India's Sustainable Aviation Fuel Export Potential and Economic Benefits by 2040
Key Ideas
  • India has the potential to become a key exporter of sustainable aviation fuel, with estimates of producing 8-10 million tonnes by 2039-40.
  • Investing ₹6-7 trillion towards this effort could create over a million jobs, reduce oil import bills by $5-7 billion annually, and increase farmers' income by 10-15%.
  • The use of agricultural residue for fuel production could offer an alternative to burning crop waste, contributing to environmental sustainability.
  • India's current status as a net exporter of aviation turbine fuel and the abundant feedstock position the country well to capitalize on the global demand for sustainable aviation fuel.
A report by consulting firm Deloitte has outlined India's potential to emerge as a significant exporter of sustainable aviation fuel by producing 8-10 million tonnes by the fiscal year 2039-40. The investment required for this endeavor is projected to be around ₹6-7 trillion. This move is not only expected to boost the country's economy but also create more than a million jobs, reduce oil import bills by an annual $5-7 billion, and enhance farmers' income by 10-15% through the utilization of agricultural residue for fuel production, thus tackling the issue of crop waste burning. The concept of sustainable aviation fuel involves using biofuel produced sustainably from sources like used oil and agricultural residues or synthetically through processes capturing carbon directly from the air. Despite the current lower percentage of sustainable aviation fuel used by Indian airliners compared to Deloitte's estimates, the report highlights the growth prospects of the Indian aviation industry due to various factors like infrastructural investments and evolving traveler preferences. Deloitte also emphasized the importance of adopting new technologies such as hydrogen fuel and electric aircraft to achieve global aviation decarbonization goals. In addition, the report mentioned the increasing popularity of 'green fares', indicating a willingness among passengers to opt for sustainable travel options despite higher costs. However, to fully leverage the potential of sustainable aviation fuel exports, India needs to address regulatory challenges and accelerate investments in certification agencies. The report also underlined the European Union's aggressive blending targets for sustainable aviation fuel, setting a precedent for global sustainability efforts in the aviation sector.
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