The biggest reformation that the world is going to witness in the near future is a complete decoupling from fossil fuels. Every country and its sector in one way or another is dependent on fossils. And hence all the sectors are going through transformation. Well! Some are at a fast pace like electricity; others are at a low speed. But one of the least discussed sectors that uses the most powerful and refined fossil sources is also going green. Yes! I am talking about the aviation industry. Now, the aviation industry is reducing its dependence on fossil fuel to accommodate sustainable air fuel. And India is trying to champion this change.
In common parlance, the pollution in the upper atmosphere is least discussed, simply because no direct effect is faced by us. Right? But it has some adverse effects, like any other transportation medium. So, the aviation industry too needs to go towards renewable yet low-carbon emitting fuel. This gives impetus to Sustainable Air Fuel.
What is Sustainable Aviation Fuel?
Sustainable aviation fuel (SAF) is a type of fuel that is produced from sustainable feedstocks such as agricultural residues, waste oils, non-food crops, and municipal solid waste. Unlike conventional jet fuel, which is derived from crude oil and has a high carbon footprint, SAF is produced using sustainable and renewable sources, making it an eco-friendly alternative.
SAF has the potential to significantly reduce the aviation industry’s carbon footprint and help achieve global climate goals. On a life-cycle basis, it has been shown to reduce greenhouse gas emissions by up to 80% compared to traditional jet fuel.
The SAF is more acceptable for the aviation sector compared to any other fuel because of its drop-in-fuel feature. It means that the SAF can be directly used in existing engines and seeks no alteration.
Currently, the USA, European countries, and China are some prominent leaders in SAF usage. But why am I talking about SAF today?
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India to enter a joint venture for SAF production in India
Actually, India has taken a significant step towards the production of SAF. Indian Oil, along with US-based clean energy technology firm LansaJet Inc., is planning to set up a joint venture.
The proposed JV will set up a plant to produce SAF with alcohol-to-jet (ATJ) technology at the state-run company’s Panipat refinery in Haryana at a cost of Rs 3,000 crore. It is worth noting that ATJ is a technology that is used to convert bio-based alcohol like ethanol into jet fuel.
As per reports, the shares of the company will be divided among IOCL, LansaJet, and a bunch of airline companies. Whereas IOCL will hold 50 percent of the shares, Lansajet will account for 25 percent of the shares. The remaining 25 percent will be under different airline companies.
Interestingly, the airline share is reserved after domestic airlines expressed interest in being a part of this venture. In proportion to their respective shares, IOCL and LansaJet will invest Rs. 1,500 crore and Rs. 750 crore, respectively. According to industry officials, Tata Group’s Air India and Vistara, IndiGo, Go First, and Blue Dart are approached for investment, where each company will get a minority stake for Rs 100–150 crores.
Initially, the suggested facility aims to produce 85,000 metric tonnes of sustainable aviation fuel (SAF) per annum by utilising technology that transforms corn-based, cellulosic, or sugar-based ethanol into SAF.
Some concerns
However, there are concerns too. For airlines, investment in non-core areas can affect the liquidity maintenance efforts, which is the core area of investment. Apart from that, SAF production is a costly and exhaustive process. If 5% of SAF is blended with conventional jet fuel, the ticket price for an average two-hour flight will increase by around Rs 180.
As per the airline executives, this problem can be solved if the emission reduction is pushed by government policy. However, the concerns are based on current pricing and production. Once production and usage become common, the issues may be resolved.
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How does SAF contribute to decarbonization?
If we go by facts, the airline sector targets net zero emissions until 2050. The World Economic Forum reported that airline emissions are responsible for 2.5 percent of global CO2 emissions.
As per the plan of Aviation Industry, SAF can contribute a major role in net zero target. To achieve net zero, SAF would eliminate 65 percent cent its emissions; 13 percent will be eliminated through the introduction of new technology, including electric and hydrogen. While offsets and carbon capture will eradicate 19 percent of emissions, infrastructure and operational efficiencies will contribute to the eradication of the remaining 3 percent of CO2 emissions.
Growing Indian Aviation and need for SAF
As per the International Air Transport Association (IATA), India’s air passenger traffic is expected to increase to 442 million by 2035, with 322 million new air travellers, as the domestic aviation market has grown by over 20% for more than a year. IATA’s 20-Year Air Passenger Forecast also predicts that India will become the third largest aviation market, surpassing the UK, by 2026.
The report further estimates that the demand for air travel globally will nearly double from 3.8 billion travellers to 7.2 billion passengers in the next 20 years, with an annual compound average growth rate (CAGR) of 3.7%.
Considering this anticipation to be correct, India would need SAF as much as any other country in the world. But as per today’s policy, India is seeking self reliance and thus it becomes necessary for the government of India to work efficiently towards SAF.
India has the potential
In another report published last November, Sebastian Mikosz, Senior Vice President for Environment and Sustainability at IATA, said that India is one of the countries with the largest potential to produce SAF.
So, the initiation of the joint venture and subsequent start of production will actually give India an upper hand over many other countries. It is the best time for India to incorporate SAF because air transport in India is undergoing a reformation at this time, and it will be comfortable for the industry to go through a shift.
Additionally, the USA is the leading producer of SAF and India is an agriculture-rich country. Of late, the government of India has given special emphasis to ethanol production, which could be used as fuel and premix. So, this joint venture has all the potential to become a successful initiative and benefit the Indian aviation industry.
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