India Plans 5% Sustainable Aviation Fuel Blend for Domestic Flights by 2030

India is poised to implement a mandate requiring a blend of 5% Sustainable Aviation Fuel (SAF) for domestic flights by the year 2030, with plans to increase this target to 15% by 2040. This initiative is outlined in a recent report published by Deloitte in collaboration with the Indian Sugar & Bio-Energy Manufacturers Association (ISMA). The anticipated demand for domestic SAF is projected to reach nearly 100 crore litres by 2030 and escalate to 600 crore litres by 2040.

The country’s capacity to support this transition is underpinned by its rich feedstock resources, which include used cooking oil, agricultural residue, sugarcane, maize, and various biomass sources. These materials not only position India to fulfill its internal SAF requirements but also present opportunities for the nation to become a significant exporter in the global market. The report suggests that India could generate between 2,450 crore and 3,100 crore litres of SAF annually by 2040.

Currently, India has established SAF blending mandates exclusively for international flights, starting with 1% by 2027, 2% by 2028, and reaching 5% by 2030. As of now, there have been no official targets set for domestic flights, making the proposed mandates a significant shift in policy aimed at decarbonizing the aviation sector.

Strategic Developments in SAF Production

Supporting this transition to a more sustainable aviation industry, Indian Oil Corporation (IOC) is set to begin the production of SAF derived from used cooking oil at its Panipat refinery. The refinery is expected to commence operations in December 2025, with an annual production capacity of 35,000 tonnes. The raw materials for this production will be sourced from notable hospitality chains, including ITC and Haldiram’s.

Blending SAF with conventional aviation turbine fuel (ATF) has been shown to significantly reduce greenhouse gas emissions, potentially achieving reductions of up to 80% compared to traditional jet fuel. With a robust feedstock base and an expanding aviation sector, India is well-positioned to emerge as a leader in the global SAF market.

The establishment of these blending mandates reflects a broader commitment to sustainable energy practices and the reduction of carbon footprints across industries, particularly in aviation. As the world increasingly turns its attention to climate change and environmental sustainability, India’s developments in SAF present a critical opportunity to not only meet domestic demands but also to play a pivotal role in the global transition towards greener aviation.