India’s SAF Moment: Why the Next 24 Months Will Decide Asia’s Green Aviation Hub

India is going to host the second Sustainable Aviation Fuel Conclave in New Delhi on September 28, according to the Millenniumpost. The event is aiming to bridge the gap between the industry experts, government and non-government stakeholders to discuss expanding SAF production domestically and globally.

With the International Civil Aviation Organization’s (ICAO) Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) required phase beginning in 2027, Sustainable Aviation Fuel (SAF) is no longer a simple sustainability metric. India stands at an important juncture; the decisions it makes today will determine whether the nation becomes a SAF exporter or a passive, price-taking importer.

What is SAF?

Aviation contributes about two to three percent of the total global emissions. Sustainable Aviation Fuels are made from renewable resources that can substitute kerosene. Long-haul flights cannot be easily electrified using current battery technologies, so SAF has emerged as the decarbonisation pathway for the industry. 

Regulatory pressure across the world is becoming more stringent and will continue to worsen over time. The International Civil Aviation Organization (ICAO) set a net-zero aviation target for 2050. Mandatory blending mandates, such as the EU’s ReFuelEU and similar regulations globally, are requiring airlines to up SAF percentages in jet fuel. Beginning January 1, 2027, this will put international carriers under compliance pressure.

India’s Structural Advantage

India is among the largest producers of agricultural waste, used cooking oil and sugarcane, which leads to the production of hundreds of millions of tonnes of organic residue annually. According to estimates made by Boeing, alcohol-to-jet and hydroprocessed ester and fatty acid production pathways in India could generate 8 to 10 million tonnes of SAF per year. This can provide a low-cost baseline for SAF conversions.

In order to benefit from this, New Delhi needs to step up its efforts to be counted in this first mover race. The US, Brazil and Indonesia have already gained billions in private and public capital for SAF producers. Countries and companies building infrastructure are now set to capture decades of market share, long-term airline contracts, and export revenue. Once global airlines sign supply contracts with early movers, those who come after will face a commoditised space with lower return margins.

What does the future hold?

India offers SAF manufacturers a guaranteed local volume as one of the fastest-growing civil aviation markets in the world. When paired with the nation's current refining infrastructure and growing bioethanol ecosystem, India has the technical capacity to become the Asia Pacific hub for green jet fuels. The upcoming India's SAF conference will provide the first step in this direction by bringing together policymakers, fuel manufacturers, and airlines.