India poised to become global leader in sustainable aviation fuel: Report

New Delhi, Nov 6 India's aviation market, the fifth-largest globally, is projected to become the third by 2030, and set to emerge as a global leader in Sustainable Aviation Fuel (SAF) production, a report said on Thursday.

A report from the Federation of Indian Chambers of Commerce & Industry (FICCI) and KPMG said that with over 680 MMT of agricultural residue, 3.4 MMT of used cooking oil, and ethanol capacity exceeding 1,800 crore litres, India has the raw materials to scale SAF production

The report presents a strategic road map, highlighting the country's preparedness to scale SAF production, enhance rural incomes, boost greener fuel alternatives, and access international export markets.

SAF can reduce lifecycle emissions by up to 80 per cent, making it the most immediate and scalable decarbonisation lever for aviation, it said.

Further, the report mentioned the government-mandated blending targets of 1 per cent by 2027, 2 per cent by 2028 and 5 per cent by 2030.

The report emphasised the economic and ecological advantages, such as decreased fuel imports saving billions, job creation in green sectors, and enhanced income for rural communities.

India is well-positioned to supply SAF to premium markets like the EU, Japan, Singapore, and the Middle East, it added.

Anish De, Global Head, Energy Natural Resources & Chemicals, KPMG in India, emphasised the need for a coordinated systems approach that aligns policy, finance, technology, and offtake commitments.

“India’s SAF journey will be built on the intelligent use of our abundant feedstock base - from agricultural residues and municipal solid waste to press-mud and used cooking oil,” said Vivek Rahi, Partner and National Head - Oil & Gas, KPMG in India.

The key to success will be establishing viable supply chains and long-term offtake frameworks involving airlines, OMCs, and technology providers, he added.

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