Brian Moran, who serves as the Boeing’s VP for global sustainability policy and partnership has said that adoption of green fuel by Indian airlines will be a key challenge for them keeping in mind the high cost structure that is associated with implementing sustainable aviation fuel (SAF).
While speaking to Mint, he said that “Indian oil and few other producers are starting the production” of SAF.
“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,” he added.
SAF is similar to any normal fuel but with lower carbon emissions. The current rate for aviation turbine fuels or jet fuels is ₹84,855 to ₹99,793 per kilolitre in metro cities.
Moran suggested that government should work on smart policy framework with the support of all stakeholders in order to promote the use of SAF, he said, “One of the biggest recommendations is to invest in SAF with smart policies that will help de-risk and close the green premium.”
The Indian authorities are contemplating in issuing a directive which will make it mandatory for all airline operators to use blended SAF by 2025. Also the framework may enforce phased implementation of use of green fuels in airlines, starting with 1% green fuel by 2025 and 5% by 2030.
While speaking on the implementation of green fuel policy in different parts of the world, Moran said, “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.”
He said that the implementation of smart policies play essential role when it comes to clean fuel because investors and producers need assurance that investment in clean fuel will yield economic benefits.
As per global estimates, aviation accounts for roughly 3% of overall carbon dioxide emission, however experts believe that the impact on global warming may be 2-4 times higher due to presence of non-carbon dioxide pollutants.
Moran said that Boeing is working hard to ensure that airplanes are capable to handle 100% SAF by 2030.
