Sustainable aviation fuel may cost triple conventional jet fuel: India

Sustainable aviation fuel, produced from non-petroleum feedstocks including biomass and waste materials, is gaining traction globally as the aviation sector seeks to reduce its environmental footprint. According to India's draft policy framework, SAF could command a price premium of 200 to 300 percent above conventional jet fuel, potentially adding substantial costs to airline operations across South Asia.

The fuel's environmental benefits are well-documented. By utilizing renewable and waste-based feedstocks, SAF significantly reduces aviation-related air pollution and carbon emissions compared to traditional petroleum-derived jet fuel. This positions the alternative fuel as a critical tool in meeting international climate commitments and reducing the aviation industry's greenhouse gas contributions.

The pricing disparity outlined in India's draft policy reflects the current state of SAF production, which remains in nascent stages compared to the mature conventional fuel industry. Limited production capacity, higher processing costs, and smaller economies of scale currently make SAF more expensive to produce and distribute. As production technologies mature and supply chains develop, costs are expected to decline.

India's exploration of SAF policy comes amid global momentum toward sustainable aviation. Airlines, manufacturers, and governments worldwide are investing in alternative fuels to meet environmental targets while maintaining flight operations. The Indian aviation sector, one of Asia's fastest-growing, faces pressure to balance expansion with environmental responsibility.