Sustainable Aviation Fuel – SAF – Indian Market Scenario

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This detailed report delves into the promising potential of Sustainable Aviation Fuel (SAF) in addressing the environmental challenges posed by the aviation industry. SAF, derived from plant or animal materials, offers a significant reduction in greenhouse gas emissions—up to 80% compared to traditional jet fuels. The report explores the current and future market potential of SAF in India, key players in the industry, specific production processes, available feedstock options, new technologies, end-use applications, key challenges, opportunities, business models, and strategic initiatives by Indian industries.

Introduction

Sustainable Aviation Fuel (SAF) is a promising solution to the environmental challenges posed by the aviation industry. It is a type of biofuel, made from plant or animal materials rather than fossil fuels. SAF has the potential to significantly reduce aviation’s greenhouse gas emissions, with some estimates suggesting a reduction of up to 80% compared to traditional jet fuels. This post provides all the details on the opportunities presented by SAF in the Indian market.

Market potential

Current Market Potential

• The global market for SAF was valued at approximately USD 1.1 billion in 2023 and is expected to reach USD 16.8 billion by 2030, at an attractive compound annual growth rate (CAGR) of 47.7%.
• While SAF currently only accounts for a small fraction of the overall aviation fuel market (less than 0.1%), its usage is rapidly increasing. In 2022, global SAF production reached an estimated 300,000 tonnes, and this is expected to grow significantly in the coming years.

Future Market Potential

• The future market potential for SAF is significant, with some estimates suggesting that it could account for up to 50% of the global aviation fuel market by 2050. This would require a massive increase in production capacity, but the potential environmental and economic benefits are driving significant investments in this sector.

Here are some of the key factors that will influence the future market potential of SAF

• The cost of production: As production processes become more efficient and economies of scale are achieved, the cost of SAF is expected to decrease, making it more competitive with conventional jet fuel.
• Government policies and incentives: Supportive government policies, such as tax breaks and subsidies, can play a crucial role in stimulating the development and adoption of SAF.
• Technological advancements: Continued research and development in feedstock production, conversion technologies, and logistics can further improve the sustainability and cost-effectiveness of SAF.
• Consumer demand: Growing consumer awareness of the environmental impact of aviation and a willingness to pay a premium for sustainable travel can also drive the demand for SAF.

 Key Stakeholders in the Indian SAF Sector

Category	Examples	Description
Producers (Pilot/Demonstration Phase)	Indian Oil Corporation (IOC)	Piloting green hydrogen-based SAF production at Mathura refinery.
	Praj Industries	Developing indigenous technologies for SAF production from various feedstocks.
Raw Material Suppliers (Potential Sources)	Used cooking oil (UCO) Aggregators	Readily available UCO is processed into SAF through HEFA.
	Jatropha Cultivators	Researches include making SAF and other biofuels from jatropha.
	Algae Researchers	Algae are a biomass source with significant potential for sustainable SAF production.
	Municipal solid waste aggregators	Organic fraction of MSW can be converted into bio-oil for SAF production
	Lignocellulosic biomass processors	Plant-based material like crop waste and sugarcane bagasse hold promise for future SAF feedstock.
Technology Solution Providers	Indian Institute of Petroleum (IIP)	Conducts research on biofuels, including SAF.
	The Energy and Resources Institute (TERI)	Involved in research and development of biofuels and sustainable aviation solutions.
	Council of Scientific and Industrial Research (CSIR) – Indian Institute of Chemical Technology (IICT)	Researches bioconversion technologies for SAF feedstock production.
	Bangalore Aviation Research and Development Centre (BARDC)	Focuses on research and development related to aviation technologies, including sustainable aviation fuels.
	IIT – Delhi, Chennai, Mumbai	Conduct research on various aspects of biofuels, including potential SAF feedstocks and conversion technologies.
Government Agencies and Initiatives	Ministry of Petroleum and Natural Gas (MoPNG)	Responsible for formulating and implementing policies related to the oil and gas sector, including initiatives for promoting SAF.
	Ministry of New and Renewable Energy (MNRE)	Supports research and development of renewable energy technologies, including biofuels for aviation.
	Directorate General of Civil Aviation (DGCA)	Regulates civil aviation in India and can play a role in promoting the adoption of SAF by airlines.
	NITI Aayog	Government think tank that can contribute to policy formulation and program development for promoting SAF in India.

Specifics of Sustainable Aviation Fuel (SAF) Production Processes

1. Feedstock Selection and Pre-Treatment

• Used Cooking Oil (UCO)
  • Pre-treatment: Primarily involves filtration to remove impurities and water. Depending on the quality of the UCO, additional steps like deacidification or degumming might be necessary.
  • Technical details: The high content of triglycerides in UCO makes it a suitable feedstock for the HEFA process due to its existing chemical structure requiring minimal conversion compared to other options.
• Biomass (e.g., Jatropha)
  • Pre-treatment: Often involves crushing, grinding, and potentially pyrolysis (heating in the absence of oxygen) to break down the complex structure of the biomass and release oils suitable for conversion.
  • Technical details: The type of pre-treatment and specific conditions used can vary depending on the specific biomass feedstock and the desired output.
• Municipal Solid Waste (Organic Fraction)
  • Pre-treatment: Requires advanced technologies like anaerobic digestion to convert the organic fraction into bio-oil suitable for further processing.
  • Technical details: Efficient waste segregation and management systems are crucial to ensure the quality and sustainability of the feedstock derived from municipal solid waste.
• Lignocellulosic Biomass (e.g., Sugarcane Bagasse)
  • Pre-treatment: Often employs a combination of mechanical (grinding) and chemical (enzymatic hydrolysis) methods to break down the cellulose and hemicellulose into fermentable sugars.
  • Technical details: Optimizing the pre-treatment process for efficient conversion of lignocellulosic biomass into fermentable sugars is crucial for the economic viability of this feedstock option.

2. Conversion Pathways

a) Hydroprocessed Esters and Fatty Acids (HEFA)

• Process specifics
  • Esterification: Typically uses methanol as a reactant and a solid acid catalyst like ion-exchange resins. Reaction temperatures are around 65°C (149°F) and pressures are around 1 atm (101.3 kPa).
  • Hydrotreatment: Uses hydrogen at high pressure (around 70-100 atm) and temperature (around 300-400°C) in the presence of a catalyst (e.g., nickel) to remove oxygen and saturate carbon bonds.

b) Biomass-to-Liquids (BTL) Pathway

i) Gasification

• Process specifics: Occurs in a gasifier at high temperatures (around 700-1500°C) with limited oxygen supply. The specific gasification technology and operating conditions can vary depending on the feedstock.

ii) Fischer-Tropsch (FT) Synthesis

• Process specifics: Typically uses a fixed-bed reactor packed with a catalyst (e.g., cobalt or iron) at moderate temperatures (around 220-350°C) and pressures (around 10-30 atm). The syngas composition and reaction conditions influence the product distribution of the hydrocarbon mixture.

c) Alcohol-to-Jet Fuel Direct Pathway

i) Alcohol Dehydration

• Process specifics: Alcohols (e.g., ethanol or butanol) are converted into olefins at 300-450°C using acidic catalysts like zeolites. This process removes water from the alcohol molecules.

ii) Oligomerization

• Process specifics: Olefins are polymerized into longer-chain hydrocarbons at 150-300°C and 1-10 atm, using catalysts such as phosphoric acid on silica or zeolites. This forms hydrocarbons suitable for jet fuel.

iii) Hydrogenation and Fractionation

• Process specifics: The hydrocarbons are saturated with hydrogen at 200-300°C and 10-50 atm using metal catalysts like palladium or nickel. The final product is then distilled to separate jet fuel range hydrocarbons (C8-C16) for aviation use.

3. Upgrading and Refining

• Specific processes and conditions used for upgrading and refining can vary depending on the desired product quality and the composition of the intermediate product from the conversion pathway.
• Examples of specific technologies used in this stage include:
  • Hydrocracking: Often employs catalysts like zeolites at high temperatures and pressures to crack long-chain hydrocarbons into smaller molecules.
  • Isomerization: May utilize acidic catalysts at moderate temperatures to rearrange carbon chains in the molecules for improved performance.

4. Blending and Certification

• Blending typically involves mixing SAF with conventional jet fuel at specific ratios depending on the certification requirements and operational needs. Common blends include 50/50 and 20/80 (SAF/conventional jet fuel).
• Certification involves rigorous testing and evaluation of the SAF against international standards like ASTM D7566 and ICAO Annex 1, covering various properties like flash point, freezing point, lubricity, and combustion characteristics.

Feedstock Options and Availability in India

Feedstock	Description	Potential Availability in India	Advantages	Disadvantages
Used Cooking Oil (UCO)	Waste vegetable oil collected from restaurants, households, and food processing facilities.	Widely available across India, especially in urban areas.	Requires significant water and nutrient inputs, and needs advanced cultivation technologies.	Requires efficient collection and processing infrastructure.
Non-food Oilseed Crops (e.g., Jatropha, Pongamia)	Plants cultivated specifically for oil production on non-arable land.	Suitable for wastelands and degraded lands. Relatively drought-resistant. (Gujarat, Rajasthan, Andhra Pradesh)	Relatively drought-resistant.	Dedicated land required, potential for competition with other land uses.
Algae	Microscopic organisms grown in controlled environments or open ponds.	(Potential across India with suitable water and climate conditions)	High oil yields and potential for CO2 capture.	Biodegradable portions of municipal waste are separated through composting or anaerobic digestion.
Agricultural Residues (e.g., Sugarcane Bagasse, Rice Straw)	Leftover materials from agricultural practices.	Abundantly available in major agricultural regions. (Maharashtra, Karnataka, Uttar Pradesh, Punjab)	Doesn’t require additional land, and reduces the burning of agricultural waste.	Pre-treatment challenges compete with other uses like composting.
Municipal Solid Waste (Organic Fraction)	Biodegradable portions of municipal waste are separated through composting or anaerobic digestion.	Available in all urban areas with waste management systems.	Diverts waste from landfills, potential for renewable energy co-production.	Requires efficient waste segregation and processing infrastructure.

New Technologies in the Sustainable Aviation Fuel (SAF) Sector

Technology	Description	TRL Level	Advantages	Disadvantages	Example
Consolidated Bioprocessing (CBP)	Combines biomass pre-treatment, fermentation, and product separation into a single process, potentially reducing costs and increasing efficiency.	3-4	Less complex process layout, potentially higher yields.	Requires further development and optimization to achieve commercial viability.	LanzaTech: Utilizes CBP to convert industrial waste gases into ethanol and other chemicals.
Electrofuels	Utilizes renewable electricity and captured CO2 or water to produce synthetic fuels like SAF through electrolysis and subsequent conversion processes.	3-4	Offers a way to utilize high-moisture feedstocks, potentially reducing pre-treatment needs.	Requires significant cost reductions in both electrolysis and subsequent conversion steps.	Carbon Clean Solutions: Researching electrofuels for CO2 utilization and fuel production.
Catalytic Fast Pyrolysis (CFP)	Converts biomass into bio-oil using a catalyst at high temperatures and short residence times, potentially improving yield and product quality.	4-5	Higher bio-oil yields compared to conventional pyrolysis, potential for integration with existing gasification technologies.	Requires further development and optimization for specific feedstocks and desired product properties.	Praj Industries: Developing CFP technology for bio-oil production from agricultural residues.
Advanced Hydrothermal Liquefaction (AHL)	Converts wet biomass (including algae) into bio-crude oil using high temperatures and pressure in water, potentially utilizing low-quality feedstocks.	3-4	Bypasses the need for intermediate conversion steps, and potentially reduces production costs.	Requires further research to optimize process parameters and address challenges like scaling up and wastewater treatment.	IISc (Indian Institute of Science): Researching AHL for bio-crude production from wet biomass.
Direct Alcohol-to-Jet (DATJ)	Converts renewable alcohols (e.g., ethanol from biomass) directly into jet fuel using catalytic processes, potentially simplifying the production chain.	3-4	Bypasses the need for intermediate conversion steps, and potentially reduces production costs.	Requires further development and optimization of catalysts for high efficiency and compatibility with various alcohols.	Gevo Inc.: Working on DATJ technology to produce jet fuel from renewable alcohols. Location: Global (operational in the US)

End-Use Applications of Sustainable Aviation Fuel (SAF)

Application	Description	Benefits	Current Status	Example
Commercial Passenger Flights (Domestic & International)	Powers aircraft for transporting passengers, regardless of route length or aircraft type.	Reduces the environmental impact of air cargo, crucial for a growing sector.	Primary application, used in blends with conventional jet fuel.	SpiceJet: Conducted India’s first biofuel-powered flight. Location: India
Cargo Flights	Powers aircraft for transporting cargo, offering similar benefits as passenger flights.	Reduces the environmental impact of air cargo, crucial for a growing sector.	Early adoption, similar considerations as passenger flights.	FedEx: Implementing SAF in cargo flights to reduce carbon footprint. Location: Global
Military Aviation	Powering military aircraft, subject to meeting specific fuel specifications and storage requirements.	Potential for future use, additional considerations needed.	Limited exploration, not a current focus.	US Air Force: Testing SAF for military aircraft. Location: USA
General Aviation (Private Jets, Business Aircraft)	Powering smaller aircraft in general aviation, subject to wider availability and cost competitiveness.	Potential for future use as technology matures and costs decrease.	Limited to research and development, not widely available yet.	NetJets: Exploring SAF for its fleet of private jets. Location: Global

Key Challenges

1. Limited Production and High-cost

• Current production capacity is far below the demand, leading to limited availability of SAF for airlines.
• Production processes are often complex and more expensive compared to conventional jet fuel, making SAF less economically viable for airlines at current prices.
  • Examples: World Energy expanding production capacity for SAF to meet growing demand.
  • Location: Los Angeles, USA

2. Feedstock Sustainability

• Ensuring the sustainability of feedstock production is crucial to avoid unintended consequences like deforestation, land-use change, or competition with food production.
• Balancing the need for diverse feedstock options with the requirement for sustainable sourcing practices is a complex challenge.
  • Examples: Neste is sourcing sustainable feedstocks for SAF production, focusing on waste and residues.
  • Location: Finland

3. Policy and Regulatory Framework

• A clear and supportive policy and regulatory framework is needed to incentivize investment in SAF production and encourage airline adoption.
• Carbon pricing or blending mandates could play a role in making SAF more competitive with conventional jet fuel.
  • Examples: ICAO is developing global standards and policies to promote the use of SAF in aviation.
  • Location: Global

4. Technological Advancements

• Continuous research and development are needed to improve existing production processes and explore new, more efficient, and cost-effective technologies for SAF production.
• Scaling up production capacity through technological advancements and infrastructure development is essential to meet future demand.
  • Examples: The National Renewable Energy Laboratory (NREL) is researching new technologies to improve SAF production
  • Location: Colorado, USA

5. Public Awareness and Support

• Raising public awareness about the benefits of SAF and its role in decarbonizing the aviation sector is crucial for garnering wider support and fostering market demand.
• Collaboration between various stakeholders, including government agencies, airlines, fuel producers, and research institutions, is essential to overcome these challenges and ensure the successful development and deployment of SAF.
  • Examples: ATAG (Air Transport Action Group) is promoting the benefits of SAF through public awareness campaigns.
  • Location: Global

Opportunities in the Sustainable Aviation Fuel (SAF) Sector

Stakeholder	Opportunities	Description	Example
Airlines	Reduced Carbon Footprint	Mitigate dependence on fossil fuels, and benefit from potential cost reductions.	SpiceJet: Successfully conducted India’s first biofuel-powered flight, demonstrating reduced emissions.
	Compliance with Regulations	Prepare for stricter emission regulations and future-proof operations.	Vistara: Engaging in SAF blending trials to prepare for stricter future emission regulations.
	Fuel Diversification	Capitalize on increasing demand, and expand production capacity.	Air India: Exploring partnerships with global SAF producers to diversify fuel sources and expand capacity.
Fuel Producers	Growing Market	Position the country as a leader in climate change mitigation and aviation innovation.	Indian Oil Corporation (IOC): Investing in SAF production to position itself as a leader in climate change mitigation.
	Premium Pricing	Earn higher margins due to limited supply and environmental benefits.	Bharat Petroleum Corporation Limited (BPCL): Capitalizing on the limited supply and environmental benefits to command higher margins.
	Technology Leadership	Establish leadership by adopting innovative and efficient production technologies.	Praj Industries: Developing innovative SAF production technologies, establishing itself as a technology leader.
Investors	Sustainable Investment Opportunities	Generate returns while contributing to a sustainable future.	Infuse Ventures: Investing in sustainable startups within the SAF sector to generate returns and contribute to a sustainable future.
	Emerging Markets	Explore high-growth opportunities in developing SAF markets.	Tata Capital Innovations Fund: Exploring high-growth opportunities in developing SAF markets.
Governments	Job Creation	Support economic growth through job creation across various sectors.	Ministry of New and Renewable Energy (MNRE): Supporting SAF projects that generate jobs across various sectors.
	Energy Security	Enhance energy independence by reducing reliance on imported fossil fuels.	NITI Aayog: Promoting SAF production to enhance energy independence by reducing reliance on imported fossil fuels.
	Environmental Leadership	Attract funding, and establish leadership by developing efficient and cost-effective SAF production methods.	Government of Maharashtra: Attracting funding and establishing leadership by developing efficient and cost-effective SAF production methods.
Researchers and Innovators	Develop New Technologies	Improve the overall environmental performance of the SAF sector by exploring sustainable feedstock options and production processes.	Indian Institute of Petroleum (IIP): Improving the overall environmental performance of the SAF sector by exploring sustainable feedstock options and production processes.

Business Models in the Sustainable Aviation Fuel (SAF) Sector

Business Model	Description	Key Players	Advantages	Disadvantages	Example
Feedstock Production and Pre-treatment	Companies focus on cultivating, collecting, and pre-treating sustainable feedstock for SAF production.	Creates a dedicated supply chain for SAF, potentially reducing reliance on existing fuel infrastructure.	Creates a dedicated supply chain for SAF, potentially reducing reliance on existing fuel infrastructure.	Requires expertise in specific feedstock types and efficient pre-treatment processes.	BioD Energy (New Delhi): Focuses on collecting and pre-treating used cooking oil as a sustainable feedstock for SAF production.
SAF Production and Refining	Companies specialize in converting pre-treated feedstock into finished SAF using various technologies.	Utilizes existing fuel distribution infrastructure, and minimizes disruption for airlines.	Established energy companies, biofuel producers, and technology developers.	Requires significant upfront investment in technology and infrastructure.	Reliance Industries (Jamnagar, Gujarat): Specializes in converting pre-treated feedstock into finished SAF using advanced technologies.
Blending and Distribution	Companies blend SAF with conventional jet fuel at specified ratios and distribute it to airports and airlines.	Existing fuel distributors, and airlines with refining capabilities.	Existing fuel distributors, and airlines with refining capabilities.	Requires collaboration with multiple stakeholders, and limited control over feedstock production and pricing.	HPCL (Hindustan Petroleum Corporation Limited, Mumbai, Maharashtra): Once SAF us available commercially, plans to blend SAF with conventional jet fuel and distribute it to airports and airlines.
Integrated Model	Companies combine various aspects of the SAF value chain, including feedstock production, conversion, blending, and distribution.	Large energy companies, consortiums of diverse stakeholders.	Offers greater control over the entire supply chain, the potential for optimization and cost reduction.	Requires significant capital investment and expertise across diverse areas.	Tata Group: Combines various aspects of the SAF value chain, including feedstock production, conversion, blending, and distribution.

Strategic Industry Initiatives

Airlines

• Early Adoption and Blending Trials: Some Indian airlines, like Vistara, have conducted successful trials using blends of SAF in their commercial flights. This demonstrates a willingness to explore this alternative fuel and gain operational experience.
  • Example: Vistara: Conducted successful trials using blends of SAF in commercial flights.
• Collaboration with International Partners: Indian airlines are collaborating with international airlines and fuel suppliers to explore potential SAF sourcing partnerships. This collaboration can help access existing SAF production capacity while domestic production ramps up.
  • Example: Air India: Collaborating with international airlines and fuel suppliers for SAF sourcing partnerships.

Oil and Gas Companies

• Investment in Research and Development: Major Indian oil and gas companies, like Indian Oil Corporation (IOC) and Bharat Petroleum Corporation Limited (BPCL), are investing in R&D to develop and optimize SAF production technologies suitable for Indian feedstock options.
  • Example: Indian Oil Corporation (IOC): Investing in R&D to develop and optimize SAF production technologies suitable for Indian feedstock options.
• Feasibility Studies and Pilot Projects: These companies are conducting feasibility studies and setting up pilot projects to explore the viability of SAF production at scale in India. This includes exploring potential feedstocks like jatropha and used cooking oil.
  • Example: Bharat Petroleum Corporation Limited (BPCL): Conducting feasibility studies and pilot projects for SAF production at scale in India.

Startups and Technology Providers

• Innovation in Feedstock and Conversion Technologies: Indian startups are developing innovative solutions for sustainable feedstock production and conversion technologies. This includes exploring options like algae cultivation and microbial conversion processes.
  • Example:  Sea6 Energy (Bengaluru, Karnataka): Developing innovative solutions for sustainable feedstock production, including algae cultivation.
• Building Domestic Production Capacity: These startups are working towards establishing domestic SAF production facilities, potentially reducing reliance on imported fuels and contributing to the creation of a domestic SAF ecosystem.
  • Example: Praj Industries (Pune, Maharashtra): Working towards establishing domestic SAF production facilities.

Industry Associations and Research Institutions

• Advocacy and Knowledge Sharing: Industry associations like the Society of Indian Airlines (SIA) are advocating for supportive government policies and promoting knowledge sharing among stakeholders.
• Collaboration on Research Projects: Research institutions like the Indian Institute of Petroleum (IIP) are collaborating with industry players on research projects focused on developing cost-effective and sustainable SAF production methods.
  • Example: Indian Institute of Petroleum (IIP, Dehradun, Uttarakhand): Collaborating with industry players on research projects focused on cost-effective and sustainable SAF production methods.

Conclusion

Sustainable Aviation Fuel (SAF) offers a significant opportunity for India’s aviation sector to reduce greenhouse gas emissions and meet environmental goals. With the global market expected to grow from USD 1.1 billion in 2023 to USD 16.8 billion by 2030, India can leverage its domestic feedstocks like used cooking oil and crop waste to establish a strong SAF industry. Key players, including Indian Oil Corporation and Praj Industries, are leading efforts in research and pilot projects to develop cost-effective and sustainable SAF production methods.

Overcoming challenges such as high production costs and feedstock sustainability will require supportive government policies, technological advancements, and strategic collaborations among stakeholders. By investing in innovative technologies and building domestic production capacity, India can reduce its reliance on imported fuels, drive economic growth, and enhance energy security. These will position India as a leader in the global SAF market while significantly contributing to global climate change mitigation efforts.