Fueling the Future: SAF as a Catalyst for Sustainable Air Travel

Why in the News?

Recently, during a meeting with the Civil Aviation Minister, representatives from Indian airlines requested tax relief on Aviation Turbine Fuel (ATF). This highlights the increasing pressure on airline companies due to rising operational costs, especially from fuel, which is a major expense in aviation.

What is Aviation Turbine Fuel (ATF)?

• ATF, also known as jet fuel, is a refined petroleum-based fuel used primarily in aircraft powered by gas-turbine engines (like jets and turboprops).

• It is a highly refined kerosene, sometimes blended with additives for improved performance and safety.

• It is produced by refining crude oil in petroleum refineries, where the kerosene fraction is hydrotreated to remove impurities like sulphur, and then blended to meet international standards.

Types of ATF:

• Jet A – Common in the U.S.

• Jet A-1 – Global standard due to better cold weather performance.

Special Characteristics:

• Contains anti-static, anti-corrosion, and anti-microbial additives.

• Designed to perform in extreme conditions (like -40°C at 35,000 feet altitude).

• Subjected to strict international quality standards (ASTM, DEF STAN).

What is Sustainable Aviation Fuel (SAF)?

• SAF is a bio-based, low-carbon alternative to conventional ATF.

• It is made from renewable feedstocks such as:

  • Waste oils (like used cooking oil)

  • Non-food crops

  • Agricultural residues

  • Municipal solid waste

Types of SAF include:

• HEFA-SPK – From plant oils/fats

• FT-SPK – From Fischer-Tropsch synthesis

• ATJ-SPK – From alcohols (ethanol, isobutanol)

Benefits of SAF:

• Can reduce CO₂ emissions by up to 80% over its life cycle.

• Fully compatible with existing aircraft and infrastructure when blended with regular jet fuel.

Global Framework:

• The International Civil Aviation Organization (ICAO) has introduced a Global Framework for SAF to guide and promote the use of clean fuels in aviation.

Why is SAF Important?

1. High Emissions from Aviation:

   • Aviation contributes around 2.5% of global CO₂ emissions.

   • Its carbon emissions grew faster (2000–2019) than from other transport sectors like road and rail.

2. Rising Air Travel Demand:

   • Global aviation demand is projected to increase by 4.3% annually over the next two decades.

   • Without alternatives, emissions will continue to rise.

3. Global Climate Goals:

   • Meeting targets under the Paris Agreement and Net-Zero pledges requires the aviation sector to transition to greener fuels like SAF.

Challenges in SAF Production and Adoption

1. High Production Cost:

   • SAF is 50–200% more expensive than traditional ATF due to advanced technologies and limited economies of scale.

2. Limited Feedstock Supply:

   • Feedstocks like waste oils, fats, and residues are limited and also in demand from other industries (e.g., food, cosmetics).

3. Supply Chain Issues:

   • Collection, processing, and transportation of diverse raw materials for SAF is complex and requires significant infrastructure.

4. Inadequate Production Capacity:

   • Current global SAF production is far too low to meet future aviation needs.

5. Regulatory Barriers:

   • Absence of uniform global standards for SAF limits cross-border trade and slows investments.

ATF in India: Cost and Taxation Issues

• ATF constitutes around 40% of operating costs for Indian airlines.

• It is currently subject to high taxes (excise duty + VAT) in India, making it more expensive compared to many other countries.

• ATF is not under GST, leading to varied state taxes and complex logistics.

• Airlines are demanding tax relief or inclusion of ATF under GST to ensure uniformity and reduce costs.

Way Forward

1. Policy Reforms:

   • Consider inclusion of ATF under GST for uniform taxation.

   • Provide tax incentives or subsidies for SAF producers and users.

2. Investment in SAF Infrastructure:

   • Promote public-private partnerships to develop SAF plants.

   • Encourage R&D in cost-effective SAF technologies.

3. Feedstock Strategy:

   • Identify and scale up domestic feedstock sources, such as agricultural waste and algae.

4. International Collaboration:

   • Engage in global alliances (like ICAO, CORSIA) to harmonize SAF standards and share best practices.

5. Airline Incentives:

   • Offer carbon credits or financial incentives for airlines adopting SAF.

Conclusion

Aviation Turbine Fuel is the backbone of the aviation industry but also a major contributor to emissions and operational costs. With growing environmental concerns and rising air traffic, there is an urgent need to transition toward Sustainable Aviation Fuel. However, the journey is filled with challenges—from cost and feedstock to regulations and supply chains. A coordinated approach involving policy support, investment, and innovation is essential to fuel India’s aviation sector sustainably and competitively.