India Set to Lead Global Sustainable Aviation Fuel Exports

India is making strides to be an important player in sustainable aviation fuel (SAF) and has the potential to be a significant SAF exporter because it has abundant, low-carbon ethanol.

According to Sameer Sinha, CEO (Sugar Business) at Triveni Engineering and Industries Ltd, India has an advantage over its competitors, including Brazil, due to the lower carbon intensity of sugarcane-based ethanol. Triveni is one of India’s largest ethanol producers, producing about 23-24 crore litres of ethanol annually. In addition, it is one of only a handful of companies exploring the production of SAF, although there are no formal plans to develop SAF at this time.

India also currently has a large ethanol surplus because of the production capacity built for E30-E35 blending targets. However, Indian petroleum companies are currently only using E20 and therefore have a significant amount of ethanol available as feedstock for SAF production in the short term.

Furthermore, with 50-60 crore litres of projected SAF demand for international flights over the next five years, this results in a total requirement of 120 crore litres of ethanol to satisfy this demand for SAF.

India's Ethanol Advantages And SAF Timeline

With the reduction of carbon emissions, India's ethanol has a significant advantage over Brazil's ethanol in terms of carbon intensity, making it a candidate for reduced emissions from SAF production. Indian sugarcane ethanol has lower levels of carbon emissions than US corn-based SAF and imported Brazilian ethanol.

As a result, India is favourably positioned according to global standards such as the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA), thanks to the lower lifecycle carbon intensity of sugarcane ethanol and the available surplus feedstock, while Used Cooking Oil (UCO) lacks the availability and scalability required to support long-term, large-scale SAF production beyond initial targets.

The initial SAF plants converting alcohol to jet fuel could begin production by 2029 if policies provide clarity before the end of the fiscal year. A SAF facility with a capacity of 80 tonnes per day would require a capital investment of approximately ₹1,400 crore and an ethanol supply of about 200 tonnes per day.

The 2024-25 Ethanol Supply Year has a total volume of 1,048 crore litres committed by Oil Marketing Companies, with 330 crore litres allocated for other uses, indicating a surplus of over 450 crore litres available for alternative uses such as SAF production. Future yields have the potential to increase output, as the average global sugarcane yield is expected to rise from 75 to 85 tonnes per hectare, while maize yields could grow from 3.4–3.5 tonnes to 6–7 tonnes per hectare over the next decade.

Policy Needs and Broader Biofuel Push

In addition to SAF, Mr. Sinha is advocating for the use of flex-fuel vehicles (FFVs) with tax cuts on GST, road tax incentives, and dispensing the dual E20-E100 fuel, which will encourage people to adopt FFVs since Brazil has proven that this approach encourages growth in FFV usage.

There is also increasing potential for ethanol-diesel blending, which has been confirmed through testing, thereby creating opportunities for expanding the ecosystem surrounding ethanol and diesel blends. The sugar industry can sustainably supply around 500 crore litres of ethanol even when total demand reaches 900 crore litres, after accounting for potable and industrial uses. To support this growth, pricing adjustments are vital, ensuring that input costs are aligned with output prices.

According to Sinha, the Global Biofuels Alliance presents an opportunity for India's leaders to take charge, and using ethanol to make jet fuel becomes more viable once blending mandates reach 5% by 2030, given limited access to UCO sources. The technology used to produce jet fuel from ethanol and UCO was first commercialised in Atlanta and provides farmers in rural areas with new income streams as well as environmental benefits, making India’s ethanol-to-SAF pathway a key differentiator in the global market.

With an aligned policy vision, India's surplus of ethanol and low-carbon emissions profile can make it an emerging player in the SAF market. But the question remains whether it will provide significant export opportunities to airport hubs where the jet fuel will be used while driving the economy of rural areas in India?

Sources:

The Week
Business Standard
Business Standard
Whalesbook
PitsNews