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SAF Body Calls For Incentives To Airlines As India Opens Skies To Ethanol-Blended Jet Fuel

Kumar emphasised that as domestic output increases, SAF prices are expected to decline, easing the burden on airlines over time.

SAF Body Calls For Incentives To Airlines As India Opens Skies To Ethanol-Blended Jet Fuel
Photo Source: Unsplash

India's push towards cleaner aviation fuel is gathering pace, with Rohit Kumar of the Sustainable Aviation Fuel (SAF) Association India seeking targeted incentives for airlines as the country prepares to introduce ethanol-blended jet fuel. He also added that the move marks a significant step in India's broader energy transition, but underlined that financial support will be crucial to ensure a smooth take-off.

Kumar noted that the initial blending target of 1% is unlikely to materially impact airfares. “At this level, we don't expect a big difference in ticket prices,” he told NDTV Profit, adding that the rollout has been designed as a phased and strategic process. According to him, the gradual adoption will allow airlines and fuel producers to scale up efficiently while building a robust domestic SAF ecosystem.

India has laid out a clear roadmap for SAF adoption, targeting 1% blending by 2027, 2% by 2028 and 5% by 2030. This staggered approach is aimed at giving the industry time to ramp up production capacity and bring down costs. Kumar emphasised that as domestic output increases, SAF prices are expected to decline, easing the burden on airlines over time.

However, in the near term, cost remains a key concern. SAF is currently more expensive than conventional aviation turbine fuel, prompting calls for government intervention. “Incentives for airlines can help bridge the gap in the initial phase,” Kumar said, suggesting that policy support could accelerate adoption and prevent cost pressures from being passed on to passengers.

The recently issued Gazette notification on SAF is seen as a turning point, offering a defined regulatory framework for the sector. Industry experts believe this will catalyse investments and provide clarity for stakeholders across the value chain. “The regulatory framework will give a strong boost to the energy transition in aviation,” Kumar noted, particularly at a time when geopolitical uncertainties are reinforcing the need for energy security.

ALSO READ: Green Skies: Govt Permits Ethanol Blending In ATF In Big Push For Biofuels

India's advantage lies in its abundant feedstock and technological readiness. The country holds over 10% of the world's biomass resources and is already exploring multiple production pathways, including ethanol-to-SAF, used cooking oil (UCO)-to-SAF, and carbon capture-based fuels. State-run refiners such as Indian Oil Corporation have already initiated steps to set up SAF production facilities.

Pilot projects have also demonstrated feasibility, with airlines like Air India and IndiGo conducting test flights using blended fuel. These early successes signal operational readiness and reinforce confidence in scaling up SAF deployment.

Globally, regions such as the European Union and the United States have already begun integrating SAF into their aviation sectors, providing useful benchmarks for India. Kumar pointed out that one key lesson is to focus on a limited number of production pathways to avoid excessive input costs for airlines and passengers.

India's prior success with ethanol blending in petrol is also seen as a strong foundation for the SAF transition. Leveraging this experience, the country aims not only to meet its domestic demand but also to emerge as a global supplier. Industry estimates suggest India could contribute 5–6% of global SAF production in the coming years.

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