Airlines across the world will not adopt sustainable aviation fuels (SAF) unless they become cost-competitive with conventional jet fuel, Jimmy Olsson, President of the Sustainable Aviation Fuel Association (Safa), has said, reports Businessworld.
Speaking to BW Businessworld, Olsson stressed that the responsibility lies with fuel producers to innovate and bring down SAF costs while maintaining environmental integrity. “If you set up your SAF plant in the correct manner, it is very much financially viable,” he said, adding that the entire value chain — from feedstock collection to final fuel production — needs to be reimagined.
India, one of the world’s fastest-growing aviation markets, currently accounts for about 2.5 per cent of global aviation turbine fuel (ATF) demand, exporting nearly half of its production. Passenger traffic is projected to rise from 220 million in 2023-24 to nearly 390 million by 2030, while freight volumes are expected to more than double to 5.1 million tonnes, according to a Deloitte study.
ATF demand is likely to reach 15–16 million tonnes by 2030. This rapid growth, coupled with increasing carbon emissions, makes SAF adoption critical.
India has announced blending mandates of 1 per cent by 2027, 2 per cent by 2028, and 5 per cent by 2030 for international flights. SAF is expected to contribute between 53 and 66 per cent toward India’s net-zero aviation targets by 2050.
Abundant domestic feedstocks — including agricultural residues, sugarcane, sweet sorghum, and used cooking oil — provide a strong foundation. These can cut carbon intensity by up to 84 per cent, ICAO studies show.
“With careful planning, technological adoption, and efficient supply chains, SAF can be produced and supplied in a way that is practical, financially sustainable, and beneficial to all stakeholders,” Olsson said.
At present, SAF costs two to five times more than conventional jet fuel, depending on feedstock. Agricultural residue-based SAF is priced at USD 550–650 per tonne, used cooking oil at USD 800–900, and sugarcane at USD 300–400.
Domestic demand at 5 per cent blending is expected to reach 0.8 million tonnes by 2030, but with a production potential of 8–10 million tonnes, India could not only meet domestic needs but also export. Already, over ₹3,000 crore has been committed under central and state schemes to support SAF production.
Olsson noted that at low blending mandates of 1–5 per cent, the cost impact on airlines is minimal. “Even low-cost carriers can adopt SAF without affecting profitability. European carriers like KLM and Lufthansa are already offering low-carbon flights at a small premium, showing that sustainable aviation can be integrated successfully,” he said.
Concerns remain over food security if agricultural feedstocks are diverted to fuel production. Olsson argued that linking SAF to farmer incomes, employment, and sustainable practices is essential.
India’s crop residue management programmes, particularly in Punjab and Haryana, have already reduced stubble burning by up to 69 per cent, cutting a million tonnes of CO2 emissions and adding USD 14 million to farmer incomes. “Any sustainable SAF business in India must consider all stakeholders — it must support rural livelihoods, remain affordable, and not compromise food security,” Olsson emphasised.
With domestic SAF production potential far exceeding projected demand, India has the opportunity to reduce aviation emissions while positioning itself as an exporter.
“By addressing price, sustainability, and social impact together, India can develop a robust SAF market that benefits airlines, passengers, and communities alike,” Olsson said. “With proper planning, innovation, and collaboration, India has the potential to become a global hub for sustainable aviation fuel.”
