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SAF Blending Kicks Off: India's Green Aviation Leap
24 May
Summary
- India aims for 1% SAF blend in international flights by 2027.
- SAF is currently 3-5 times more expensive than traditional jet fuel.
- Aviation fuel costs may rise slightly, estimated at ₹100-200 per ticket.
India has set an ambitious target to blend 1% Sustainable Aviation Fuel (SAF) into jet fuel for international flights starting January 2027. This mandate is scheduled to increase to 2% in 2028 and 5% by 2030, signaling a significant shift towards greener aviation practices.
State-owned oil marketing companies are actively pursuing SAF production, with Indian Oil Corporation anticipating production from its Panipat refinery by September. Bharat Petroleum Corporation Ltd and Hindustan Petroleum Corporation Limited are also advancing their initiatives, with coprocessing facilities and production certifications expected soon.
Currently, SAF is priced three to five times higher than conventional aviation turbine fuel. To bridge this cost gap and encourage airlines to adopt SAF, oil companies are urging the government to provide fiscal incentives such as viability gap funding or tax rebates.
Despite the higher cost, the initial blending targets are not expected to drastically increase airfares. Experts estimate a modest rise of ₹100-200 per ticket, as only small quantities of SAF will be blended initially. The government plans to consult with airlines and oil companies to address all concerns regarding SAF adoption.
