india-to-produce-8-10m-tonnes-of-saf-by-2040-deloitte

India has the potential to produce between 8 and 10 million tonnes of sustainable aviation fuel (SAF) by 2040, requiring an investment of $70-85 billion, according to a report by consultancy Deloitte India.

 

The report, released on Tuesday, highlighted that the expected SAF production would surpass the country’s domestic demand of 4.5 million tonnes, which will be necessary to meet a 15 per cent blending mandate for flights by 2040. India could also emerge as a leading exporter of SAF, supplying global markets.

 

The investment of Rs 6-7 lakh crore ($70-85 billion) is projected to drive the aviation sector's decarbonisation, cutting carbon emissions by 20-25 million tonnes annually. 

 

As one of the fastest-growing civil aviation markets in the world, India’s efforts to reduce carbon emissions are well underway, the report said.

 

 The capital investment could also generate between 1.1 and 1.4 million jobs across the supply chain and lower the country’s crude oil import bill by $5-7 billion per year.

 

The report further stated that SAF production could boost farmers' incomes by 10-15 per cent, as agricultural residue will be used as feedstock, offering an alternative to burning crop waste.

 

India’s surplus of 230 million tonnes of agricultural residue is expected to play a crucial role in SAF production, particularly in the Alcohol-to-Jet (AtJ) technology pathway using second-generation ethanol (2G) from non-food feedstocks.

 

The AtJ route can also be supported initially with ethanol (1G) from sugar and grain until advanced technology is fully developed, the report said.

 

Additional feedstocks like municipal solid waste, used cooking oil, sweet sorghum, seaweed, and industrial waste could also contribute to SAF production as technology advances.'

 

Prashanth Nutula, a partner at Deloitte India, noted that SAF production is becoming a global reality, with India positioned to play a significant role.

 

Currently holding a 2-3 per cent share in the global aviation fuel market, India benefits from its proximity to airline hubs in the Middle East and Europe, along with competitive cost structures, making it well-placed to meet the rising global demand for SAF.