Govt, industry must collaborate on SAF incentives, logistics: Ajay Singh

Ajay Singh, CMD of SpiceJet, stated that the government and industry must collaborate to establish a "significant incentive and logistic structure" for the production of sustainable aviation fuel (SAF) to aid in lowering carbon emissions.

Conversations have taken place with the Prime Minister's Office regarding the allocation of areas close to airports for SAF refineries to reduce transportation expenses, and also with oil marketing firms such as IOC, BPCL, and HPCL to establish a mini refinery for SAF production at their current refineries, he mentioned.

"I think one of the things that we need to do is to have these SAF refineries, which are relatively simpler, probably closer to airports. If you're really serious about it. We've had this discussion with the PMO as well, that, can you allot spaces, which are close to airports so that the transport cost, which is the largest part of that cost, because you know you have to address these issues," Singh said.

The SpiceJet CMD stated that eventually, the government and the industry must collaborate to develop a substantial incentive and logistical framework to produce SAF.

In 2023, the output of SAF was approximately 0.5 million tonnes, and this figure needs to rise significantly by 2050.

The International Air Transport Association (IATA) previously announced plans to create the SAF Registry in order to enhance the adoption of the fuel by accurately tracking and reporting emissions reductions achieved through its usage.