Sustainable Aviation Fuel (SAF): Why It Matters for Air India, IndiGo, SpiceJet and the Future of Green Aviation in India
- Prateek

- 3 days ago
- 8 min read
India’s aviation sector is facing one of its toughest operational and financial phases in recent years. Major Indian airlines including Air India, IndiGo and SpiceJet have warned that they are on the verge of “stopping operations” unless the government urgently intervenes to address soaring fuel costs and operational challenges.
The crisis is being driven by two major factors simultaneously:
Rising Aviation Turbine Fuel (ATF) prices
Longer international flight routes caused by war-related airspace restrictions
In this backdrop, Sustainable Aviation Fuel (SAF) has emerged as one of the most important long-term solutions for the global aviation industry. SAF is increasingly being viewed as a cleaner, more sustainable, and economically strategic alternative to conventional jet fuel.
What is Sustainable Aviation Fuel (SAF)?
Sustainable Aviation Fuel (SAF), also known as aviation biofuel, is a renewable fuel produced from sustainable feedstocks. Its chemical composition is similar to conventional Aviation Turbine Fuel (ATF), which is derived from crude oil.
One of the biggest advantages of SAF is that it is a “drop-in fuel.” This means it can be blended directly with conventional jet fuel without requiring any modifications to:
Existing aircraft
Jet engines
Airport fuelling infrastructure
Airline operational systems
Because of this compatibility, SAF is considered one of the fastest and most practical pathways to reduce aviation emissions globally.
Why Sustainable Aviation Fuel is Important for India’s Aviation Industry
India is one of the fastest-growing aviation markets in the world. However, the country is heavily dependent on imported crude oil for aviation fuel requirements. This creates major vulnerabilities whenever global oil prices rise or geopolitical tensions disrupt supply chains.
SAF becomes important because it can help India:
Reduce dependence on imported crude oil
Lower aviation-related greenhouse gas emissions
Improve long-term energy security
Stabilise airline operating costs
Support India’s climate commitments
Create green jobs in the biofuel and renewable energy sectors
As airlines struggle with expensive ATF prices, SAF offers a strategic alternative that can gradually reduce exposure to volatile global oil markets.
Types of Sustainable Feedstocks Used to Produce SAF
Sustainable Aviation Fuel can be produced from a wide range of renewable and waste-based materials. These feedstocks are environmentally sustainable and help convert waste into usable aviation fuel.
Oils and Fats Used in SAF Production
SAF can be produced from:
Used Cooking Oil (UCO)
Algae oils
Oil-rich plant seeds
Animal fats
These materials are processed and refined into aviation-grade biofuel.

Municipal Solid Waste (MSW) as Aviation Fuel Feedstock
Urban waste and municipal solid waste can also be converted into Sustainable Aviation Fuel. This helps solve two major problems simultaneously:
Waste management
Clean fuel generation
Waste-to-fuel technology is becoming increasingly important for sustainable urban development.
Agricultural and Forestry Residues for SAF Production
Agricultural and forestry waste materials are among the most promising SAF feedstocks in India because of the country’s large agricultural economy.
Examples include:
Wood waste
Sugarcane bagasse
Corn stover
Husks
Straw
Sugars
Starches
India’s massive agricultural residue availability gives the country a strong advantage in scaling SAF production.
Different Methods Used to Produce Sustainable Aviation Fuel
There are several technological pathways used to produce SAF. Each method uses different combinations of raw materials and processing technologies.
The most common SAF production technologies include:
HEFA (Hydroprocessed Esters and Fatty Acids)
Fischer-Tropsch synthesis
Alcohol-to-Jet (ATJ)
Gasification-based pathways
Different countries and companies adopt methods based on feedstock availability, infrastructure, and economic feasibility.
Major Benefits of Sustainable Aviation Fuel (SAF)
Up to 80% Reduction in Greenhouse Gas Emissions
SAF can reduce lifecycle greenhouse gas (GHG) emissions by up to 80% compared to conventional jet fuel.
This makes SAF one of the most effective tools for aviation decarbonisation.
SAF Can Deliver More Than 60% of Aviation Decarbonisation Goals
Experts estimate that more than 60% of global aviation decarbonisation efforts may come from SAF adoption alone.
Since aviation is one of the hardest sectors to electrify, SAF is currently considered the most realistic large-scale solution.
No Aircraft or Engine Modifications Required
Unlike some alternative fuels, SAF works with existing aircraft fleets and fuelling infrastructure.
This reduces adoption barriers significantly for airlines worldwide.
Better Energy Security for India
India imports a large share of its crude oil requirements. By producing SAF domestically from waste and agricultural residues, the country can:
Reduce fuel imports
Strengthen energy independence
Improve fuel supply resilience
Employment Generation and Green Economy Growth
Large-scale SAF adoption can create employment opportunities in:
Biofuel production
Waste management
Agriculture
Renewable energy
Fuel logistics
Refinery operations
This supports India’s broader green economy ambitions.
Key Challenges Facing Sustainable Aviation Fuel Adoption
Despite its advantages, SAF adoption still faces major challenges globally and in India.
High Production Cost of SAF
Currently, SAF costs more than double conventional aviation fuel in many markets.
This makes large-scale adoption difficult for airlines already struggling with profitability pressures.
Without government incentives or subsidies, airlines may eventually pass higher costs to passengers.
Need for New Infrastructure Investment
Widespread SAF adoption requires investment in:
Production plants
Storage systems
Fuel blending facilities
Transportation infrastructure
These initial infrastructure costs remain a major barrier.
Feedstock Availability Challenges
Although India has abundant agricultural waste, feedstock availability can still vary seasonally.
Different regions also produce different types of biomass, making supply chain management complex.
Ensuring year-round, large-scale feedstock supply remains a challenge for commercial SAF production.
ISCC CORSIA Certification and Global SAF Compliance Framework
The International Sustainability and Carbon Certification (ISCC) CORSIA framework is one of the most important global compliance systems for Sustainable Aviation Fuel.
CORSIA stands for:
Carbon Offsetting and Reduction Scheme for International Aviation
It is designed to help the global aviation industry reduce carbon emissions.
SAF-certified fuel is expected to become a critical compliance tool for airlines worldwide.
Mandatory Global CORSIA Phase Starting in 2027
Beginning in 2027, airlines globally will be required to offset CO₂ emission growth beyond 2020 levels under the mandatory CORSIA phase.
This is expected to significantly increase global demand for Sustainable Aviation Fuel.
India’s SAF Blending Targets
India has also started setting SAF blending goals.
According to proposed targets:
1% SAF blending for international flights by 2027
2% SAF blending by 2028
Domestic SAF mandates expected later
These targets are expected to accelerate investment in India’s SAF ecosystem.
IOC Panipat Refinery: India’s First Major Commercial SAF Project
Indian Oil Corporation (IOC) became the first Indian company to receive ISCC CORSIA certification at its Panipat refinery.
The refinery is expected to begin commercial SAF production using Used Cooking Oil (UCO) by December 2025.
This marks a major milestone for India’s clean aviation fuel transition.
Sustainable Aviation Fuel vs Hydrogen Fuel Cells: Which is Better?
As India pushes toward greener transportation systems, another emerging technology is Hydrogen Fuel Cells (HFCs).
What are Hydrogen Fuel Cells?
Hydrogen Fuel Cells generate clean electricity by converting the chemical energy stored in hydrogen into electrical energy.
The main components of an HFC include:
Membrane Electrode Assembly (MEA)
Bipolar plates
Hydrogen fuel systems are already being explored for buses, trucks, railways, and future aviation technologies.
Difference Between SAF and Hydrogen Fuel Cells
Feature | Sustainable Aviation Fuel (SAF) | Hydrogen Fuel Cells (HFCs) |
Fuel Type | Bio-based liquid fuel | Hydrogen-based electric system |
Aircraft Compatibility | Works with existing aircraft | Requires new aircraft systems |
Infrastructure Requirement | Moderate upgrades | Major infrastructure overhaul |
Commercial Readiness | Available today | Still developing for aviation |
Emission Reduction | Up to 80% | Near-zero emissions |
Scalability | Easier short-term scaling | Long-term future solution |
Currently, SAF is considered the most practical immediate solution for reducing aviation emissions, while hydrogen aviation remains a long-term technological goal.

Future of Sustainable Aviation Fuel in India
India has strong potential to become a major global SAF producer because of:
Large agricultural residue availability
Growing biofuel ecosystem
Expanding aviation market
Government renewable energy initiatives
However, large-scale success will depend on:
Policy support
Financial incentives
Feedstock supply chains
Infrastructure investment
Airline participation
Public-private collaboration
If implemented effectively, Sustainable Aviation Fuel could transform India’s aviation industry by reducing emissions, improving energy security, and supporting long-term economic sustainability.
Sustainable Aviation Fuel (SAF) is rapidly emerging as the most viable solution for cleaner and greener aviation. At a time when Indian airlines are struggling with rising ATF prices and geopolitical disruptions, SAF offers both environmental and economic advantages.
Although challenges such as high production costs and infrastructure limitations remain, India’s early policy initiatives and refinery projects indicate that the country is preparing for a major transition toward sustainable aviation.
With global climate regulations becoming stricter and aviation emissions under increasing scrutiny, SAF is expected to play a central role in the future of international air travel.
FAQs on Sustainable Aviation Fuel (SAF)
Q 1. What is Sustainable Aviation Fuel (SAF)?
Answer. Sustainable Aviation Fuel (SAF) is a cleaner alternative to traditional jet fuel made from sustainable feedstocks such as Used Cooking Oil (UCO), agricultural waste, municipal solid waste, algae oils, and animal fats. SAF has similar chemical properties to conventional Aviation Turbine Fuel (ATF), allowing it to be used in existing aircraft engines without modifications.
Q 2. What is Sustainable Aviation Fuel made from?
Answer. SAF is produced from renewable and waste-based feedstocks including:
Used Cooking Oil (UCO)
Algae oils
Animal fats
Agricultural residues
Sugarcane bagasse
Corn stover
Straw and husks
Municipal Solid Waste (MSW)
Forestry waste
These materials are processed into aviation-grade biofuel.
Q 3. Can Sustainable Aviation Fuel replace conventional jet fuel completely?
Answer. Currently, SAF is mostly blended with conventional jet fuel rather than fully replacing it. However, aviation experts believe SAF could eventually become a major component of global aviation fuel as production capacity and technology improve.
Q 4. Is Sustainable Aviation Fuel environmentally friendly?
Answer. Yes. Sustainable Aviation Fuel is considered environmentally friendly because it significantly reduces carbon emissions and uses renewable waste-based materials instead of fossil fuels.
SAF also helps reduce waste pollution by converting used oils, agricultural residues, and municipal waste into usable aviation fuel.
Q 5. How much can SAF reduce aviation emissions?
Answer. SAF can reduce lifecycle greenhouse gas emissions by up to 80% compared to traditional aviation fuel, depending on the feedstock and production process used.
This makes SAF one of the most effective tools for decarbonising the aviation sector.
Q 6. Does SAF require new aircraft engines?
Answer. No. SAF does not require any changes to aircraft engines, fuelling systems, or airport infrastructure. This is one of the biggest advantages of Sustainable Aviation Fuel over many alternative aviation technologies.
Q 7. Which countries are leading in Sustainable Aviation Fuel production?
Answer. Countries leading in SAF development include:
United States
United Kingdom
Singapore
Netherlands
Germany
France
India
These countries are investing heavily in green aviation technologies and SAF infrastructure.
Q 8. What is India doing to promote Sustainable Aviation Fuel?
Answer. India is promoting SAF through:
National biofuel initiatives
SAF blending targets
Refinery infrastructure development
ISCC CORSIA certification programs
Public-private clean energy partnerships
India plans to introduce:
1% SAF blending by 2027
2% SAF blending by 2028 for international flights
Q 9. What is ISCC CORSIA certification?
Answer. ISCC CORSIA is an international certification system that ensures Sustainable Aviation Fuel complies with global aviation carbon reduction standards under the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA).
This certification is important for commercial SAF production and international airline compliance.
Q 10. Which Indian company received India’s first ISCC CORSIA certification?
Answer. Indian Oil Corporation (IOC) became the first Indian company to receive ISCC CORSIA certification at its Panipat refinery.
The company plans to begin commercial SAF production by December 2025.
Q 11. Can SAF help reduce airline ticket prices?
Answer. In the short term, SAF may increase operational costs because production remains expensive. However, over the long term, domestic SAF production could help stabilise fuel costs and reduce dependence on imported crude oil, potentially improving airline economics.



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