India has the potential to produce 8-10 million tonnes of Sustainable Aviation Fuel (SAF) by 2040, requiring investments of USD 70-85 billion to achieve this target, according to a new report.
Released on Tuesday by consultancy firm Deloitte India, the report estimates that the country’s SAF production could surpass the domestic demand of 4.5 million tonnes needed to meet a 15% blending mandate for all flights by 2040. This would also position India as a leading exporter of SAF to global markets.
The report highlights that investments of Rs 6-7 lakh crore (USD 70-85 billion) would be necessary to achieve the projected SAF production capacity. This would contribute significantly to decarbonizing the aviation sector, reducing carbon emissions by 20-25 million tonnes annually.
As one of the fastest-growing aviation markets in the world, India is actively working on decarbonization efforts in the sector. The report further notes that this large-scale SAF production could create 1.1-1.4 million jobs across the entire value chain and reduce the country’s crude oil import bill.
SAF production could also increase farmers’ incomes by 10-15% by utilizing agricultural residue as feedstock, providing a sustainable alternative to burning crop waste. India’s estimated surplus of 230 million tonnes of agricultural residue will be crucial for SAF production, serving as a key feedstock for second-generation ethanol (2G) production, a critical component in the Alcohol-to-Jet (AtJ) technology for SAF manufacturing.
The report also points out that Municipal Solid Waste (MSW) and Used Cooking Oil (UCO) will contribute to SAF production, and alternative feedstocks such as sweet sorghum, seaweed, and industrial waste can further enhance SAF potential as technology advances.
India stands at a pivotal juncture in the journey towards the adoption of SAF. The country has set indicative SAF blending targets for international flights – 1 percent by 2027 and 2 percent by 2028. However, there are no mandates for domestic flights yet.
Globally, countries are taking ambitious blending mandates. For example, the European Union (EU) has laid a detailed roadmap until 2050 for using bio-SAF and synthetic SAF. Additionally, the EU’s regulations also specify feedstock acceptable for SAF production. These regulations are more stringent than the International Civil Aviation Organization (ICAO) guidelines. For example, while ICAO allows agriculture crops as feedstock for SAF,
the EU mandates only using feedstocks that are not being diverted from the food value chain.
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