India’s Aviation Opportunity: Turning Agricultural Residue And Low-Cost Solar Into Competitive Sustainable Aviation Fuel With Power-And-BioMass-To-Liquids

July 22, 2026

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(Energy Innovation) This report, co-authored with India Energy & Climate Center at UC Berkeley's Goldman School of Public Policy, examines how India can turn agricultural waste and low-cost green hydrogen into sustainable aviation fuel (SAF) through a power-and-biomass-to-liquids (PBtL) industry.

India faces several threats from its rapid development, including increasing reliance on imported crude oil, worsening air pollution from agricultural residue fires, and rising greenhouse gas emissions from its aviation sector. However, India also has emerging advantages in its world-leading low-cost green hydrogen and development of large-scale agricultural residue supply chains.

This paper provides a vision for how India can leverage these advantages to develop a power-and-biomass-to-liquids (PBtL) sustainable aviation fuel (SAF) industry that can deliver a domestic cost-competitive drop-in alternative to imported crude oil-dependent fossil jet fuel, create value from agricultural residue that is currently burned, and decarbonize India’s aviation sector.

We show that PBtL is ready for commercial demonstration and growth, outcompetes other SAF technologies on cost, carbon intensity, and resource efficiency, and delivers a range of co-benefits such as avoiding premature deaths from local air pollution. Specifically, India’s PBtL route can produce SAF at costs up to roughly 40% below global SAF benchmarks, driven by record-low green hydrogen prices and low agricultural residue costs.

These results suggest that, until Indian PBtL SAF can compete directly with fossil jet fuel, it can economically serve rising international SAF demand while hedging against crude oil price spikes.

We also show that PBtL SAF has an enormous market size and could feasibly satisfy all of India’s 2050 aviation demand; that PBtL SAF production costs can fall below fossil jet fuel prices in the 2030s or earlier depending on market conditions and policy developments; and that domestic PBtL SAF has less monetary risk exposure than fossil jet fuel.

We provide a spatially detailed, district-level assessment showing that surplus agricultural residue availability and low green hydrogen costs align in the areas surrounding the Delhi, Pune, and Mumbai airports, suggesting they may be best suited for supporting the PBtL industry’s near-term growth.

We conclude that if India can drive early investment and use smart policy to overcome first-of-a-kind deployment barriers and protect against unintended consequences, it can unlock a virtuous cycle of scale and cost reduction that boosts India’s self-reliance, public health, and global climate leadership. READ MORE

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India steps up preparations for sustainable aviation fuel, CORSIA compliance ahead of 2027 deadline (DDIndia)
Ram Mohan Naidu Reviews India's Preparedness For SAF & CORSIA Rollout (CNBC India; includes VIDEO)
Union Civil Aviation Minister Ram Mohan Naidu reviews India's preparedness for SAF and CORSIA implementation (Economic Times)
Minister Ram Mohan Naidu reviews India’s preparedness for SAF and CORSIA implementation -- Chairs high-level stakeholder meeting on SAF production, blending roadmap and carbon accounting framework (India Ministry of Aviation)

Excerpt from DDIndia: Union Civil Aviation Minister Ram Mohan Naidu on Wednesday July 29, 2026) reviewed India’s preparedness for the adoption of Sustainable Aviation Fuel (SAF) and implementation of the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA), directing all stakeholders to expedite key action points ahead of the mandatory global compliance deadline beginning January 1, 2027.

Chairing a high-level stakeholder meeting organised by the Ministry of Civil Aviation, Naidu reviewed progress in SAF production, certification, supply chain development and the country’s roadmap for meeting future blending requirements under the International Civil Aviation Organization’s (ICAO) global carbon reduction framework.

The meeting was attended by senior officials from the Ministries of Civil Aviation, Petroleum and Natural Gas, and Environment, Forest and Climate Change, along with representatives from the Directorate General of Civil Aviation (DGCA), Airports Authority of India (AAI), Bureau of Indian Standards (BIS), Bureau of Energy Efficiency (BEE), oil marketing companies, airlines, airport operators and other stakeholders.

During the meeting, officials assessed the status of Sustainable Aviation Fuel production projects being developed by oil marketing companies and reviewed commissioning timelines to ensure adequate fuel availability from 2027 onwards. Discussions also focused on certification standards, supply chain development and measures required to support India’s growing aviation sector while reducing carbon emissions.

Addressing the meeting, Naidu said India views Sustainable Aviation Fuel not merely as a regulatory obligation but as a strategic opportunity to strengthen its aviation ecosystem and contribute to global decarbonisation efforts.

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Naidu said significant progress has already been made in developing the SAF supply chain and carbon accounting systems but directed all concerned agencies to accelerate implementation so that India is fully prepared before the mandatory phase of CORSIA begins in January 2027.

The minister also informed stakeholders that the draft Sustainable Aviation Fuel policy is in its final stages and is being refined through consultations with various ministries and industry participants.

Emphasising that passenger interests remain central to the policy, Naidu said the government aims to ensure that the transition to SAF imposes the least possible financial burden on airlines and travellers by identifying the most cost-effective production, distribution and airport supply mechanisms.

The meeting also reviewed India’s preparedness for CORSIA implementation, including the issuance of Letters of Authorisation and the development of a CORSIA-compliant domestic carbon market framework. READ MORE

Excerpt from CNBC India: India has committed to a 1% Sustainable Aviation Fuel blending mandate in Aviation Turbine Fuel for international flight operations by 2027, rising to 5% by 2030, in a landmark step toward aligning Indian carriers with global net-zero aviation goals.

Union Civil Aviation Minister Ram Mohan Naidu chaired a high-level meeting reviewing India's preparedness for SAF adoption and CORSIA compliance. READ MORE; includes VIDEO

Excerpt from India Ministry of Aviation: The Ministry of Civil Aviation today (July 29, 2026) organized a high-level stakeholder meeting chaired by Minister Ram Mohan Naidu to review India's preparedness for the adoption of Sustainable Aviation Fuel (SAF) and compliance with the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA), the global carbon reduction framework of the International Civil Aviation Organization (ICAO).

The meeting was attended by Secretary (Civil Aviation) and senior officials from the Ministry of Civil Aviation, Ministry of Petroleum & Natural Gas, Ministry of Environment, Forest and Climate Change, Directorate General of Civil Aviation (DGCA), Airports Authority of India (AAI), Bureau of Indian Standards (BIS), Bureau of Energy Efficiency (BEE), Oil Marketing Companies (OMCs), airlines, airport operators and other key stakeholders.

The meeting reviewed the progress made in SAF production, certification, and supply chain development across the country. The status of various SAF production projects being implemented by Oil Marketing Companies and the timelines for commissioning these facilities were also reviewed. Stakeholders deliberated on measures required to ensure the timely availability of Sustainable Aviation Fuel to meet the anticipated demand from 2027 onwards.

Speaking on the occasion, Minister for Civil Aviation Shri Ram Mohan Naidu said, “India is committed to building a robust and globally competitive Sustainable Aviation Fuel ecosystem that supports the growth of our aviation sector while contributing meaningfully to global decarbonisation efforts. Guided by Prime Minister Shri Narendra Modi’s vision of ‘One Earth, One Family, One Future’, we are approaching SAF not merely as a compliance requirement but as a strategic national opportunity. Multiple stakeholders including the farmers stand to gain from the SAF value chain.”

The Minister further stated, “As an industry, we are already working on multiple fronts to reduce emissions. From 0 in 2014, today 104 airports in the country have switched entirely to 100% green energy usage. By encouraging the leasing ecosystem, airlines are being supported to have modern and fuel-efficient fleets. SAF is also a critical component for our collective efforts. We must now move from feasibility studies to concrete production timelines and from ambition to action. Every stakeholder needs to have clear obligations for ensuring adequate production as well as robust accounting. Our immediate priority is to achieve the 1% CORSIA blending requirement in the most cost-effective manner. As part of our long-term strategy, the carbon-credit offset mechanism must be developed through a whole-of-government approach.”

Shri Ram Mohan Naidu reviewed the proposed implementation roadmap for SAF blending mandate, including the roles and responsibilities of Oil Marketing Companies, airlines and airport operators. Discussions were held on establishing a robust accounting, monitoring and reporting framework aligned with ICAO/CORSIA requirements, development of a national SAF Registry with end-to-end traceability and measures to facilitate certification and market access.

Emphasising the importance of coordinated execution, the Minister said, “This transition must be driven through collective decision-making and close coordination among all stakeholders. We reviewed progress in SAF supply-chain development, the national SAF Registry, accounting and reporting systems and measures required for effective CORSIA compliance. I am encouraged by the significant progress already made and by the commitment shown by all participating Ministries and industry stakeholders. We have directed all concerned stakeholders to expedite the identified action points so that India is fully prepared well before the mandatory phase of CORSIA begins on 1 January 2027.”

Talking about the SAF Policy and the financial impact of SAF, Minister added, “The draft SAF policy is now in its final stages. So, we are doing multiple such inter-ministerial consultations and stakeholder engagements at various levels. For me voice of the passenger remains central and passenger happen to be the most important stakeholder of our industry. We have to ensure that this process imposes the least possible burden on passengers and airlines. For that we need to study all the possible SAF pathways and within pathways identify the most cost-effective mechanism right from production to drop-in at the airport”.

The meeting further deliberated on India's preparedness for CORSIA implementation, including the issuance of Letters of Authorisation and the development of a CORSIA-compliant carbon market framework in India.

The Government of India remains committed to promoting domestic production of Sustainable Aviation Fuel, strengthening India's aviation ecosystem, reducing carbon emissions from international aviation and positioning India as a global leader in sustainable aviation. READ MORE

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United Nations' International Civil Aviation Organization (ICAO) Transportation Fuels Policy Sustainability solar energy regulations public health policy power-to-x/gas/liquid markets/sales Jetfuel (Sustainable Aviation Fuel (SAF)) Investing India Hydrogen/Renewable Hydrogen Price Hydrogen/Renewable Hydrogen GHG (Greenhouse Gas Emissions) FOAK (First of a Kind) feedstock prices energy security energy independence drop-in biofuels/hydrocarbons CORSIA (Carbon Offsetting and Reduction Scheme for International Aviation) California BioRefineries/Renewable Fuel Production biomass BioChemicals/Renewable Chemicals Aviation Fuel/Sustainable Aviation Fuel (SAF) aviation fuel (SAF) price airports air quality air pollution control Agricultural waste/residue

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