Honeywell, AM Green to assess feasibility of making sustainable aviation fuel

US-based industrial and aerospace giant Honeywell and Greenko founders-led AM Green signed an agreement on Wednesday to collaborate on manufacturing sustainable aviation fuel (SAF) in India from biofuels, including ethanol, methanol, and green hydrogen.

The companies will assess the feasibility of making SAF in India to reduce the country’s oil import dependence, helping shipping companies adopt the low-emission fuel, and aiding aviation companies to meet International Civil Aviation Organisation (ICAO) CORSIA guidelines for low-carbon fuel replacements, the two companies said in a joint statement.

The feasibility studies by the two companies is expected to be completed by mid-2025.

SAF refers to non-conventional aviation fuel produced through alternative feedstocks, including grains, alcohol, and residual food waste.

Mint earlier reported on 25 November 2024 that state-run NTPC Ltd was in talks with global airlines to secure deals for supplying SAF. NTPC also planned to invest as much as ₹5 trillion in green energy projects, including development of SAF, by 2030.

Honeywell’s agreement with AM Green to study feasibility of making SAF will position India as a "global leader in alternative fuel innovation," said Ashish Modi, president, Honeywell India, adding that the agreement will combine Honeywell’s carbon capture technologies and ethanol-to-jet solutions with AM Green’s expertise in green hydrogen and ethanol production.

India’s SAF potential and regulations

SAF development is crucial, as demand for the low-carbon emission fuel is poised to rise in the coming decades due to the ICAO’s green aviation regime CORSIA. CORSIA refers to Carbon Offsetting and reduction Scheme for International Aviation, which aims to promote a globally-harmonized system of sustainable aviation fuel usage for airlines, with some mandated thresholds.

So far, 129 countries have joined CORSIA. India has stayed away from the voluntary phase on account of reservations on these thresholds.

The Honeywell-AM Green agreement assumes importance as India has the potential to become a SAF exporter by 2040 with investments of about ₹6-7 trillion due to an abundance of agricultural feedstock and residue in the country, as per an October 2024 Deloitte report. SAF is produced by blending of liquid biofuel, which is derived from feedstock and agricultural residues.

The Deloitte report said that India would also be able to create more than a million jobs and reduce its oil import bill by $5-7 billion annually by developing and exporting SAF.

India’s current position as a net exporter of aviation turbine fuel (ATF) as well as its abundant feedstock will help in capitalising on the growing global demand for sustainable aviation fuel, as per the Deloitte report, adding that the demand for SAF is set to rise to approximately 0.8 million tonnes by 2030 and to about 4.5 million tonnes by 2040, as global regulations on green aviation and SAF blending mandates grow stricter.