India can produce 8-10 million tonnes of Sustainable Aviation Fuel (SAF) by 2040, as stated by a Deloitte India report. To achieve this level of production, an investment of about $70-85 billion (Rs 6-7 lakh crore) will be needed. The report also reveals that this level of production will exceed India’s domestic demand for SAF which has been evaluated at 4.5 million tonnes for a 15% blending mandate for all the flights by 2040. This will make India positioned as a major exporter of SAF to global markets.
The investments for this will help in India’s aviation sector’s decarbonization efforts as well as lessening carbon emissions by an expected 20-25 million tonnes annually. The estimated investments will also help generate 1.1-1.4 million jobs in the SAF value chain and will lower India’s crude oil import bill by $5.7 billion per year.
Boost for farmers
The report also highlights the crucial role of agricultural residue as India is predicted to have a surplus of 230 million tonnes by 2040. The residue can be utilized as feedstock for SAF production. This will increase farmers’ income by 10-15% by providing a sustainable alternative to burning crop waste. Ethanol is a major component of the Alcohol-to-Jet (AtJ) technology which is essential for SAF manufacturing and is formed by the agricultural residue.
India’s commitment to SAF will not only decarbonize its aviation sector but will create opportunities for sustainable practices, and job creation and would also help in reducing imports. Later as technology advances alternative options like used cooking oil, industrial waste, municipal solid waste, seaweed, and sorghum will also contribute to the making of SAF production. Deloitte India’s partner, Prashanth Nutula also underlined that India’s geographical proximity to major airline hubs and its cost structure will make India a major player in the SAF market globally.
(With inputs from PTI)