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

This policy brief argues that India is uniquely positioned to lead in sustainable aviation fuel (SAF) production by utilizing its low-cost solar power and abundant agricultural residue. The authors propose the power-and-biomass-to-liquids (PBtL) pathway as a cost-competitive alternative to fossil jet fuel and other SAF technologies, offering benefits for energy security, air quality, and climate targets.

• India possesses two structural advantages for SAF production: low-cost solar power, which enables the production of green hydrogen at some of the lowest global prices, and a large volume of agricultural residue that is currently burned in open fields.
• 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 via off-grid solar-and-battery projects by 2030.
• Analysis indicates that a PBtL project commissioned in 2030 could produce SAF at costs 40% lower than recent fossil jet fuel prices, with the potential to reach price parity with imported fossil jet fuel in the 2030s.
• PBtL SAF offers significant environmental and health benefits by diverting agricultural residue from open-field burning, which is linked to between 44,000 and 98,000 premature deaths annually in India.
• The PBtL pathway is presented as superior to other SAF technologies: it avoids the feedstock shortages of HEFA, the land/water intensity and food price concerns of ATJ, the high capital costs and carbon waste of BtL, and the infrastructure gaps for CO2 capture in PtL.
• Spatial analysis suggests that the regions surrounding the airports in Delhi, Pune, and Mumbai are the most favorable for initial PBtL projects, specifically highlighting the states of Maharashtra, Haryana, Rajasthan, and Uttar Pradesh.
• To scale the industry, the brief recommends government actions including launching demonstration projects with concessional finance, aligning trade policy with EU and UK mandates, and implementing incentives such as taxing fossil jet fuel based on a social cost of carbon of $86 per ton CO2.

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} }