The report presents a strategic perspective on the emergence of Sustainable Aviation Fuel (SAF) as a critical enabler of India’s aviation growth, energy security, and decarbonisation ambitions. India’s aviation sector is witnessing rapid expansion, with passenger traffic expected to grow steadily and position the country among the largest aviation markets globally.
However, this growth is accompanied by increasing dependence on imported crude oil for aviation turbine fuel (ATF), exposing the sector to global price volatility, geopolitical risks, and supply chain disruptions. At the same time, evolving international carbon regulations and SAF mandates are reshaping the economics of global aviation, creating urgency for India to develop a domestic, scalable aviation fuel alternative.
It highlights the convergence of two structural forces, that is, energy security and decarbonisation, which is elevating SAF from a sustainability initiative to a strategic fuel pathway for the aviation sector. Globally, SAF is gaining prominence due to its ability to reduce lifecycle emissions by up to 60–90 per cent while functioning as a drop-in fuel compatible with existing aircraft and infrastructure. For India, this transition presents a unique opportunity to leverage its agricultural base, biofuel ecosystem, refining capacity, and growing aviation demand to build a domestically anchored SAF ecosystem.
A key theme of the report is the need to move beyond a blending-focused approach and develop a fully integrated SAF ecosystem. It outlines that the future of aviation fuel will be shaped by four structural pillars: feedstock resilience, multi-pathway production capability, integrated industrial clusters, and robust logistics and storage infrastructure. The report identifies viable SAF production pathways, such as Hydroprocessed Esters and Fatty Acids (HEFA) and Alcohol-to-Jet (ATJ), as critical enablers for early deployment, while also emphasising the importance of advanced pathways like Fischer–Tropsch (FT) and Power-to-Liquids (PtL) for long-term scalability.
The report further presents a phased roadmap for India’s SAF transition, structured across three stages: foundation (creating policy certainty and investment confidence), scale-up (building industrial capacity and integrated infrastructure), and export play (positioning India within global SAF supply chains). It underscores that early blending mandates, while important for compliance and market development, are only the starting point. Achieving meaningful energy security and reducing crude oil dependence will require large-scale deployment and ecosystem-wide alignment across airlines, refiners, fuel producers, airports, logistics providers, and policymakers.
