India stands poised to emerge as a significant player in the sustainable aviation fuel (SAF) sector, with the potential to generate between 8 to 10 million tonnes of SAF by 2040, according to a comprehensive report by Deloitte India. This ambitious target not only reflects the country’s commitment to sustainable practices in aviation but also positions India as a potential major exporter of SAF to global markets. The report highlights the need for substantial investments, estimated between $70 billion and $85 billion (Rs 6-7 lakh crore), to achieve this production level and meet the growing demands of the aviation industry.
Currently, India’s domestic demand for SAF is projected at around 4.5 million tonnes, driven by a 15% blending mandate for all flights by 2040. This blending requirement is part of India’s broader strategy to reduce carbon emissions and promote sustainable practices within its aviation sector. The ability to produce SAF that exceeds domestic requirements not only demonstrates India’s capability but also its ambition to contribute to global efforts aimed at decarbonizing the aviation industry.
The investments required to ramp up SAF production are expected to yield significant benefits for India’s aviation sector and the economy at large. By transitioning to sustainable fuels, the aviation industry can expect a reduction in carbon emissions by an estimated 20 to 25 million tonnes annually. This shift aligns with global trends toward sustainable energy solutions and will help India meet its climate goals.
Additionally, the development of the SAF sector is projected to create between 1.1 to 1.4 million jobs across the SAF value chain. These jobs will span various sectors, including research and development, production, distribution, and regulatory compliance, thereby contributing to the country’s economic growth and employment generation.
Furthermore, increased production of SAF will play a crucial role in reducing India’s reliance on imported crude oil. The report estimates that the shift to SAF could lower the country’s crude oil import bill by approximately $5.7 billion annually, further enhancing energy security and reducing vulnerability to fluctuations in global oil prices.
The establishment of a robust SAF industry in India will require collaborative efforts from government agencies, private sector players, and research institutions. This multi-stakeholder approach is vital for fostering innovation, ensuring regulatory support, and creating the necessary infrastructure for SAF production and distribution. Moreover, as the global aviation sector increasingly prioritizes sustainability, India’s advancements in SAF could serve as a model for other countries looking to enhance their own sustainable aviation initiatives.
In summary, India’s potential to generate 8 to 10 million tonnes of sustainable aviation fuel by 2040 presents a transformative opportunity for the aviation sector and the broader economy. With the necessary investments and strategic collaborations, India can position itself as a leader in sustainable aviation, contributing to global emissions reduction efforts while fostering economic growth and job creation. The development of the SAF sector aligns with India’s commitment to sustainability, ensuring a greener future for aviation and setting a precedent for responsible energy practices in the region.