India targets 5% Sustainable Aviation Fuel blending by 2030

India is preparing to introduce phased blending of Sustainable Aviation Fuel (SAF) in aviation turbine fuel as part of a broader strategy to reduce aviation emissions and align with global carbon reduction commitments.

The Union Government has prepared a roadmap targeting 1 per cent SAF blending from January 2027, increasing to 2 per cent in 2028 and reaching 5 per cent by 2030. The initial implementation focus will be on international flight operations.

The proposed targets come as India accelerates efforts to build a domestic SAF ecosystem spanning fuel production, refining infrastructure and regulatory frameworks for low-carbon aviation fuels.

SAF recognised for aircraft operations

India formally recognised SAF for aircraft use through a gazette notification issued on 23 April 2026. The notification amended Aviation Turbine Fuel regulations to permit blending of sustainable aviation fuel with conventional fossil-based jet fuel.

SAF is considered a lower-carbon alternative to traditional aviation fuel and can be produced using multiple non-fossil feedstocks, including:

• Used cooking oil
• Alcohol-to-jet feedstock pathways
• Other renewable and waste-derived sources

The Ministry of Petroleum and Natural Gas and the Ministry of Civil Aviation have jointly prepared the roadmap in line with India’s obligations under the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA).

The mandatory implementation phase of CORSIA for international aviation begins in 2027.

Public sector refiners prepare production capacity

India’s state-run energy companies are preparing SAF production facilities ahead of the proposed blending rollout.

Key production developments include:

• Indian Oil Corporation plans to begin SAF production using used cooking oil at its Panipat refinery by September 2026
• Bharat Petroleum is commissioning a co-processing unit at its Mumbai refinery by the end of 2026
• Alcohol-to-jet technology routes are being evaluated for broader national adoption

Industry officials have stated that public sector refiners remain on track to meet projected SAF demand requirements over the coming years.

The government is also preparing a broader SAF policy framework expected to provide greater clarity around guaranteed fuel offtake arrangements and long-term investment support mechanisms for producers.

Demand projections signal rapid growth

India’s projected SAF demand is expected to rise steadily as blending targets increase.

Estimated demand figures include:

• 62,000 tonnes in 2027
• 130,000 tonnes in 2028
• Around 380,000 tonnes by 2030

The government has not yet notified a specific SAF blending policy for domestic aviation operations. Current targets remain indicative while authorities continue developing the broader regulatory framework for mandatory implementation.

Industry stakeholders view the roadmap as a significant step towards building long-term supply certainty for SAF production and investment.

Airlines likely to see moderate fare impact

According to current estimates, a 1 per cent SAF blending mandate could increase airfares by approximately Rs 100 to Rs 200 per ticket.

The aviation sector globally has been assessing SAF adoption as one of the primary pathways for reducing emissions from commercial air travel, particularly on long-haul routes where electrification remains commercially unviable.

Industry observers note that the success of India’s SAF programme will depend heavily on scaling domestic feedstock supply, refining infrastructure, certification systems and long-term pricing competitiveness.

As international aviation regulations tighten and airlines face increasing pressure to reduce emissions, India’s phased SAF roadmap is expected to play an increasingly important role in shaping the country’s aviation decarbonisation strategy over the next decade.