India Can Meet 1% SAF Target in 2027 via Co-Processing, but 5% by 2030 Needs Investment

New Delhi — India already has enough refinery co-processing capacity to meet its sustainable aviation fuel (SAF) blending targets of 1% in 2027 and 2% in 2028, but its 5% goal for 2030 will require urgent investment. That is the conclusion of a joint report by S&P Global Energy and the SAF Association, "India's Strategy for SAF Leadership: From Policy to Implementation", released on Monday, 28 September 2026, as reported by Platts and republished by Hellenic Shipping News.

The report projects India's SAF demand rising from about 46,000 tonnes in 2027 to roughly 250,000 tonnes in 2030. The 1%, 2% and 5% targets apply to international flights and are indicative.

Background: from announcement to roadmap

India's SAF targets surfaced in 2025. SAF Investor reported in August 2025 that Minister of State for Civil Aviation Murlidhar Mohol had outlined indicative targets of 1% in 2027, 2% in 2028 and 5% in 2030, without specifying which airports would be designated. Biofuels Digest, citing NDTV in December 2025, said the targets apply to foreign flights, with domestic flights possibly included in future, and that oil marketing companies were preparing to comply. At state level, Uttar Pradesh launched a 2025 SAF manufacturing promotion policy described as the first of its kind in India.

Four refineries ready, feedstock the constraint

According to the S&P Global and SAF Association report, India has four ISCC-CORSIA certified co-processing facilities with a combined capacity of 106,500 tonnes a year:

Refinery	Location	Capacity (tonnes/year)
Bharat Petroleum	Mumbai	61,000
Indian Oil	Panipat	30,000
Hindustan Petroleum	Visakh	10,000
Mangalore Refinery and Petrochemicals	Katipalla	5,500

This capacity is considered sufficient for 2027 and 2028. For 2030, India depends on new HEFA and alcohol-to-jet (ATJ) plants coming online between 2028 and 2030. India's jet fuel consumption is expected to rise about 45%, from 192,000 barrels per day in 2024 to 277,000 barrels per day in 2031. The 1% blend in 2027 is estimated to cut greenhouse gas emissions by about 119,000 tonnes, rising to about 665,000 tonnes in 2030.

On feedstock, the report says India's edible oil consumption of 29–30 million tonnes could in theory yield 1.8–2.6 million tonnes of used cooking oil (UCO) a year, but only a fraction is collected through formal, traceable chains. The 1.5 billion litres of sugarcane and molasses ethanol supporting the E20 programme gives ATJ a structural advantage, although food-based feedstocks such as sugarcane ethanol are not recognised under the EU's ReFuelEU Aviation rules.

SAF Association Secretary General Rohit Kumar said the question is no longer whether India has an SAF opportunity. Alok Sharma, vice president of the SAF Association and a former Indian Oil R&D director, said projects must move beyond announcements toward bankable investments and commercial production.

Prices and relevance for Indonesia

Platts data cited in the report put SAF (HEFA-SPK) FOB Straits at US$2,440 per tonne on 25 September 2026, while standard UCO FOB North China was assessed at US$1,140 per tonne on 2 April 2026.

The report does not mention palm oil as a feedstock. But for Indonesia, which is also developing SAF, India's approach is worth watching for two reasons: its phased strategy starts with co-processing at existing refineries before building dedicated plants, and the limited collection of domestic UCO shows that the availability of traceable feedstock may matter more than refinery capacity. The differences between biodiesel, HVO and SAF are explained in the glossary.