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India positioned to scale lower-cost sustainable aviation fuel supply
A joint study by IECC at UC Berkeley and Energy Innovation estimates India could offer SAF at costs up to 40.0% below global benchmarks and build an export business starting in the 2030s.
Sustainable aviation fuels remain a small share of jet fuel use, with IATA reporting SAF production at only 0.6% of total jet fuel consumption, far short of the 65% target the global aviation industry set for reaching net-zero emissions by 2050, OilPrice notes.
The article also points to major economic and supply constraints for airlines, saying SAF currently costs two to five times more than conventional jet fuel and that there is not enough refining capacity or feedstock, such as cooking oil and animal fats, to scale production. Producers are also reportedly hesitant to invest without long-term supply agreements.
However, the piece highlights a new report from a joint study by IECC at UC Berkeley and Energy Innovation that argues India is uniquely positioned to produce enough SAF for global markets, with production costs up to 40.0% below global benchmarks.
OilPrice adds that India could convert its crude oil import vulnerabilities into an export opportunity by scaling Power-and-Biomass-to-Liquids Sustainable Aviation Fuels, targeting a $9 billion export market by 2030 and $30 billion by 2040.
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