In India, Mint reported that adoption of green fuel by Indian airlines will be a key challenge for them considering the high cost structure associated with sustainable aviation fuel, said Brian Moran, VP of global sustainability policy and partnerships at Boeing.
“The airlines are certainly very eager to purchase more SAF, but some Indian airlines are the most price-sensitive anywhere in the world. Therefore, the challenge is to bring the cost of sustainable aviation fuel down because it currently is at 300-500% of traditional jet fuel,” the executive said.
The Indian government is contemplating issuing a directive, making it mandatory for all airlines to use blended SAF by 2025, according to the report.
“The reality is that today a vast majority of SAF production in the world occurs in California, and soon it will happen in other states of the US, because that’s where tax incentives are closing the green premium. While other regions of the world are experimenting with a mandate, which may work, mandates themselves don’t produce SAF,” Moran added.
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