Globally, several airlines have concluded long-term offtake agreements with SAF suppliers, most of which are reported as commercially competitive.
A number of international airports have already agreed to supply SAF through their hydrant systems.
As of October 2018, over 5.5 billion Liters of SAF are in current forward purchase agreements by airlines across the world.
India, which imports up to 80 percent of its oil needs, has committed to spend USD1.5 billion on setting up biofuel refineries that are also expected to employ around 15,000 people.
Prime Minister Shri. Narendra Modi announced on 10th August that ethanol blending could help the country save $1.7 billion a year on import bills.
As per the National Bio-Fuel Policy 2018, India has set a target of 20% ethanol blending to petrol by 2030. Currently only 3% or 4% ethanol blending in petrol is available due to unavailability of bio fuel.
The government in May of this year, also approved a new policy expanding the scope of raw material for ethanol production by allowing the use of sugarcane juice, sugar and starch containing materials & damaged foodgrains that are unfit for human consumption, for ethanol production.
India has surplus biomass availability about 120 to 160 million metric ton annually which if converted has the potential to yield 30 billion litres of ethanol annually.
Shri. Dharmendra Pradhan, Hon’ble Minister for Petroleum & Natural Gas, GoI announced on 8th September that 12 bio-refineries were being set up to achieve 10% ethanol blending.
On October 10, Bharat Petroleum Corporation Ltd (BPCL) announced its second-generation ethanol bio refinery with a capacity to produce 30 million litres of fuel grade ethanol per year, in Bargarh district of Orissa. Attracting an investment of USD 150 million, the refinery will be commissioned by 2020. It would be the first bio fuel plant in the country where ethanol will be produced from rice straw.
BPCL is also planning in the short term to set up other two bio fuel plants in the areas of Madhya Pradesh and Maharashtra.
Indian Air Force plans to start using a mix of Aviation Turbine Fuel and Bio-Fuel for AN-32, the first ever IAF aircraft to use the fuel mix. After transports, the helicopter fleet will fly using Bio-Aviation combination and ultimately fighters like the Su-30MKi, and Mig-29 will also be flying using Bio-Aviation Fuel.
Every year, the IAF pays about USD 6 billion for Aviation Turbine Fuel. With Bio-Aviation Fuel, the IAF expects its fuel bill to drop by about 10 per cent. Initially, the plan is to use a 90-10 mix, gradually, as the supply and production of Bio-Fuel increases the plan is to move to a 75 -25 mixture.