I believe this week has marked a watershed moment, as the Government has notified an amendment to the Aviation Turbine Fuel (ATF) (Regulation of Marketing) Order, 2001 (ATF Control Order) via a notification dated 17 April 2026. This amendment was issued as an administrative measure to bring Aviation Turbine Fuel blended with Sustainable Aviation Fuel (SAF) under the ambit of the ATF Control Order.
It marks a transformative moment for the domestic aviation industry and the broader ethanol sector in India. This decision not only aligns with global aviation fuel sustainability efforts but also positions India at the forefront of the green fuel transition.
Following this crucial development, ChiniMandi spoke to a cross-section of experts from the aviation industry, sustainability leaders, and bioenergy industry representatives to understand the implications of this important notification.
The bioenergy industry, from molasses to grain, has applauded the decision, emphasizing its potential to significantly boost ethanol demand.
Previously, ATF was defined only as petroleum-based fuel meeting BIS specifications. The amendment expands this definition to include SAF co-processed alongside ATF (as per IS 1571 in petroleum refineries) and SAF conforming to IS 17081 blended with ATF. This amendment is essential to keep India aligned with the global SAF supply chain.
As recognized by the ICAO, SAF is a renewable fuel derived from alternative feedstocks such as crops, biogenic residues, and waste materials, offering significant reductions in GHG emissions. The ICAO is currently implementing CORSIA (Carbon Offsetting and Reduction Scheme for International Aviation) to control emissions from international flights. The mandatory phase of CORSIA begins in 2027, requiring international flights to offset emissions above a baseline level; the use of SAF can help reduce these offsetting requirements. Recognizing this global requirement, the Government has already announced indicative SAF blending targets for international flights: 1% in 2027, 2% in 2028, and 5% in 2030.
Experts have noted that while the initial ethanol requirements for SAF might appear modest, the escalating targets for 2030 will necessitate substantial production increases. As blending levels aim for 5%, the demand for ethanol will undoubtedly rise, encouraging producers to scale up operations.
The strategic outlook of this decision underscores a potential for long-term demand that extends beyond the existing E20 petrol programme. Creating a high-value vertical for ethanol manufacturers can help address surplus capacity while fostering economic growth in the sector.
However, it is crucial to note that the success of this initiative hinges on competitive pricing and the establishment of effective market mechanisms.
Despite the optimism surrounding SAF, there remains a notable absence of dedicated SAF production facilities in India. Vedang Pittie from Harinagar Sugar Mills Ltd. has emphasized the urgent need for a robust policy roadmap to catalyze investments in this space. The lack of a clear policy framework has stalled the establishment of SAF plants, even as global counterparts move ahead with ambitious blending mandates.
CORSIA's targets further amplify this urgency, compelling India to meet international blending standards by 2027 and beyond. With projections suggesting that India could require approximately 600 crore litres of SAF by 2040, the government must act swiftly to create a conducive environment for investment and innovation. This is crucial not only for compliance but also for securing India's position in the global aviation fuel market.
As the world shifts toward sustainable alternatives, other nations are already taking significant strides. With mandates set by the European Union, the UK, the US, Japan, and Singapore, India must significantly accelerate its efforts to avoid falling behind. The potential adoption of Alcohol-to-Jet (ATJ) technology, which utilizes low-carbon alcohols sourced from renewable processes, could represent a further leap toward sustainable aviation fuel production.
The government's SAF blending policy is a welcome step toward a greener aviation future, creating opportunities for the ethanol industry while aligning with global sustainability goals. However, realizing this potential will require a sustained commitment to policy development, investment, and innovation. The time to act is now; we must strike while the iron is hot, as the aviation sector and ethanol producers alike stand at the threshold of a new era in low-carbon fuel solutions.
For further inquiries or to contact Uppal Shah, Editor-in-Chief, please send an email to Uppal@chinimandi.com.