CHEAP SOLAR AND CROP RESIDUE COULD MAKE INDIA A SUSTAINABLE AVIATION FUEL LEADER

India is uniquely positioned to produce cost-competitive sustainable aviation fuel (SAF) using a power-and-biomass-to-liquids (PBtL) pathway. By combining low-cost green hydrogen—enabled by plummeting solar and battery costs—with abundant agricultural residue, India can produce SAF that is more cost-effective and has lower carbon intensity than competing technologies like HEFA, ATJ, BtL, and PtL. Analysis indicates that a 2030 PBtL project could produce SAF at costs 40% lower than recent fossil jet fuel prices, with parity potentially reached in the 2030s. Beyond decarbonization, this approach reduces dependence on crude oil imports (currently 90% of supply) and mitigates severe air pollution caused by open-field residue burning, which is linked to 44,000 to 98,000 premature deaths annually. The brief recommends government support through first-of-a-kind demonstration projects near Delhi, Pune, and Mumbai airports, the use of trade policies to access EU and UK markets, and the implementation of incentives based on the social cost of carbon and avoided health costs from air pollution.

• India possesses two structural advantages for SAF production: low-cost solar power and the ability to collect large volumes of agricultural residue, which is currently often burned in open fields.
• Open-field burning of crop residue in India causes significant public health issues, contributing to 17 of the 30 most polluted cities globally and causing between 44,000 and 98,000 premature deaths every year.
• The power-and-biomass-to-liquids (PBtL) pathway is identified as the most cost-effective SAF option in India when green hydrogen prices drop below $3.4 per kilogram, a target achievable by 2030 via off-grid solar-and-battery projects.
• Economic analysis suggests that a PBtL project commissioned in 2030 could produce SAF at costs 40% lower than recent fossil jet fuel prices, with the cost gap between PBtL and fossil jet fuel potentially closing entirely for projects commissioned in 2036.
• PBtL SAF offers a strategic hedge against crude oil price volatility and reduces reliance on imported crude oil, which currently accounts for 90% of India's supply.
• Spatial analysis identifies Maharashtra, Haryana, Rajasthan, and Uttar Pradesh as the best regions for early industry development, with the areas around Delhi, Pune, and Mumbai airports being most favorable for first-of-a-kind projects.
• The document proposes specific economic incentives for PBtL, including a climate pollution penalty for fossil jet fuel at $86 per ton of CO2 and a subsidy for using crop residue based on an avoided premature death benefit of $230 per ton of biomass.

APA

Energy Innovation (2026). CHEAP SOLAR AND CROP RESIDUE COULD MAKE INDIA A SUSTAINABLE AVIATION FUEL LEADER. https://energyinnovation.org/wp-content/uploads/IECC-SAF-Policy-Brief-2026-web.pdf

Chicago

Energy Innovation. CHEAP SOLAR AND CROP RESIDUE COULD MAKE INDIA A SUSTAINABLE AVIATION FUEL LEADER. 2026. https://energyinnovation.org/wp-content/uploads/IECC-SAF-Policy-Brief-2026-web.pdf.

Wikipedia

{{cite report |author=Energy Innovation |title=CHEAP SOLAR AND CROP RESIDUE COULD MAKE INDIA A SUSTAINABLE AVIATION FUEL LEADER |date=June 2026 |url=https://energyinnovation.org/wp-content/uploads/IECC-SAF-Policy-Brief-2026-web.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{energyinnovation2026cheap, author = {{Energy Innovation}}, title = {{CHEAP SOLAR AND CROP RESIDUE COULD MAKE INDIA A SUSTAINABLE AVIATION FUEL LEADER}}, institution = {Energy Innovation}, year = {2026}, month = jun, url = {https://energyinnovation.org/wp-content/uploads/IECC-SAF-Policy-Brief-2026-web.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }