India likely to shift to green jet fuel by mid-2027: Official
A much-awaited policy for sustainable aviation fuel (SAF) will likely be released for stakeholder consultations next month
India will likely shift to ethanol-blended aviation fuel by mid-2027 and ramp it up in phases, with the addition of over two dozen distilleries on the back of federal incentives for biofuels, an official aware of the details said on Sunday.
The world’s third-largest aviation market is looking to achieve 1% ethanol blending for jet fuel by 2027, 2% by 2028 and 5% by 2030, Union Minister of State (MoS) for civil aviation Murlidhar Mohol had told Parliament earlier this month.
India has already conducted test flights with sustainable fuel. Air Vistara, now merged with Air India, operated a transatlantic test flight of a Boeing 787 from the US to India using 28% blended fuel in March 2023. Air Asia operated the first commercial domestic flight (Pune to Delhi) with 0.75% blended fuel the same year.
A much-awaited policy for sustainable aviation fuel (SAF) will likely be released for stakeholder consultations next month, the official cited above said on condition of anonymity. Meanwhile, a top industry executive said installed production capacity of ethanol exceeds demand by 4.22 billion litres currently, which is enough to meet the initial target for SAF.
In 2016, the International Civil Aviation Organization (ICAO) introduced the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) scheme to limit aviation emissions to 85% of 2019 levels, requiring decarbonisation initiatives by carriers globally.
India, a member of ICAO, has to comply with mandatory phases of carbon offsetting in aviation from 2027.
The international aviation entity recognises 11 pathways to switch to green jet kerosene, and ethanol made from byproducts of sugar are carbon neutral, said Deepak Ballani, the director general of the Sugar & Bio-Energy Manufacturers’ Association (ISMA), a leading industry body.
“SAF based on ethanol had the least carbon intensity, according to studies done in partnership with organisations such as Deloitte (consulting firm) and The Energy Research Institute (TERI). The government is drawing insights from these studies,” Ballani said.
The government is working in collaboration with organisations, such as ISMA, on preparing a biofuels programme and road map. Distilleries have conducted several trials to supply ethanol for low-carbon jet kerosene and the government is likely to announce a policy for sustainable aviation fuel by next month, the official quoted above said.
In July, India achieved the target of mixing 20% ethanol — an alcohol compound extracted from sugarcane molasses and grains — with petrol, a move towards paring oil imports.
“India has an inherent advantage in producing ethanol due to its unique ecosystem that binds farmers and millers in historic partnerships,” Ballani said. However, there will be some challenges in rolling out SAF, unlike E20, because it will require trilateral partnerships between distilleries, oil marketing companies and airlines, he said.
The Centre is implementing the Pradhan Mantri JI-VAN (Jaiv Indhan - Vatavaran Anukool fasal awashesh Nivaran) Yojana, offering financial aid for biofuel plants, including for sustainable aviation fuel. Over 30 new distilleries have been set up by ethanol producers on the back of these incentives.
The government offers interest subvention for five years, including a one year moratorium, against the loan availed by project proponents from banks at 6% per annum or half the rate of interest charged by banks, whichever is lower, for setting up of new ethanol-producing distilleries.
