Sustainable jet fuel tough for Indian airlines: Boeing

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Mint. “The airlines are certainly very eager to purchase more SAF, but some Indian airlines are the most price-sensitive anywhere in the world. Therefore, the challenge is to bring the cost of sustainable aviation fuel down because it currently is at 300-500% of traditional jet fuel." SAF is any fuel with properties similar to those of conventional jet fuel, but with lower carbon emissions.

Currently, aviation turbine fuel or jet fuel sells for ₹84,855- 99,793 per kilolitre in metro cities. The government should work on a smart policy framework and support all stakeholders to promote the use of SAF, he said. “One of the biggest recommendations is to invest in SAF with smart policies that will help de-risk and close the green premium." The Indian government is contemplating issuing a directive, making it mandatory for all airlines to use blended SAF by 2025.

Also, it is formulating a framework that may enforce a phased implementation of green fuel use by Indian airlines, starting with 1% green fuel by 2025, and 5% by 2030. While different regions of the world are using different policy mechanisms in green fuel usage, an incentive-based approach has worked well in US, Moran said. “The reality is that today a vast majority of SAF production in the world occurs in California, and soon it will happen in other states of the US, because that’s where tax incentives are closing the green premium.