Indian Aviation's Green Future: Praj, IATA, and ISMA Form Alliance

Key Takeaways

• Praj, IATA, and ISMA formed a 2025 MoU to accelerate India’s Sustainable Aviation Fuel certification and use.
• India targets SAF blending of 1% by 2027 and 2% by 2028 for international flights.
• India could produce up to 40 million tonnes SAF by 2050, boosting rural economies and clean energy leadership.

India’s aviation sector is moving toward a greener future, driven by a new alliance between Praj Industries, the International Air Transport Association (IATA), and the Indian Sugar & Bio-energy Manufacturers Association (ISMA). This partnership, formalized by a Memorandum of Understanding (MoU) on June 3, 2025, aims to speed up the certification and use of Sustainable Aviation Fuel (SAF) in India. The collaboration is a response to both global climate goals and India’s own ambitions to become a leader in clean energy, especially in aviation.

This analytical content examines the purpose and scope of the alliance, the methods being used, key findings so far, and the broader implications for India’s aviation and agricultural sectors. It also presents data, trends, and comparisons with global developments, and concludes with evidence-based insights and limitations.

Indian Aviation’s Green Future: Praj, IATA, and ISMA Form Alliance

Purpose and Scope

The main purpose of the Praj, IATA, and ISMA alliance is to help India’s aviation industry reduce its carbon emissions by making and using more Sustainable Aviation Fuel. The partnership focuses on two main goals:

Conducting a Life Cycle Assessment (LCA) of SAF made from Indian sugarcane using the Ethanol-to-Jet (ETJ) process. This means studying the total environmental impact of SAF from start to finish.
Developing a certification method that fits India’s needs but also matches international standards, so Indian-made SAF can be accepted worldwide.

The scope of this effort covers technical research, policy support, and market development for SAF in India. It also aims to help India meet its SAF blending targets—1% by 2027 and 2% by 2028 for international flights—while supporting rural economies and building India’s reputation as a clean energy leader.

Methodology

The alliance is using a scientific and policy-driven approach to reach its goals. The main steps include:

Life Cycle Assessment (LCA):
- Experts from Praj and ISMA are working together to measure the carbon footprint of SAF made from Indian sugarcane.
- The LCA looks at every stage: growing the sugarcane, turning it into ethanol, converting ethanol to jet fuel, and burning the fuel in airplanes.
- The main measure is Carbon Intensity (CI), which is the amount of carbon dioxide (CO₂) released per unit of energy (measured in grams of CO₂ per megajoule, or gCO₂e/MJ).
Certification Development:
- The team is creating a certification process that matches global standards, especially the International Sustainability and Carbon Certification (ISCC) CORSIA and the Roundtable on Sustainable Biomaterials (RSB) CORSIA standard.
- This ensures that SAF made in India can be trusted by airlines and regulators worldwide.
Industry Collaboration:
- The alliance brings together Praj’s technical expertise, IATA’s global aviation network, and ISMA’s access to sugarcane feedstock.
- They are working with Indian Oil Corporation Ltd. (IOCL), AirAsia India, and other partners to test and demonstrate SAF production and use.
Policy and Market Support:
- The group is advising the Indian government on SAF policies, including blending mandates and incentives.
- They are also working on market development, such as connecting SAF suppliers with airlines through tools like IATA’s upcoming SAF Matchmaker.

Key Findings and Early Results

1. India’s SAF Blending Mandate

India has set a clear path for SAF use in aviation, with blending targets of 1% by 2027 and 2% by 2028 for international flights. This is part of a larger push to use more biofuels and reduce the country’s carbon footprint.

2. Technical Progress

Praj Industries has already produced SAF from Indian feedstock, working with IOCL and AirAsia India.
India’s first integrated SAF demonstration plant is running at Praj Matrix, the company’s research center in Pune.
In 2023, Praj signed an agreement with Axens to boost SAF production in India.

3. Certification and Standards

The alliance is developing a certification method that matches ISCC CORSIA and RSB CORSIA standards.
This is important because it allows Indian SAF to be accepted by airlines and regulators around the world, opening up export opportunities.

4. Economic and Rural Impact

India has about 10% of the world’s biomass feedstock available for SAF.
The country could produce up to 40 million tonnes of SAF by 2050, using nearly 100 million tonnes of biomass after meeting other bio-energy needs.
This creates big opportunities for rural development, as farmers can supply feedstock and benefit from new markets.

5. Global Market Trends

Global SAF production is expected to reach 2 million tonnes (2.5 billion liters) in 2025, which is only 0.7% of airlines’ total fuel use.
The cost of SAF is still high. In Europe, compliance fees have doubled the price for airlines, with one million tonnes of SAF costing about $1.2 billion and compliance fees adding another $1.7 billion.

Data Presentation and Visual Descriptions

While this article cannot display actual charts, it can describe how the data would look if presented visually:

1. India’s SAF Production Potential (Bar Chart)

X-axis: Years (2025, 2030, 2040, 2050)
Y-axis: SAF Production (million tonnes)
Bars: Show steady growth, reaching up to 40 million tonnes by 2050

2. Global SAF Production vs. Total Airline Fuel Use (Pie Chart)

Small slice: SAF (0.7% in 2025)
Large slice: Conventional jet fuel (99.3%)

3. Cost Breakdown for European Airlines (Stacked Bar Chart)

Bar 1: SAF purchase cost ($1.2 billion)
Bar 2: Compliance fees ($1.7 billion)
Total: $2.9 billion for one million tonnes of SAF

4. Biomass Availability in India (Map with Color Coding)

Darker shades: Regions with higher biomass availability
Lighter shades: Regions with less biomass

Comparisons, Trends, and Patterns

India vs. Global SAF Leaders

Feedstock Availability: India is among the top countries for biomass, giving it a natural advantage over many other nations.
Production Capacity: While current SAF output is small, India’s potential is huge compared to its present share of the global market.
Certification: By aligning with ISCC and RSB standards, India is positioning itself to compete globally.

Cost Trends

SAF is still much more expensive than regular jet fuel, mainly due to limited supply and high production costs.
Mandates in Europe have increased costs for airlines, showing the need for more efficient production and better policy support.

Policy Patterns

India’s approach combines blending mandates, industry partnerships, and rural development, which could serve as a model for other countries.
Global alliances like the Global Biofuels Alliance and IATA’s SAF Matchmaker are helping to connect suppliers and buyers, making the market more transparent.

Evidence-Based Conclusions

1. India’s Strategic Position

India is well-placed to become a major hub for Sustainable Aviation Fuel, thanks to its large supply of biomass, strong technical partners like Praj, and supportive government policies. The country’s experience with ethanol blending in road transport shows that it can scale up biofuel programs quickly and effectively.

2. Economic and Social Benefits

The move toward SAF is not just about reducing emissions. It also offers real economic opportunities for rural communities, as farmers can sell crop residues and other biomass for fuel production. This can help raise incomes and create new jobs in the countryside.

3. Environmental Impact

Aviation is one of the hardest sectors to decarbonize. By using SAF, India can cut emissions from flights, support global climate goals, and show leadership in green technology.

4. Challenges and Limitations

High Costs: SAF is still much more expensive than regular jet fuel, which could slow adoption unless costs come down.
Feedstock Competition: Biomass is also needed for other uses, like electricity and road transport, so careful planning is needed to avoid shortages.
Certification Complexity: Meeting international standards can be tough, especially for small producers.

Limitations

While the alliance between Praj, IATA, and ISMA is a big step forward, there are some limits to what can be achieved in the short term:

Scale: Current SAF production is still very small compared to total fuel use.
Market Uncertainty: Prices and demand for SAF can change quickly, depending on global oil prices and policy changes.
Technical Barriers: Some airlines and airports may need to upgrade equipment to use higher blends of SAF.
Policy Risks: Changes in government policy or international rules could affect the market.

Implications for Stakeholders

For Airlines

Short-term: Airlines will need to start blending small amounts of SAF to meet mandates, which may increase fuel costs.
Long-term: As production grows and costs fall, SAF could become a regular part of airline operations, helping meet climate targets.

For Farmers and Rural Communities

New Markets: Farmers can sell crop residues and other biomass for SAF production, creating new income streams.
Rural Development: Investment in SAF plants can bring jobs and infrastructure to rural areas.

For Policymakers

Policy Support Needed: Continued support through blending mandates, incentives, and research funding will be key to scaling up SAF.
Global Leadership: By setting high standards and building strong partnerships, India can become a leader in sustainable aviation.

For the Environment

Lower Emissions: SAF can cut greenhouse gas emissions from aviation, helping fight climate change.
Sustainable Practices: Using waste biomass and sustainable farming methods can reduce environmental impacts.

Practical Guidance and Next Steps

For those interested in India’s SAF journey, here are some practical steps and resources:

Stay Informed: Follow updates from Praj, IATA, and ISMA for news on SAF projects and certification progress.
Explore Official Resources: The Ministry of Civil Aviation, Government of India provides updates on aviation policies and green initiatives.
Connect with Industry: Airlines, fuel producers, and farmers can join industry groups and alliances to share knowledge and find business opportunities.
Watch for New Tools: IATA’s SAF Matchmaker will soon help connect SAF suppliers with airlines, making it easier to buy and sell eco-friendly fuel.

Conclusion

India’s alliance between Praj, IATA, and ISMA marks a turning point in the country’s push for greener aviation. By focusing on scientific assessment, international certification, and rural development, the partnership is laying the groundwork for a cleaner, more sustainable future. While challenges remain—especially around costs and scaling up production—the potential benefits for the economy, environment, and society are clear.

As reported by VisaVerge.com, India’s efforts to develop and certify Sustainable Aviation Fuel are not only helping the country meet its climate goals but also creating new opportunities for farmers, businesses, and the aviation industry. With continued support from government, industry, and international partners, India can become a global leader in sustainable aviation, setting an example for other countries to follow.

For more information on India’s aviation policies and green initiatives, visit the official Ministry of Civil Aviation website.

Keywords integrated: Praj, IATA, Sustainable Aviation Fuel

Learn Today

Sustainable Aviation Fuel (SAF) → A biofuel used to reduce carbon emissions from aircraft, made from renewable biomass or waste materials.
Life Cycle Assessment (LCA) → A method to evaluate environmental impacts of a product from production to use and disposal.
Carbon Intensity (CI) → The amount of CO₂ emissions produced per unit of energy, measured in grams CO₂ equivalent per megajoule.
Ethanol-to-Jet (ETJ) Process → A conversion technology that transforms ethanol derived from biomass into jet fuel suitable for aviation use.
International Sustainability and Carbon Certification (ISCC) → A global standard certifying biofuels meet sustainability and carbon reduction requirements.

This Article in a Nutshell

India’s aviation sector advances sustainable fuel through a 2025 alliance among Praj, IATA, and ISMA, aiming for global certification and reduced emissions. Targets include 1% SAF blending by 2027 and 2% by 2028, with major potential for rural growth and clean energy dominance by 2050.
— By VisaVerge.com