With its ambitious targets and proactive approach, India is poised to become a leader in the production and adoption of sustainable aviation fuel (SAF), a senior official of the International Civil Aviation Organization (ICAO) official told businessline.
The international organisation has been entrusted to facilitate the reduction in carbon emissions from international civil aviation.
Speaking to businessline, Cesar Velarde, ICAO’s ACT-SAF Project Coordinator, said that India is among the top five countries globally in promoting SAF.
Velarde, was in India to conduct a feasibility study to determine the potential of SAF production and usage in the country.
In technical parlance, SAF is renewable or waste-derived aviation fuel that meets sustainability criteria. Technical analysis has shown that SAF has the potential to reduce CO2 emissions from the aviation industry.
Besides, the fuel type plays a key role in
Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA).
This scheme is implemented in three phases, out of which participation is voluntary in the first two phases (2021-2026).
India has decided not to participate in the voluntary phases of CORSIA. The offsetting requirements under the CORSIA for Indian careers will start from 2027.
The scheme is applicable to international flights originating from one country to another.
Global leader
“India has all the elements to become a global leader in SAF production, such as a well established fuel industry consisting of suppliers, producers and refiners. All of these can contribute knowledge that will support the future of the SAF industry,” Velarde told businessline.
“There are many important national level industry stakeholders that are already interested in investing in SAF production.”
Furthermore, he cited that India has established ambitious targets for self supply, and “that’s a clear indicator of the leadership of India.”
“I would place India among the top players in developing SAF around the world.”
Centre plans to implement the scheme with indicative targets of one per cent of SAF blend in aviation turbine fuel from 2027, going up to two per cent in 2028, and five per cent by 2030.
On the price viability, the higher cost of sustainable fuel as compared to the traditional propellant Velarde pointed out that global SAF supply will eventually reduce this distortion.
“The expectation is that with the implementation of SAF policies around the world, supply will increase and that will reduce the price gap,” he said.
“Besides, the advent of newer technologies will speed up SAF capacities to develop around the world, thereby reducing the price cap. It will become more competitive.”
Even though the cost of SAF production is declining, currently it is almost three to five times the price of fossil jet fuel. The lack of infrastructure and ecosystem is adding to the cost of SAF.
Moreover, establishing SAF production facilities requires substantial upfront investment.
Access to financing, especially in the early stages of development, is now regarded as a major barrier.
In addition, Velarde said that SAF feedstock such as agricultural waste will add value as an element in the circular economy and by reducing greenhouse carbon emissions from the aviation sector.
It is estimated that every year, around 500 million tons of agricultural residues are produced in India and around 100 million tons of these residues are burnt on the field causing widespread pollution.
On its part, the domestic industry, including oil refiners, are putting in effort to meet the CORSIA deadline not only for India-based airlines but also for export purposes.
The emerging sector has seen interest from Indian Oil, LanzaJet, Praj Industries and Mangalore Refinery and Petrochemicals among others.