Reactions are pouring in over the Government’s decisive move to amend the ATF Order to allow the blending of SAF with ATF, to create a greener aviation fuel.
Narendra Mohan, Ex-Director, National Sugar Institute (Kanpur), and Managing Director, Greentech Consultants, welcomed the move, stating that this will help the ethanol producers in the long run.
“Looking at the blending targets for 2027 and 2028 and considering 2G ethanol to produce 1G SAF, the ethanol requirement would be limited to about 60 and 120 crore litres per annum, respectively, but as the blending levels increase to 5% and further from 2030, the requirement would be significant. Driving for again would be the cost of production vis-à-vis purchase price. Don’t forget, 2G ethanol”, he said.
Biofuel basket gets bigger
Atul Chaturvedi, Director, Shree Renuka Sugars, concurred with the view and welcomed the notification. He said that “The notification allows blending of SAF for achieving the target of 1% with other feedstocks like veg oils, used cooking oils, tallow, etc., apart from ethanol. The overall biofuel basket gets enlarged”.
Jatin Kothari, Senior Executive Officer, The Ugar Sugar Works Ltd., said that for ethanol manufacturers, the development creates a strategic, long-term demand opportunity beyond the E20 petrol program.
“Over time, this can help absorb surplus ethanol capacity while opening up a new, high-value demand vertical for the sector,” Kothari said.
Pricing mechanism will be critical
He added that the opportunity is technology- and capital-intensive. Hence, pricing mechanisms will play a critical role, and there is a possibility of premium realisation linked to SAF demand and carbon incentives.
Jitendra Chavan, Managing Director, Shahu Sugar Mill, said that this decision marks an important step toward ethanol blending via sustainable aviation fuel, enabling better plant capacity utilisation and growth for the ethanol industry.”
