Aviation

Last year, the International Air Transport Association (IATA) revealed that sustainable aviation fuels (SAF) production represents only 0.6% of total jet fuel consumption, well below the 65% target by the global aviation industry to reach net-zero carbon emissions by 2050. SAF currently costs two to five times more than conventional jet fuels, with the hefty price premium creating a significant economic barrier for airlines that operate on razor-thin margins. Additionally, there is not enough global refining capacity or raw materials such as cooking oil and animal fats to produce SAF at the scale required, with producers hesitant to invest without long-term supply agreements. However, a new report has revealed that the world could start sourcing cheap SAF from an unlikely source: a joint study by IECC at UC Berkeley and Energy Innovation has found that India is uniquely positioned to produce enough SAF to supply global markets at costs up to 40% below global benchmarks thanks to the country’s booming renewable energy sector.