NANDINI CONSULTANCY CENTER
CHEMICAL INDUSTRY
INSIGHTS
SAF -- A BIOFUEL
INSIGHT AND ANALYSIS
FOR THE CHEMICAL INDUSTRY
WWW.NANDINICHEMICAL.COM
MAR, 2024
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SAF -- A BIOFUEL
SAF is a biofuel, used for powering aircraft. It has similar properties to conventional jet fuel
but with a smaller carbon footprint.
SAF can reduce life cycle of GHG emissions dramatically compared to conventional jet fuel.
Some typical feed stocks used are sugarcane, agri residue, used cooking oil etc.
International Civil Aviation Organization (ICAO) defines sustainable aviation fuels (SAF) as
renewable or waste-derived aviation fuels that meets ICAO’s sustainability criteria. SAF can
be blended at different levels depending on the characteristic of the SAF produced.
Government of India may roll out the policies for SAF soon, as it plans one per cent SAF
blending mandate by 2025 focused on the sugarcane ATJ (Alcohol to Jet) pathway.
Eventually, the mandated target could reach 50 per cent in the medium to long term.
Approved technologies are available and new and efficient technologies are evolving across
the globe. India is blessed with a variety of feedstocks (both sugar, starch, and
lignocellulosic) in abundance. These feedstocks are the basic ingredients for SAF production
via the Alcohol-to-Jet (ATJ) pathway. There are nine pathways already approved and
certified by ASTM globally.
For India, the ATJ is the preferred pathway because of the substantial availability of ethanol
with supportive policies and an ecosystem well established with the Ethanol Blending
Program in action. Under the ATJ pathway, multiple alcohol like ethanol, isobutanol, etc.,
can be converted into SAF.
In India, blending 1 per cent SAF (via ATJ pathway) with the jet fuel would require around
15 crore litres of SAF and about 30 crore litres of ethanol as feedstock.
With growing ethanol production capacities for meeting the E20 mandate and the availability
of sufficient feedstock, ethanol requirement for SAF production may not be a stumbling
block. Producing the fuel is one part, creating the eco-system is another and then comes
the pricing of this fuel. A clear and firm long-term policy is necessary for the SAF growth in
India.
The expectation from the government would be to come up with a definite pricing
framework. For some early projects, special pricing, or viability gap funding (VGF) is
required.
Similarly, clarity on offtake agreements, take or pay agreements, would help participating
stakeholders make concrete investments and decisions in the SAF sector.
Globally the SAF cost is about 2-3 times that of jet or aviation turbine fuel. This is largely
due to the high prices of the feedstock i.e., low CI ethanol, which is the main contributor to
the cost of SAF production via the ATJ pathway.
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SAF -- A BIOFUEL
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