Govt to soon launch sustainable aviation fuel policy: Aviation Minister

It can reduce carbon dioxide emissions by up to 80% compared to conventional ATF, he says

India will soon unveil a policy on sustainable aviation fuel (SAF) to help transition toward greener flying, with final consultations and a study by the International Civil Aviation Organisation (ICAO) nearing completion, said Civil Aviation Minister Kinjarapu Ram Mohan Naidu on Thursday.

 

“What we need right now is a strong and robust policy. I can happily say that the ministry is working on the SAF policy and we would be engaging with the necessary stakeholders. We would very soon be launching the SAF policy so that the global industry knows what India is trying to do in this area,” Naidu said at the India SAF Summit organised by industry body FICCI.

 

The minister added that Indian Oil’s Panipat refinery has begun certified SAF production, calling it a sign of “significant strides”. With abundant local feedstock and refining capacity, India is uniquely positioned to emerge as a global SAF hub.

 

He noted that aviation turbine fuel (ATF) consumption is projected to rise from 15-16 million tonnes by 2030 to 30-31 million tonnes by 2040, making SAF essential for meeting the sector’s carbon goals. “SAF has the potential to reduce carbon dioxide emissions by up to 80 per cent compared to conventional ATF.”

 

A report FICCI and KPMG released at the summit said India’s SAF ambitions rest on a strong feedstock advantage, including 680 million tonnes (MT) of annual agricultural residue, 3.4 MT of used cooking oil, and ethanol capacity exceeding 1,800 crore litres. Although current SAF production is modest at about 35,000 tonnes annually (FY 2025-26), India’s 163 operational airports and established ATF supply chain provide a ready logistical backbone for blending, transport and storage.

 

According to the report, to meet the Carbon Offsetting and Reduction Scheme for International Aviation targets — which have been set by United Nations body ICAO — India will need to produce 53 million litres of SAF by 2027 for a 1 per cent blend in international flights, and 290 million litres by 2030 for a 5 per cent blend in international flights.

 

Overall, domestic and international operations in India together will require about 130 million litres by 2027 and 720 million litres by 2030.

 

The study also noted that global SAF production has doubled from 600 million litres in 2023 to 1.3 billion litres in 2024 and is expected to double again to 2.7 billion litres next year, though it still accounts for only 0.3 per cent of global jet fuel use.

 

The report highlighted that Hydroprocessed Esters and Fatty Acids technology currently accounts for nearly 95 per cent of global SAF output, while cost remains a challenge, with SAF prices ranging between two and five times that of conventional jet fuel.

 

Faiz Ahmed Kidwai, director general of Civil Aviation, said decarbonisation of the aviation sector must be a shared global effort. “Our ambition is to achieve a 5 per cent SAF blending target by 2030, which is not just a goal but a declaration of intent to lead by example," he noted.