India Could Produce SAF 40% Cheaper Than Global Rates: Report

India has the potential to become one of the world’s lowest-cost producers of Sustainable Aviation Fuel (SAF), with production costs estimated to be around 40 per cent lower than current global benchmarks, according to a new report by the India Energy and Climate Center (IECC). The study attributes this advantage primarily to India’s abundant agricultural residues and rapidly falling solar energy costs.

The report notes that crop residues, which are often burned in fields, could serve as a major feedstock for SAF production, while low-cost renewable electricity can significantly reduce the cost of green hydrogen required in advanced fuel pathways. Together, these factors could enable India to produce SAF at substantially lower prices than many international markets, strengthening the country’s position in the emerging global aviation fuel sector.

With global airlines facing increasing pressure to reduce carbon emissions, demand for SAF is expected to rise sharply over the coming decades. The report suggests that India could not only meet its domestic SAF blending requirements but also emerge as a major exporter, creating new opportunities for farmers, renewable energy developers and the biofuel industry. However, scaling up production will require supportive government policies, investment in processing infrastructure and efficient feedstock supply chains.