India’s Sustainable Aviation Fuel Infrastructure: The Missing Link in Green Aviation

India’s aviation sector is growing at an unprecedented pace, with new airports, expanding airline fleets and rising passenger traffic driving demand for aviation fuel. While this growth supports economic development and regional connectivity, it also increases carbon emissions from one of the world’s fastest-growing aviation markets. As the country works towards its long-term climate goals, Sustainable Aviation Fuel (SAF) is emerging as a critical infrastructure opportunity that extends far beyond airlines and aircraft. It is creating demand for new refineries, fuel storage facilities, airport infrastructure and supply chains that could reshape India’s aviation ecosystem.

Unlike conventional Aviation Turbine Fuel (ATF), Sustainable Aviation Fuel is produced using renewable feedstocks such as agricultural waste, used cooking oil, non-food crops and other sustainable sources. Depending on the production pathway, SAF can significantly reduce lifecycle greenhouse gas emissions while remaining compatible with existing aircraft engines and airport fuelling systems. This makes it one of the most practical solutions for decarbonising commercial aviation without requiring airlines to replace their fleets.

The recent partnership between Akasa Air and Bharat Petroleum Corporation Limited (BPCL) highlights how India’s aviation industry is beginning to prepare for large-scale SAF adoption. Under the Memorandum of Understanding, the two organisations will establish a framework for the supply and offtake of SAF blended ATF at designated airports, while also collaborating on demand forecasting, production planning and policy engagement. The agreement is not simply about fuel supply. It signals the beginning of an integrated ecosystem where airlines, fuel producers and infrastructure providers work together to support cleaner aviation.

Building a domestic SAF ecosystem will require substantial investment across multiple infrastructure segments. Refineries will need dedicated production units capable of processing renewable feedstocks into aviation fuel. Storage terminals must be upgraded to safely handle blended fuels, while airport fuel farms and hydrant systems will need operational readiness for regular SAF distribution. Dedicated logistics networks will also be required to transport sustainable feedstocks from agricultural and industrial sources to production facilities before delivering finished fuel to airports across the country.

BPCL has already announced plans to commission its first Sustainable Aviation Fuel production facility by the end of 2026. The company is developing SAF units across its Mumbai, Kochi and Bina refineries while exploring multiple production technologies, including co-processing, Hydroprocessed Esters and Fatty Acids (HEFA) and Alcohol-to-Jet pathways. These investments reflect the growing recognition that fuel infrastructure will play a central role in India’s aviation decarbonisation strategy.

Airport infrastructure will also become increasingly important. As SAF availability expands, airports may require dedicated blending facilities, quality testing systems and upgraded fuel management processes to ensure safe and efficient operations. Digital monitoring platforms will play a greater role in tracking fuel quality, inventory management and emissions reporting as airlines begin using larger volumes of sustainable fuel.

The growth of Sustainable Aviation Fuel aligns closely with India’s broader clean energy ambitions. Alongside investments in green hydrogen, biofuels, electric mobility and renewable power, SAF represents another important pillar of the country’s energy transition. It also supports international aviation sustainability commitments under the International Civil Aviation Organization’s Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA), which encourages airlines worldwide to reduce carbon emissions.

For infrastructure developers, refinery operators, engineering firms and logistics providers, SAF presents a new investment opportunity that extends well beyond the aviation sector. Developing production facilities, storage infrastructure, transport networks and airport fuelling systems will require collaboration between the energy and aviation industries over the coming decade.

As India’s airport network continues to expand and passenger demand rises, sustainable fuel infrastructure will become just as important as runways, terminals and cargo facilities. The transition to cleaner aviation will depend not only on technological innovation but also on building an integrated infrastructure ecosystem capable of delivering Sustainable Aviation Fuel at scale. That transformation has already begun.