India has the potential, resources and market demand to become a major player in the Sustainable Aviation Fuel (SAF) market, but it will take coordinated, strategic action across policy, infrastructure, and innovation
Kushaagra Nandan is well versed in the gambit of green energies and is upbeat about India’s leadership role in lowering carbon emission. Here he speaks candidly about India’s quest for green energy — challenges, bottlenecks and solutions — that could take india forward towards green and clean future with India Business & Trade (IBT), in arrangement with The Pioneer. Here are the excerpts.
How is India placed for the global leader in biofuel technology?
India is uniquely positioned to become a global leader in biofuel technology — not just on cost, but through strategic strengths that foster innovation and scale. Our diverse agro-climatic zones demand adaptable, multi-feedstock technologies, which naturally drive R&D and innovation. Combined with India's excellence in engineering, this enables the development of scalable, affordable solutions tailored for both domestic and global markets. Another key advantage is the growing synergy between startups, academia, and policymakers in the clean energy space — creating a dynamic ecosystem for biofuel innovation. With a large and growing domestic market demand for alternate fuels, India is well placed to build and refine biofuel models that are globally relevant.
According to IEA, India is poised to become the fastest growing bioenergy market in the world by 2030, expected to contribute more than a third of global bioenergy demand growth.
Key initiatives like the National Bioenergy Programme, SATAT, GOBARdhan, and advancement in achieving E20 targets along with net-zero objectives through just energy transition reflect India's long-term commitment to clean energy.
At RED, we're contributing to this national mission through our four integrated verticals-T-EPC, project development, feedstock aggregation, and product manufacturing — covering the entire biofuel value chain. As part of our efforts toward India's goal of establishing 5,000 Compressed Biogas (CBG) plants by 2030 under SATAT, we've launched comprehensive engineering solutions for small-scale CBG plants. These solutions aim to bring innovation, quality, and affordability to the forefront of the CBG sector, reinforcing India's potential to export complete project solutions — from technology to financing frameworks.
With E20/E30 blending goals, is India's ecosystem truly ready?
India's E20 rollout marks a significant milestone, signalling strong policy intent and commendable progress by the industry along with the evolving ecosystem to support this transition at scale. However, Engine compatibility remains a key concern, particularly across older segments of the vehicle fleet. At the same time, upgrades are urgently needed across the fuel value chain — especially in storage, logistics, and the widespread availability of multi-grade dispensers. Equally critical is the need to strengthen quality control and monitoring frameworks to ensure fuel consistency and performance. Without this, even the best policy targets risk falling short in implementation. For the transition to be successful, it must be phased and regionally calibrated, with alignment from OEMs, awareness among consumers, and coordination across all stakeholders.
How can biofuel projects become more attractive?
To make biofuel projects more attractive to ESG and institutional investors, it must focus on reducing risk and increasing scalability. Long-term policy stability and clear regulatory frameworks are foundational — they create market confidence allowing certainty and long term visibility to investors.
Standardising key components like plant designs, feedstock contracts, and performance benchmarks will improve bankability and ease due diligence for financial institutions.
Equally important is the availability of blended finance tools-such as green bonds, viability gap funding, and partial risk guarantees — that can help de-risk early-stage investments and lower project costs.
Monetising carbon credits through verified MRV (Monitoring, Reporting, and Verification) systems can unlock additional revenue streams and strengthen project viability. Most critically, we need transparent, ready-to-scale platforms — like the one we're building at RED — that offer integrated techno-financial solutions.
These platforms serve as bridges between clean energy projects and serious capital, enabling investment at scale and speed.
How can biofuel demand empower rural farmers?
Farmers need to be one of the key stakeholders in India's biofuel journey. With the right ecosystem in place, the growing demand for biofuels can transform agri-waste — such as crop residue, bamboo, and other biomass — into a consistent income stream for rural communities.
To make this a reality, we need structured procurement programs that ensure fair pricing and assured offtake.
It is also important to have access to shared infrastructure — like rental balers, mobile chippers, and transport-along with the establishment of village-level collection centres and pre-processing hubs. These measures will not only help monetise crop waste but also will significantly reduce stubble burning and related emissions. At RED, we've already begun enabling this shift. One of our four core verticals is feedstock aggregation, where we collect feedstocks like paddy straw, soya husk, and cane trash for biofuel production. Today, we operate more than 56 round balers making us the largest aggregation fleet operator and service provider in the country.
I strongly believe that by making farmers one of the primary stakeholders-not just suppliers — we can create a model where clean energy and rural prosperity go hand in hand.
Can digital technologies transform the biofuel value chain?
Yes, I believe digital technologies will play a pivotal role in transforming the biofuel value chain. AI can help in forecasting biomass availability by analysing weather patterns, cropping cycles, and market data-allowing for smarter planning. IoT sensors installed in digesters offer real-time insights into feedstock quality, system performance, and yield efficiency, enabling predictive maintenance and minimising downtime. Blockchain, too, is proving valuable by ensuring transparency and traceability in feedstock sourcing and carbon credit validation.
At RED, we're actively embracing this digital shift. We're deploying drone-based baling audits and digital plant dashboards that are streamlining operations, improving visibility, and driving better decision-making across the value chain.
Can India emerge as a global SAF supplier?
India has the potential, resources and market demand to become a major player in the Sustainable Aviation Fuel (SAF) market, but it will take coordinated, strategic action across policy, infrastructure, and innovation. A Deloitte India report highlights that India generates 230 tonnes of agricultural residue, a resource that can be channeled into SAF production. Combined with waste oils, this positions India strongly on the raw material front.
However, to match the momentum of regions like the US and EU — where robust mandates and incentives are already in place — India needs policy mandates for SAF blending in domestic aviation, along with investments in technology, refining capacity, certification mechanisms, and sustained R&D.
Public-private partnerships, access to enabling finance and export-friendly frameworks, will be key to unlocking India's role in the global SAF supply chain.
How can India ensure credibility in its biofuel sustainability claims?
Sustainability in biofuels must be transparent and led by science. Mandating lifecycle emission assessments, encouraging third-party certifications, and using non-edible, waste-based feedstocks are key. Further, investments in zero-liquid discharge and water recycling systems in manufacturing units will help reduce water usage. I believe that all sustainability initiatives undertaken should be verifiable, auditable and a core part of business operations.
(Kushaagra Nandan is Chairman, The Nandan Group; Co-Founder, Chairman & MD, REnergy Dynamics (RED); Co-Founder, SunSource Energy and Co-Chairman ASSOCHAM UP State Development Council)