New Delhi: India could position itself as a regional exporter of sustainable aviation fuel (SAF) once it meets domestic demand, according to a knowledge paper released at the India SAF Conclave 2025 on Monday. The report, titled “SAF Samarthya – The opportunity of AtJ SAF in India”, marks one of the first industry-backed assertions that India’s role in the global aviation fuel transition may extend beyond consumption to export leadership.
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The paper notes that while the government has already set SAF blending targets of 1 percent by 2027 and 5 percent by 2030 for international flights, the abundant feedstock base and developed ethanol ecosystem could enable production volumes well in excess of domestic needs. “After meeting domestic demand, India could position itself as a regional exporter to markets with binding SAF requirements,” the report says.
India produces over 500 crore litres of ethanol annually and generates more than 400 million tonnes of surplus biomass every year, including agricultural residues, forestry waste, and municipal solid waste. This resource pool, coupled with the country’s low-cost renewable power, gives India a competitive edge in scaling Alcohol-to-Jet (AtJ) fuel production.
The knowledge paper draws a parallel with the Ethanol Blending Programme (EBP), which helped India move from 1.5 percent petrol blending in 2014 to 20 percent in 2025, five years ahead of schedule. The same logistics networks, pricing mechanisms and procurement systems used by oil marketing companies for ethanol can be repurposed to support SAF production and distribution.
Several companies are already investing in capacity and technology to prepare for this transition. Indian Oil Corporation’s Panipat refinery recently became the first domestic player to secure ISCC-CORSIA certification, targeting 35,000 tonnes of SAF by 2025. Praj Industries, in collaboration with LanzaJet, has commissioned a 1 kilolitre per day AtJ demonstration facility in Pune, while TruAlt Bioenergy is planning a 15–20 KTPD commercial plant in Belagavi, Karnataka.
Industry experts see these developments as the foundation for scaling up production not just for India’s aviation sector but also for export markets in the EU, UK and US, where binding SAF mandates are tightening and demand is expected to outstrip local supply.
The report also recommends a suite of policy instruments to make exports viable, including Viability Gap Funding of Rs 150 crore per project, production-linked incentives, CAPEX subsidies, concessional finance, and a dedicated SAF fund. It argues that replicating the financial de-risking that enabled India’s ethanol success is critical to building a globally competitive SAF industry.
With its fast-growing aviation sector — expected to field 1,600 aircraft by 2030 and 2,200 by 2035 — India is already one of the largest potential SAF markets. But by leveraging surplus feedstock and ethanol infrastructure, the country could move beyond self-sufficiency to emerge as a regional hub for SAF exports, the report concludes.
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“This marks a shift in ambition — India is no longer talking only about meeting its climate targets. It is eyeing a leadership role in global SAF supply,” the paper underlined.