India’s journey towards decarbonizing its aviation sector is taking off with significant promise. According to Deloitte India’s recent report, “Green Wings: India’s Sustainable Aviation Fuel (SAF) Revolution in the Making,” the country is poised to produce 8-10 million tonnes of Sustainable Aviation Fuel (SAF) by 2040. Achieving this target will require a capital investment of US$ 70-85 billion, but the rewards—both environmentally and economically—are profound.
This progress positions India as a potential leader in the global SAF market, surpassing its domestic demand of 4.5 million tonnes under a 15% blending mandate for 2040. By 2040, India’s SAF production could potentially reduce carbon emissions by 20-25 million tonnes annually, making a significant contribution to global decarbonization goals. The adoption of SAF promises not only a greener aviation industry but also substantial socio-economic gains.
A Multi-Billion Dollar Opportunity for Economic Growth
The projected investment of US$ 71.48-83.39 billion (approximately Rs. 6-7 lakh crore) into SAF production is expected to generate far-reaching benefits. The creation of 1.1 to 1.4 million jobs across the SAF value chain will provide employment opportunities in various sectors, from manufacturing to logistics. This could be a game-changer for India’s rural economy, as SAF production utilizes agricultural residues as feedstock, providing farmers with a 10-15% boost in income. Additionally, reducing India’s dependence on imported crude oil could lower the country’s import bills by US$ 5-7 billion annually, contributing to energy security.
VURDHAAN: Leading the Way in Sustainable Aviation Solutions
At VURDHAAN, we recognize the transformative potential of SAF in driving sustainable growth within the aviation sector. As experts in CORSIA, EU ETS, UK ETS, and Sustainable Aviation Fuels, we actively support stakeholders in navigating this emerging landscape. Our holistic approach—Support, Educate, and Implement—ensures that airlines, fuel producers, and policy-makers can make the most of the evolving SAF opportunities. Through tailored training, strategic guidance, and hands-on implementation, VURDHAAN is committed to enabling a smoother transition towards sustainable aviation practices, aligning with India’s vision for a greener future.
The Power of Feedstock: A Focus on Agricultural Residues and Beyond
Deloitte’s report highlights India’s estimated surplus of 230 million tonnes of agricultural residue, which is critical for SAF production, particularly through the Alcohol-to-Jet (AtJ) technology pathway. This surplus, along with other feedstocks such as Municipal Solid Waste (MSW), used cooking oil (UCO), sweet sorghum, seaweed, and industrial waste, will drive the country’s capacity to scale SAF production as technologies mature. By utilizing these diverse resources, India can ensure a steady supply chain while promoting a circular economy that minimizes waste.
Collaborative Efforts for a Successful SAF Ecosystem
Achieving India’s SAF potential requires collaboration among various stakeholders. Deloitte’s report suggests forming Special Purpose Vehicles (SPVs) that include airlines, SAF manufacturers, Oil Marketing Companies (OMCs), Farmer Producer Organizations (FPOs), and technology providers to mitigate initial risks and drive progress. Additionally, financial incentives like Production Linked Incentives (PLI), tax breaks, and viability gap funding are crucial to attract early investments.
VURDHAAN’s expertise in building effective multi-stakeholder collaborations positions us as a reliable partner in advancing SAF adoption. By guiding organizations through complex regulatory landscapes and fostering strategic partnerships, we ensure that our clients are well-prepared to meet their sustainability targets and capitalize on emerging opportunities in the SAF market.
A Blueprint for Sustainable Economic Growth
As Mr. Viral Thakker, Partner and Sustainability and Climate Leader at Deloitte South Asia, emphasizes, “By empowering farmers and reducing carbon emissions, SAF offers a blueprint for sustainable economic growth.” This sentiment underscores the broader impact of India’s SAF journey—not only in reducing emissions but also in uplifting rural livelihoods and supporting economic resilience.
With its strategic focus and vast agricultural resources, India has the potential to set a global example in SAF production. This transition is not just about meeting blending mandates; it’s about creating a sustainable, long-term pathway for economic and environmental growth.
VURDHAAN: Partnering for a Greener Tomorrow
As the aviation industry moves towards a more sustainable future, VURDHAAN is here to support, educate, and implement strategies that drive progress. Our expertise in Sustainable Aviation Fuels, coupled with our deep understanding of international and regional regulations like CORSIA and EU ETS, enables us to offer end-to-end solutions for organizations aiming to make a positive impact. Join us in transforming the aviation sector for a greener, more sustainable tomorrow.
Conclusion
India’s journey towards sustainable aviation fuel production represents a remarkable opportunity to reshape the country’s energy and economic landscape. With the right investments, policy support, and stakeholder collaboration, India is on track to become a global leader in SAF production, driving both environmental and socio-economic benefits. VURDHAAN stands ready to guide stakeholders through this transformative phase, ensuring that together, we can build a cleaner, greener future for aviation.