India is likely to shift to ethanol-blended aviation fuel by mid-2027, gradually ramping it up in phases, with the addition of more than two dozen distilleries supported by federal biofuel incentives, an official familiar with the details said on Sunday, reported Hindustan Times.
The country, which has the world’s third-largest aviation market, is aiming to introduce 1% ethanol blending in jet fuel by 2027, raise it to 2% in 2028 and further to 5% by 2030. Union Minister of State for Civil Aviation Murlidhar Mohol had shared these targets in Parliament earlier this month.
India has already carried out trial flights using cleaner aviation fuel. In March 2023, Air Vistara, which has since merged with Air India, operated a long-haul Boeing 787 flight from the United States to India using fuel blended. In the same year, Air Asia flew the country’s first commercial domestic flight between Pune and Delhi with a fuel blend.
According to the news report, a long-pending policy on sustainable aviation fuel is likely to be released for public consultations next month, the official said, requesting anonymity.
International Civil Aviation Organization (ICAO) has adopted Carbon Offsetting & Reduction Scheme for International Aviation (CORSIA) as a global market-based measure to reduce emissions from international aviation which require offsetting of emissions above a baseline value. Airlines can either use SAF or offset their emissions by purchasing carbon credits from ICAO approved Emissions Unit Programmes. SAF offers a direct pathway to emission reduction by lowering the lifecycle carbon footprint of aviation fuel. When airlines adopt CORSIA Eligible SAF (CORSIA Eligible Fuel) certified against ICAO’s sustainability standards and verified through Monitoring, Reporting, and Verification (MRV), they can claim these reductions as substitutes for carbon credits, thereby decreasing their offsetting obligations under the scheme.
The Centre is supporting biofuel projects through the Pradhan Mantri JI-VAN Yojana, which provides financial assistance for setting up plants, including those producing aviation fuel.
Under the scheme, the government offers interest support for five years, including a one-year repayment break, on loans taken to set up new ethanol distilleries. The support covers interest up to 6% per year or half of the bank’s lending rate, whichever is lower.
Various companies/PSUs namely Indian Oil Corporation Limited, Bharat Petroleum Limited, Hindustan Petroleum Limited, Mangalore Refinery and Petrochemicals Limited, CSIR Indian Institute of Petroleum, Chennai Petroleum Corporation Limited, Indian Institute of Petroleum etc. are currently working on SAF production/research.
