Thu Oct 10 17:30:50 UTC 2024: ## India Aims for Sustainable Aviation Fuel Dominance with $85 Billion Investment

**New Delhi, India** – A new report by Deloitte India forecasts that India could become a major player in the global Sustainable Aviation Fuel (SAF) market, with the potential to produce 8-10 million tonnes of SAF by 2040. This ambitious goal would require a substantial investment of USD 70-85 billion, but could significantly decarbonize the aviation sector and create millions of jobs.

The report highlights that India’s SAF production could exceed domestic demand, which is estimated to reach 4.5 million tonnes by 2040, under a proposed 15% blending mandate for all flights. This surplus would position India as a key exporter of SAF to global markets.

Investing in SAF production would not only reduce carbon emissions by 20-25 million tonnes annually, but also contribute to India’s economic growth by creating 1.1-1.4 million jobs across the entire value chain. Furthermore, it would reduce the country’s dependence on imported crude oil.

The report also emphasizes the potential of utilizing agricultural residue as feedstock for SAF production, which could boost farmers’ incomes by 10-15%. India’s vast surplus of agricultural residue, estimated at 230 million tonnes, offers a sustainable and readily available source for SAF production.

While India has set indicative blending targets for international flights (1% by 2027 and 2% by 2028), a mandate for domestic flights is yet to be established. Globally, countries are adopting ambitious SAF blending mandates, such as the European Union’s detailed roadmap for using bio-SAF and synthetic SAF until 2050. The EU’s stringent regulations, which are more demanding than International Civil Aviation Organization (ICAO) guidelines, require SAF production using feedstocks not diverted from the food value chain.

The Deloitte India report suggests that India is well-positioned to become a leading SAF producer and exporter, contributing significantly to the global effort towards decarbonizing the aviation sector. However, realizing this vision hinges on substantial investments and the implementation of supportive policies to incentivize SAF production.

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