India has the potential to produce 8-10 million tonnes of Sustainable Aviation Fuel (SAF) by 2040, and investments worth USD 70-85 billion will be required to achieve the projected production, according to a report.

In the report released on Tuesday, leading consultancy Deloitte India said the 8-10 million tonnes production of SAF would surpass the country’s estimated domestic demand of 4.5 million tonnes for a 15 per cent blending mandate in 2040 across all flights.

The expected scenario could also position India as a leading SAF exporter serving global markets.

“Investments worth Rs 6-7 lakh crore (USD 70-85 billion) would be required to realise the projected SAF production capacity. It will give impetus to the aviation sector’s decarbonisation efforts, reducing carbon emissions to 20-25 million tonnes annually,” the report said.

India is one of the world’s fastest-growing civil aviation markets, and efforts are going on to decarbonise the sector.

According to the report, the projected capital investment of Rs 6-7 lakh crore will also help create 1.1-1.4 million jobs across the value chain and reduce crude oil import bills by USD 5-7 billion annually.

“Further, SAF production can boost farmers’ income by 10-15 per cent by using agricultural residue as feedstock, providing a sustainable alternative to the current practice of burning crop waste,” it added.

The country’s estimated surplus of 230 million tonnes of agricultural residue will be a crucial resource for producing SAF. It will serve as a vital feedstock for ethanol (2G) production, a key component in the Alcohol-to-Jet (AtJ) technology pathway for SAF manufacturing.

Ethanol (2G or second generation) is produced from other non-food feedstock apart from molasses.

At the same time, the report said, the AtJ route with ethanol (1G) produced from sugar and grain can provide an initial boost until the technology fully matures.”Municipal Solid Waste (MSW) and Used Cooking Oil (UCO) will contribute to the overall potential. Alternate feedstock such as sweet sorghum, seaweed and industrial waste can give further impetus to SAF potential with technological maturity,” it noted.

Prashanth Nutula, Partner at Deloitte India, said the drive to produce SAF is quickly becoming a reality globally and in India. With a 2-3 per cent share in the global ATF market, India is favourably positioned in the global aviation fuel market, including SAF. Moreover, India also emerges as a competitive geography due to its proximity to airline hubs in the Middle East and Europe and favourable cost structures. As a result, India is poised to play a pivotal role as global demand for SAF surges, Prashanth Nutula, Partner at Deloitte India, said.