Sustainable Aviation Fuel

The sugarcane industry is driving sustainable aviation fuel (SAF) initiatives, positioning sugarcane as a key crop in the quest for greener skies. Its high yield and efficient conversion into biofuels significantly reduce carbon emissions.

Boosting India’s Jet Fuel Market

Ranking third globally in overall energy demand, India’s rapidly urbanising economy is dependent on imported oil – importing 82% of the total used in 2020. The government has established a roadmap to reduce crude oil imports by 10% by 2022, through expanded renewable energy supplies and domestic biofuel production.

Producing SAF domestically would add to the total volume of jet fuel available to the Indian market, displacing equivalent volumes of production from imported oil feedstock and thereby enabling export opportunities. Subsequent jet fuel exports, estimated at a value of $210 million, support the Indian government’s vision of self-reliance and the Make in India agenda.

Additional Income for Farmers

On average, India’s farmers have an annual income of $1,000–$1,140 and work one hectare of land. According to research published in 2019, selling agricultural residue could provide farmers with an additional income of $160 per hectare, which represents an approximate income increase of 15% based on average income.

As the SAF industry scales, annual demand for agricultural residue is expected to rise by 1.7 million tons for four plants producing 100 kilolitres of SAF per day by 2030. In total, this could provide 300,000 farmers with more than $50 million in additional income.

Strategic Steps

SAF Goals

SAF Economic Incentives

The National Bio-kerosene program adopted by Brazil is a policy that directs federal agencies and institutions to provide resources to SAF projects, as well as fiscal incentives. The United States Low-carbon fuel standard is an initiative regarding crediting for fuel pathways and projects, based on a carbon intensity score.

Northern Europe SAF Mandates

Norway’s 0.5% SAF blend mandate, started in 2020, considers a 30% target for 2030. Based on the Ministry of Energy and Mineral Resources Decree No. 25 Year 2013, the use of bio-jet fuel has been mandated on a national level. This requires 2% bio jet fuel blending in 2016, 3% by 2020, and 5% by 2025.

RTFO Initiative

The Renewable Transport Fuel Obligation (RTFO) commenced on 15 April 2008 and is one of the Government's main policies for reducing greenhouse gas emissions from transport. The United Kingdom Renewable Transport Fuel Obligation rewards SAF production with the same economic incentives given to road vehicles.

Acts & Orders

CORSIA mandates 1% blending of Sustainable Aviation Fuel with traditional Turbine Fuel by 2027 increasing to 5% by 2030. India has feedstock for potential production of 19 to 24 million tons of SAF per year, whereas the estimated maximum requirement of SAF in India, considering 50% blend, is around 8 to 10 million tons per year by 2030. Given the economic and technological advancement in the sugar refineries, they are strategically positioned to meet the CORSIA mandates to contribute to cleaner skies for India and globally.

Campaigns

SAF Blending Programme

ISMA is advocating for a holistic policy roadmap for SAF blending programme at a National Level similar to the Ethanol Blending Programme (EBP).

Zero Tax Policy Initiative

ISMA advocates for zero tax policy on indigenous SAF manufacturing technology to promote Make In India and a 5% GST on SAF should be announced at least till 2030 (where India is committed to a 5% blend).