India: The Emerging Global Hub for Sustainable Aviation Fuel with Breakthrough PBtL Technology

Last year, the International Air Transport Association (IATA) revealed that sustainable aviation fuel (SAF) production accounts for only 0.6% of total jet fuel consumption, falling far short of the 65% target set by the global aviation industry to achieve net-zero carbon emissions by 2050.

Currently, SAF costs two to five times more than conventional jet fuel, creating a significant economic barrier for airlines operating with razor-thin profit margins. Additionally, there is insufficient global refining capacity or raw materials such as cooking oil and animal fat to produce SAF at the necessary scale, with manufacturers hesitant to invest without long-term supply agreements.

The Global Landscape of Sustainable Aviation Fuel

However, a new report reveals that the world could begin sourcing low-cost SAF from an unexpected source—a joint study by the Institute for Environmental Solutions and Climate Change (IECC) at UC Berkeley and Energy Innovation has discovered that India holds a unique position to produce enough SAF to supply the global market at costs up to 40% lower than the global benchmark, thanks to the country's burgeoning renewable energy sector.

The Economic Potential of India's SAF Industry

In reality, India could transform its weakness of crude oil import dependency into a multi-billion dollar export industry by expanding Power-and-Biomass-to-Liquids (PBtL) fuel into a $9 billion export opportunity by 2030 and $30 billion by 2040. India produces substantial agricultural crop residues—traditionally burned by farmers—and only needs to collect 4% of this residue to produce enough SAF to meet 25% of global demand while creating direct income for rural communities.

Drivers from Renewable Energy

Furthermore, India is currently producing some of the world's cheapest green hydrogen, with prices dropping from $4.67/kg in June 2025 to $3.23/kg by February 2026, primarily due to abundant and inexpensive solar power supply. India's green hydrogen is projected to fall below $3/kg by 2030, enabling PBtL to continuously outcompete competing technologies.

PBtL Technology: A Breakthrough in SAF Production

Power-and-Biomass-to-Liquids (PBtL) combines agricultural waste with renewable electricity and green hydrogen to produce sustainable aviation fuel. Agricultural crop residues such as straw, forestry wood, and sawdust are first converted into a gas mixture known as syngas. Then, green hydrogen is added before the mixture undergoes the Fischer-Tropsch process, converting the carbon-rich gas into liquid hydrocarbons. The result is a jet fuel that can directly replace conventional fuel and is fully compatible with existing aircraft and airport infrastructure.

The addition of green hydrogen has fundamentally altered the economics of biomass-based SAF production. Traditional Biomass-to-Liquids (BtL) processes remove most of the carbon in the agricultural waste during conversion. Instead, PBtL uses green hydrogen to convert more carbon into liquid fuel, allowing for approximately double the amount of SAF production from the same amount of biomass.

Since this process depends on agricultural residues and forestry waste rather than food crops, it also avoids one of the major criticisms of traditional biofuels. When combined with carbon capture and storage, the technology can even remove more carbon dioxide from the atmosphere than it emits over its lifecycle.

Government Support in India

India has established policy targets requiring a 5% SAF blending rate into jet fuel by 2030, ensuring a regulated domestic market alongside global export ambitions. India's investments in SAF also aim to minimize long-term exposure to volatile jet fuel markets.

Following a spike in Aviation Turbine Fuel (ATF) prices after the Iran conflict broke out, New Delhi approved a $1.05 billion Value Stabilization Fund. This program provides interest-free financing to state-owned oil marketing companies, allowing domestic jet fuel prices to be capped at 115 rupees per liter and helping protect airlines like IndiGo and Air India from sudden fuel price fluctuations.

Investment in the Future

Policy support and improving production economics are also beginning to attract investor attention. California-based Aemetis (NASDAQ: AMTX) is considering an initial public offering (IPO) for its Indian subsidiary, Universal Biofuels. The proceeds would help finance a dedicated SAF plant in the country while adding capability to convert biodiesel into SAF for domestic and international airlines.

Universal Biofuels operates an 80 million gallon-per-year production facility on India's east coast, supplying tens of millions of liters of biodiesel to the country's three state-owned oil marketing companies (OMCs). Aemetis currently holds $3.8 billion in SAF supply agreements with major airlines, alongside a $3.2 billion agreement to supply renewable diesel.

Future Vision

With abundant renewable energy production potential, abundant biomass raw material supply, and strong policy support, India is positioning itself as a global center for sustainable aviation fuel production. The PBtL technology not only addresses the economic challenges of SAF but also creates new economic opportunities for farmers and rural communities, while helping India reduce its dependence on imported oil and achieve national climate goals.

As the global aviation industry struggles to meet net-zero carbon emission targets, India may offer a viable path to achieving these goals through large-scale, cost-competitive SAF production, combining technological innovation with natural resource advantages.

SustainableAviationFuel #SAF #India #PBtL #RenewableEnergy #GreenAviation #Innovation