In a significant move to accelerate India’s transition towards cleaner fuels, the Centre has permitted the blending of ethanol in aviation turbine fuel (ATF). The decision was formalised through a notification issued by the Ministry of Petroleum and Natural Gas.
The notification amends the Aviation Turbine Fuel (Regulation of Marketing) Order, 2001, redefining ATF as a “mix of hydrocarbons that can also include synthesised components, as per Indian standards.”
This change paves the way for the inclusion of ethanol and other bio-based components in jet fuel.
The policy shift is expected to provide a major boost to the adoption of Sustainable Aviation Fuel (SAF) in the country. Currently, Indian airlines operate on conventional ATF without any blending of biofuels.
The government has laid out a roadmap for SAF adoption, targeting 1% blending by 2027, 2% by 2028, and 5% by 2030, in line with global goals set by the International Civil Aviation Organization (ICAO).
The move is also aimed at reducing India’s heavy dependence on crude oil imports, which currently meet over 85% of the country’s fuel demand. Lower reliance on imports could help shield the economy from global geopolitical disruptions, such as recent supply concerns arising from tensions in West Asia.
While SAF remains more expensive than traditional jet fuel, its use is seen as a crucial step towards decarbonising the aviation sector. Industry experts note that SAF can significantly reduce emissions without affecting aircraft performance or safety.
The International Air Transport Association (IATA) has also advocated prioritising biofuels for aviation, highlighting that alternative solutions like electrification are more viable for road transport, making SAF essential for reducing aviation emissions.
The Indian private sector is already bullish on the SAF segment. TruAlt Bioenergy has announced plans to establish one of the world’s largest sustainable aviation fuel (SAF) plants in India.
CBG major GPS Renewables has collaborated with CSIR to develop India’s first commercial-scale production of Sustainable Aviation Fuel (SAF) from ethanol. Similarly, green tech major Honeywell has partnered GPS Renewables and NTPC to bolster SAF in India.
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