India is strategically positioned to become a major exporter of Sustainable Aviation Fuel (SAF), according to Civil Aviation Minister K. Ram Mohan Naidu. The Minister highlighted India's inherent advantages, including its geographical location and the abundant availability of raw materials, which could enable the country to surpass domestic demand and emerge as a key player in the global SAF market.
To realize this vision, India is actively developing a comprehensive policy to encourage both the production and utilization of SAF. SAF, derived from renewable sources and waste, is considered a critical component in the transition towards greener aviation. The upcoming SAF policy will integrate findings from a feasibility study conducted by the Directorate General of Civil Aviation (DGCA), with support from the International Civil Aviation Organization (ICAO). This study identifies practical pathways for SAF production and deployment in India, aligning with global sustainability standards under the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA).
India possesses over 750 million metric tonnes of biomass and approximately 230 million metric tonnes of surplus farm residue, presenting a significant opportunity for SAF production. Minister Naidu emphasized that the SAF industry has the potential to generate 1.1 to 1.4 million jobs across the value chain, reduce India's crude oil import bill by $5–7 billion annually, and increase farmers' income by 10–15% through the utilization of crop residue.
The government has already set phased blending targets. These include 1% of total fuel for international flights by 2027, 2% by 2028, and 5% by 2030. Indian Oil's Panipat refinery has been certified as the country's first SAF producer, with production expected to commence by the end of the year.
India's aviation sector is experiencing rapid growth, with passenger numbers projected to double by 2030. This growth is expected to increase aviation turbine fuel demand to 15-16 million tonnes by 2030 and nearly double by 2040. SAF is crucial to balancing aviation growth with emissions reduction, offering a potential lifecycle emission reduction of up to 80%.
While SAF is currently more expensive than conventional jet fuel, Minister Naidu noted that increasing production is essential to reduce costs. Despite the pricing challenges, strong demand within India, driven by the fast-growing aviation sector, and the country's refining capacity, which allows it to export half of its aviation turbine fuel production, position SAF as a key element in meeting India's future fuel needs.
Furthermore, India is making strides in other green aviation initiatives. Currently, 88 airports operate entirely on renewable energy, Bengaluru airport holds the world's highest carbon accreditation, and airports in Delhi, Mumbai, and Hyderabad are carbon neutral. The country is also investing in green hydrogen.
