India Can Emerge as Global SAF Export Hub with Low-Carbon Ethanol Advantage: Triveni Engineering CEO

India is positioning itself as a potential export hub for sustainable aviation fuel (SAF), leveraging surplus ethanol capacity and lower carbon intensity compared to rivals like Brazil, according to Sameer Sinha, CEO (Sugar Business) of Triveni Engineering and Industries Ltd.

In an interview with PTI, Sinha outlined India's competitive advantages in the emerging SAF market. The earliest alcohol-to-jet SAF plants could become operational by 2029, he projected, assuming policy clarity emerges by the end of the current financial year. Until then, India will rely on limited SAF production from used cooking oil for 1-2 per cent blending.

"India has very significant potential to emerge as an export hub for Sustainable Aviation Fuel. We can start exporting on the East Coast to Southeast Asian countries, where Singapore is a major aviation hub. Similarly, on the West Coast to countries like Dubai," said Sinha.

Triveni is among 2-3 Indian companies exploring SAF production facilities, though no formal board proposals have been submitted yet.

The company produces approximately 23-24 crore litres of ethanol annually, making it one of India's largest producers.

India's key strength lies in substantial ethanol surplus. With ethanol production capacity built for E30-E35 blending targets but current usage at E20, ample feedstock is available for alternative applications.

"The first big benefit is a surplus of ethanol. The capacity is already done," Sinha explained. "India has capacities equivalent to support E30, E35 ethanol supply, which means we are in an oversupply situation." More significantly, Indian sugarcane-derived ethanol has lower carbon intensity than Brazilian ethanol. "If my CI number is lower than Brazil's, the pollution reduction is far larger if I use Indian ethanol versus Brazilian ethanol," he said.

"If you look at the US, unless it imports Brazilian 2G ethanol, it will largely be maize-driven SAF where carbon intensity will be very high. My carbon intensity of Indian sugarcane ethanol is the lowest. That's a very big advantage we bring to the table." Setting up an SAF facility with 80 tonne per day capacity would require about Rs 1,400 crore investment and 200 kg per day ethanol supply, Sinha said, and stressed that policy support is essential, including 100 per cent offtake guarantee, viable pricing, viability gap funding and preferential pricing for first movers.

"The earliest plant, from alcohol to jet, can come up in 2029. That big quantum jump will take place in 2029, when people would be available to produce SAF from ethanol," he said.

Five-year SAF demand for international flights is estimated at 50-60 crore litres, requiring 120 crore litres of ethanol -- a fraction of available surplus.

"SAF is not taking away too much ethanol. But the abundance of ethanol shows why India has that comparative advantage," Sinha noted.

With ethanol capacity built for higher blending but current usage at E20, the industry faces idle assets.

Sinha advocated for faster adoption of flex-fuel vehicles (FFVs), calling for GST cuts and state-level benefits in road tax and registration to match electric vehicles.

"FFV is the right way forward. Give them greater attractiveness in terms of GST cuts and road tax and registration tax benefits," he said, suggesting a dual dispensing system offering E20 and E100 options.

"FFVs have been there in Brazil for very long. They have been extremely successful and in India we believe that would be the right pathway for enhancing offtake." He also pointed to ethanol-diesel blending up to 5 per cent, which has been successfully tested. "Can we look at creating an ecosystem for safe usage of diesel blended with ethanol?" On feedstock availability, Sinha expressed confidence that the sugar industry can supply around 500 crore litres even at demand levels of 900 crore litres, after accounting for potable and industrial uses.

Currently, India's total distillery capacity is approximately 1,900 crore litres, including 900 crore litres from sugar feedstock and 1,000 crore litres from grain feedstock. With 1,048 crore litres of ethanol contracted by OMCs in 2024-25 ESY (Ethanol Supply Year November-October) and 330 crore litres of ethanol for alternative uses, there is a surplus of 450-plus crore litres of ethanol in the country.

Yields are set to improve. Sugarcane yields are expected to rise from the current 75 tonnes per hectare to 85 tonnes over the next decade, while maize yields could increase from 3.4-3.5 tonnes toward the global average of 6-7 tonnes per hectare.

However, Sinha stressed the need for price adjustments. "If my input prices increase, there has to be a corresponding increase in the output price. Otherwise, it becomes very unviable." Triveni was among pioneers in setting up multi-feed distilleries, enabling flexible feedstock conversion between sugary feedstocks like cane syrup B or C heavy molasses and grains such as maize and rice.

"That has helped us maximise utilisation of our distillation assets," Sinha said.

The company has secured approximately 80 per cent of its contracts with public sector and private oil marketing companies for ESY 25-26, and expects to reach 100 per cent capacity utilisation once the second cycle of ethanol tenders is announced.

Sinha believes India should leverage initiatives like the Global Biofuels Alliance to showcase its leadership in biofuels, with SAF ideally positioned for this role.

"The country being a signatory to Corsia, and we believe that used cooking oil with a very fragmented supply chain in an unorganised sector will not be in a position to take India beyond one, two, three per cent numbers. Therefore, when the 5 per cent target comes into force 2030 onwards, we believe ethanol to jet would really be the right pathway," he said.

At the global level, used cooking oil is being used for making SAF, especially in Europe and China, while others are looking at ethanol. The first SAF plant has been commercialised at Atlanta in the US.

"One of the differentiating factors of ethanol to jet is the benefit it brings to farmers in terms of rural prosperity, it enhances the farmer's income," Sinha said, highlighting socio-economic benefits beyond environmental gains.