer Sinha, CEO (Sugar Business) of Triveni Engineering and Industries Ltd. In an interview with PTI, Sinha highlighted India's competitive advantages in the burgeoning SAF market. He anticipates that the earliest alcohol-to-jet SAF plants could be operational by 2029, assuming policy clarity is established by the end of the current financial year. Until then, India will depend on limited SAF production from used cooking oil for a small percentage of blending, around 1-2%.
Triveni Engineering, a major integrated sugar and ethanol manufacturer in India, is among the companies exploring SAF production facilities, although formal board proposals are still pending. The company currently produces approximately 23-24 crore litres of ethanol annually, making it one of India's largest producers. Triveni Engineering has been actively focusing on expanding its ethanol production capacity.
Sinha emphasized India's significant ethanol surplus as a key strength. With ethanol production capacity already in place to support E30-E35 blending targets, but current usage at E20, there is ample feedstock available for alternative applications like SAF. He stated that India has the capacity to support E30-E35 ethanol supply, which means the country is in an oversupply situation. To achieve the 20 percent blending target by 2025, an estimated 1700 crore liters of ethanol-producing capacity is necessary.
Furthermore, Indian sugarcane-derived ethanol boasts lower carbon intensity than Brazilian ethanol, enhancing its appeal in the global SAF market. Sinha explained that if India's carbon intensity number is lower than Brazil's, the pollution reduction is far larger when using Indian ethanol versus Brazilian ethanol. He also noted that the US will largely rely on maize-driven SAF unless it imports Brazilian 2G ethanol, which may have higher carbon emissions.
Sinha envisions India exporting SAF from its East Coast to Southeast Asian countries, where Singapore is a major aviation hub, and from its West Coast to countries like Dubai. With potential SAF plants operational by 2029, India aims to supply Southeast Asia and the Middle East, capitalizing on its competitive advantages in ethanol production. This strategic advantage, combined with proactive government policies, could establish India as a prominent player in the global SAF landscape. The concerted Government push towards the production and blending of fuel ethanol with petrol presents new opportunities for the Indian sugar industry, promoting diversification and reducing reliance on imported crude oil.
