In a step towards achieving energy self-reliance, the government is looking at making the use of sustainable aviation fuel (SAF) mandatory.
The move is also expected to reduce the carbon emissions of the country as it aims towards meeting the net-zero target by 2070.
Moneycontrol takes a look at the government’s ambitious plans to boost SAF consumption in the country.
What is SAF?
Globally, the aviation sector contributes to around 12 per cent of carbon dioxide emissions from transportation. SAF could help reduce these emissions, as compared to conventional jet fuel.
SAF is a fuel made from non-petroleum products, including ethanol, which has similar properties to jet fuel but with much lesser carbon footprints. For instance, last year, low-cost carrier AirAsia made history, when it operated a commercial passenger flight, using SAF-blended aviation turbine fuel (ATF).
What are the targets set by the government for SAF?
The government is yet to set rigorous blending targets for ATF. However, Union Minister for Oil and Natural Gas, Hardeep Singh Puri, has said that the government aims to achieve 1 per cent SAF blending in jet fuel by next year.
Puri has said that India would require around 14 crore litres of SAF per year for 1 percent SAF blending The corresponding annual requirement for 5 per cent will be 70 crore litres of SAF.
The government expects SAF — produced from sugarcane molasses — to reduce greenhouse gas emissions by up to 80 per cent, as compared to conventional jet fuel.
By the SAF initiative, the government also expects to boost the rural economy and help farmers to get additional income. By 1 per cent SAF blending, more than five lakh farmers could be benefitted by supplying sugarcane as feedstock. The move promises to create over over one lakh green jobs.
What's the Ethanol story?
The government has been successful in achieving higher blending of ethanol in petrol. The oil ministry data showed that India reached blending of ethanol in petrol to the tune of 15.8 per cent in July, as compared to 10 per cent during the same period last year.
The government has revised its target in blending of ethanol in petrol. It has advanced its goal to next year from 2030. Once this target is achieved, the focus is expected to shift on SAF blending in jet fuel. Higher blending could force automakers to alter the configuration of their existing vehicles. The manufacturers don't need to make any change in 20 per cent blending of ethanol in petrol.
Has government undertaken similar initiatives?
The government is looking at substitute measures such as compressed biogas (CBG), renewables, green hydrogen, and natural gas as a transition fuel in a bid meet its net-zero target by 2070.
The government has introduced mandatory blending of compressed biogas in compressed natural gas (CNG) and piped natural gas (PNG). It has said the CBG blending obligation (CBO) would be voluntary till this financial year 2024-25 (FY25), and the mandatory blending obligation would start from the next fiscal. Mandatory blending will be kept as 1 percent, between 3 and 4 per cent of total CNG/PNG consumption for FY26, FY27 and FY28, respectively, it added. The blending is slated to be increased to 5 per cent from FY29 onwards.
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