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Informist, Friday, Sept. 26, 2025

 

By Pallavi Singhal

 

NEW DELHI – At a recent inter-government meeting, Japan expressed its interest in buying sustainable aviation fuel made from second generation ethanol, or 2G ethanol, from India, a senior government official aware of the matter said. India has the potential to become a major hub for sustainable aviation fuel production in South Asia, with available biomass feedstock projected to hit 100 million tonnes by 2030, according to a research by the International Air Transport Association, thereby placing India as a prominent player in the segment.

 

"This was a preliminary discussion, but Japan is keen to buy sustainable aviation fuel, especially that made from bagasse as they see sugarcane as one of the most green forms of produce, with low mechanisation," the official said. Bagasse is the dry pulpy residue left after the extraction of juice from sugarcane.

 

The main difference between first-generation or 1G and second-generation or 2G ethanol is their raw materials. While 1G ethanol is made from food crops like sugarcane, corn, and wheat, 2G ethanol is derived from agricultural waste and non-food biomass such as crop residues, husks, stalks, and bagasse. This distinction makes 2G ethanol more sustainable and reduces competition with food crops, leading to lower greenhouse gas emissions.

 

"Japan does not have the biomass or the feedstock to produce it (ethanol) on its own. Thus, Tokyo seems open to invest in our projects if we want them to or just buy the SAF (sustainable aviation fuel) we offer. The talks are too preliminary to say anything concrete on it," the official added.

 

According to the study by the International Air Transport Association, India's experience with ethanol blending and supportive government policy could position it as a leading producer of sustainable aviation fuel in Asia.

 

India's aviation sector is expected to grow 11-13% annually until 2030, according to a report by the Indian Sugar and Bio-Energy Manufacturers Association on 'Green Horizon'. It said India is likely to lead global growth in air passenger traffic and will be the fastest-growing aviation market globally from 2023 to 2053.

 

This is likely to boost demand for sustainable aviation fuel and increase the blending mandates to 1% of the international blending by 2027, 2% by 2028, and 5% by 2030, from nil currently. According to estimates, India has the potential to produce 24.50-31.00 billion litres of sustainable aviation fuel annually, the report said. This is well above the country's requirement of producing 6.00 billion litres per annum, under a 15% blending scenario in the domestic market, in line with the Carbon Offsetting and Reduction Scheme for International Aviation, CORSIA, by 2040. CORSIA is a global measure by the International Civil Aviation Organization to stabilise CO2 emissions from international flights at their 2019 levels. Under the scheme, aircraft operators must offset emissions that grow beyond 85% of 2019 levels by purchasing carbon credits from eligible projects or using sustainable aviation fuels.

 

The Indian sugar association has urged the government for capital support, viability gap funding, regulatory streamlining and market-based incentives to unlock full-scale development of the sector. The Indian sugar sector could help position the country as a regional hub for low-carbon aviation fuel, it said.  End

 

Edited by Tanima Banerjee

 

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