India invests in sustainable aviation fuel while Shell cancel flagship project
The Indian Ministry for Civil Aviation has officially presented its sustainable aviation fuel (SAF) feasibility study at a two-day workshop in New Delhi.
Launched in partnership with the International Civil Aviation Organization (ICAO) and the EU, the study presented key findings on SAF’s growth potential in India ahead of ICAO’s Innovation Fair in Montreal. The workshop sets a comprehensive roadmap for SAF adoption across India, from production to deployment.
At the summit, Minister Ram Mohan Naidu noted:
SAF offers a practical and immediate pathway to decarbonise aviation, with the potential to reduce lifecycle carbon emissions by up to 80% compared to conventional jet fuel.
The Minister added that scaling SAF production could reduce India’s carbon emissions by 20 to 25 million tonnes annually. Now one of the world’s fastest-growing aviation markets, SAF could be critical to scaling Indian aviation while maintaining net-zero emissions targets.
As a country with over 750 million metric tonnes of biomass and nearly 230 million metric tonnes of surplus agricultural residue, India is well-positioned to become a global hub for SAF manufacture and export. Additionally, the country’s young aircraft fleet is already among the most energy-efficient in the world, providing a solid foundation for further sustainable development.
India’s government has set ambitious targets for SAF deployment: 1% of total fuel for international flights by 2027, and an increase to 5% by 2030. Production at the first certified SAF refinery, Indian Oil’s Panipat, is expected to begin by the end of 2025.
While SAF could potentially reduce the carbon emissions of the energy-intense aviation sector significantly, its long-term feasibility has been challenged. A 2024 report from the Institute of Policy Studies (IPS) labelled sustainable fuels ‘a false solution’ that are impossible to scale effectively in line with net-zero emissions targets.
Meanwhile, Shell announced on 3 September 2025 announced that they were cancelling the construction of their flagship biomass fuel facility in the Netherlands. The oil and gas giant had already paused the project in 2024 due to technical difficulties, but will now shelve it entirely. Machteld de Haan, head of downstream, renewables and energy solutions at Shell, said:
As we evaluated market dynamics and the cost of completion, it became clear that the project would be insufficiently competitive to meet our customers’ need for affordable, low-carbon products.
With India preparing to scale SAF investment, the world will be watching closely to determine whether SAF can deliver on its promise to reduce emissions.
Join us at Aerospace Tech Week 2026 for our Sustainable Aerospace summit, where industry leaders will discuss the future of SAF and operational sustainability.
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