A new report highlights India's current capacity to meet its initial sustainable aviation fuel (SAF) blending mandates, set to begin in 2027. The country's existing refinery infrastructure, specifically through coprocessing methods, is deemed sufficient for these near-term goals.
However, the report emphasizes that scaling up SAF production to achieve India's more ambitious 5% blending target by 2030 will require significant financial commitment. This investment is crucial for developing stand-alone commercial SAF production facilities and establishing the necessary infrastructure for feedstock collection and processing.
For freight forwarders and supply chain analysts, this development signals potential shifts in air cargo operations within India. While immediate impacts on airfreight rates are unlikely, the long-term push for SAF could lead to increased fuel costs as the industry transitions to more expensive, sustainable alternatives. Forwarders should monitor these developments, as the availability and cost of SAF will influence carrier choices and operational expenses for air cargo moving in and out of India, potentially affecting routing and capacity planning in the future.