top of page

Flying Towards a Greener Future: India's Sustainable Aviation Fuels Journey

Author Name

Dhairya Gandhi

Date Published

11 July 2025

India's aviation sector is rapidly expanding, ranking as the world's third-largest market. This growth, however, comes with a significant environmental cost, as aviation, if considered a country, would be among the top 10 greenhouse gas (GHG) emitting nations globally. GHG emissions from India's aviation sector significantly increased between 2005 and 2018, with projections indicating a substantial surge by 2050. Decarbonizing this sector is crucial for India to achieve its 2070 net-zero target.


India's Aviation Sector GHG Emissions Growth (Million tonnes CO₂e)


Source: GHG Platform India, UNFCCC BUR-4
Source: GHG Platform India, UNFCCC BUR-4

Sustainable Aviation Fuels (SAF): The Path Forward

Given the early stages and limitations of electric or hydrogen-powered flights for long-haul journeys, Sustainable Aviation Fuels(SAF) are a vital solution for reducing aviation's carbon footprint until at least 2050.


What is SAF?

SAF is chemically similar to conventional Aviation Turbine Fuel (ATF) but is produced from sustainable sources such as used cooking oil, animal fats, municipal solid waste, agricultural residues, or through "Power-to-Liquid" (PtL) processes.


Significant Impact: SAF can reduce tail-pipe CO2emissions by up to 100% and life-cycle emissions by up to 65%. Existing aircraft can already use a 50% SAF blend with ATF, and hundreds of thousands of commercial flights worldwide have successfully utilized SAF


India's Commitment and Progress


India is actively pursuing SAF integration, with strong engagement across government, industry, and research.


Policy Initiatives: NITI Aayog has proposed reducing GST on SAF to 5%. The Ministry of Petroleum and Natural Gas (MoPNG)has formed a Bio-ATF development committee. The National Biofuels Coordination Committee suggests SAF blending targets, with the government planning to issue mandates for up to a 1% SAF/SMF blend. India has also joined the ICAO’s ACT-SAF program


Flight Trials and Production: India has witnessed several SAF flight trials:


SpiceJet conducted India's first biofuel flight in 2018 using a 25% jatropha-based blend.


AirAsia India operated a domestic flight with Indian-made SAF.


IndiGo completed an international ferry flight with a 10% SAF blend.


Vistara flew a 30% SAF blended ferry flight from Seattle to Delhi in March 2023.


Indian Oil Corporation Ltd. (IOCL) is a major player, planning a plant at Panipat Refinery and partnering with Praj Industries.


Mangalore Refinery and Petrochemicals Ltd. (MRPL) is also developing a bio-ATF pilot plant using CSIR-Indian Institute of Petroleum's technology.


◦ The CSIR-Indian Institute of Petroleum (CSIR-IIP) operates a pilot plant with 3,200 tones annual capacity.


Feedstock and Jobs: India possesses sufficient feedstock (like crop residue, of which 140 million tones are burned annually)to meet SAF demand for its entire aviation sector until 2030. The SAF industry is expected to create around 100,000 job opportunities by 2030. An estimated INR 37 billion investment will be needed for a 1.2% SAF blend by 2030.


India's SAF Feedstock Potential vs Demand (Million tones by 2030)


Source: CSTEP SAFARI Report, GIZ SAF Stakeholder Mapping
Source: CSTEP SAFARI Report, GIZ SAF Stakeholder Mapping

Employment Potential in India’s SAF Industry


Source: CSTEP SAFARI Report
Source: CSTEP SAFARI Report

Challenges and the Way Forward:


High Costs: SAF is currently more expensive than conventional ATF. While some corporate frequent fliers show willingness to pay up to 10% more for SAF freight, cost is still a barrier for widespread adoption.


Policy Gaps: A clear government policy or road map for SAF is still needed to encourage investment and industrial scale-up.


Supply Chain: Robust mechanisms for raw material collection and supply are lacking. Current production capacity needs to increase over 100 times to meet a 1.2% blending target by 2030.


To address these, India needs a comprehensive strategy:


Holistic Policy Framework: Collaboration among ministries (Civil Aviation, New and Renewable Energy, Environment) is vital fora unified net-zero aviation pathway.


Mandated Blending Targets: Clear mandates will create demand and incentivize mass production.


Financial Incentives: A carbon tax, carbon pricing mechanisms, or mandating airlines to invest a percentage of profits into SAFR&D could help.


Public-Private Partnerships (PPP): Strategic PPP’s are essential to consolidate the entire SAF value chain. Encouraging private investment, potentially through CSR initiatives, is also important.


Capacity Building & Awareness: Training for policymakers and public awareness campaigns are crucial for broader adoption and acceptance.


Conclusion: India’s Green Aviation Journey


India has the resources and ambition to lead the transition to Sustainable Aviation Fuels. By bridging policy gaps, scaling production, and fostering industry collaboration, the country can decarbonize its growing aviation sector. With focused efforts, India can chart a sustainable flight path and contribute meaningfully to global climate goals.



bottom of page