Boeing calls for policy mix to boost sustainable fuel production

A government mandate to blend a certain level of sustainable aviation fuel (SAF) with aviation turbine fuel (ATF) might not work in isolation, and a combination of policies is needed in India to incentivise SAF production and consumption, Brian Moran, chief sustainability officer at The Boeing Company, told Business Standard on Thursday.

 

In November 2023, the National Biofuels Coordination Committee (NBCC), led by Union Petroleum Minister Hardeep Singh Puri, established “indicative” targets for blending SAF in ATF.

 

According to the committee, at least 1 per cent SAF should be mixed into ATF by 2027, initially for international flights only. Subsequently, by 2028, this percentage is proposed to increase to 2 per cent.

 

Moran said that Boeing does not plan to invest financially in any SAF production plants in the country but will instead focus on supporting the SAF ecosystem, including assisting the Indian government in identifying the right policy measures to boost SAF production.

 

SAF is a cleaner fuel made from sources such as plants, waste, or used cooking oil, reducing carbon emissions. It functions like ATF, but ATF is derived from crude oil and emits more pollution.

 

In June 2023, the Indian Oil Corporation (IndianOil) announced a collaboration with LanzaJet to establish a SAF production facility in Haryana. In January last year, Julien Manhes, head of SAF at Airbus, told the newspaper that the European planemaker was willing to invest in India to accelerate SAF production if the right opportunity arose. Airbus competes with Boeing in the commercial aviation market.

 

When asked if Boeing has any financial investment plans to boost SAF production, Moran replied on Thursday: “Our money is better used developing new airplanes. The kind of money that we are talking about here (for setting up SAF plants, etc.), there are infrastructure funds and banks that specialise in it. That would not be our first choice. We have different things to offer. We are not going to be investing financially in these projects.”

 

He said that oil companies such as Praj Industries and IndianOil see an opportunity to engage with the SAF marketplace because aviation is a growing business, and there is an increasing need for SAF. “They realise that, but they need some supportive policy around them for this to make sense financially... That is where Boeing can help these companies, as we have front-row seats with regulators to see what types of policies are being put in place to incentivise and scale up SAF production,” he added.

 

He said that the current requirement of 1 or 2 per cent blending in India is not a hard law but rather indicative and very small. “It is a good start because it begins the process of talking about SAF in India, but it does not compare to what other countries are doing (where there are clear mandates),” he added. However, this could prove beneficial because India can now analyse the impact of SAF policies worldwide and choose the best ones for itself.

 

“There are some policies that have been tried in different countries that may or may not be working yet. India is in a really good position because it can observe and cherry-pick the best policies, tailoring them to its realities. As Boeing, we want to be part of that consultation process, bringing ideas, data, and facts,” he observed.

 

When asked if the Indian government should also specify a mandate regarding SAF blending, he replied: “It is hard to say that in isolation. An energy company may want that. But without other incentives that come with it, it would be like shooting yourself in the foot to mandate something but not have the infrastructure or the policy regime to make it a reality... I would never tell India what to do, but I think a combination of policies is the right way to go.”

 

He said there should be an incentive to “produce and offtake SAF to reduce the green premium”.

 

“What exact form that incentive takes — whether at the level of production or final consumption — is really up to the government to decide,” he added.