Summary From India State Climate Investment Forum 2026

This white paper summarizes the discussion from the Clean Fuels track of the India State Climate Investment Forum 2026, focusing on the opportunities and challenges associated with scaling Sustainable Aviation Fuel (SAF) in Maharashtra. The paper captures insights from industry leaders, technology developers, policymakers, and ecosystem stakeholders on how Maharashtra can develop a bankable SAF ecosystem and support the transition toward lower-carbon aviation.

The global aviation sector’s decarbonization pathway increasingly depends on the accelerated deployment of SAF; however, moving from ambition to commercial-scale implementation requires addressing key challenges related to project economics, feedstock availability, infrastructure, regulatory support, and demand certainty. The white paper highlights that while technology pathways such as Hydroprocessed Esters and Fatty Acids (HEFA), Alcohol-to-Jet (ATJ), co-processing, and emerging waste-based solutions are progressing, the primary challenge remains making SAF projects investable and bankable by creating reliable supply chains, securing long-term offtake agreements, and establishing supportive policy frameworks.

Maharashtra is uniquely positioned to become a SAF hub due to its strong industrial ecosystem, refinery infrastructure, port connectivity, aviation demand centers, and agricultural resources. The state’s sugar industry, availability of agricultural residues, proximity to major airports, and potential for integrated technology clusters create opportunities to develop diverse SAF pathways, including ethanol-based ATJ, waste-based fuels, and future synthetic fuel solutions.

The white paper also emphasizes that scaling SAF requires coordinated action across stakeholders. Key priorities include developing robust feedstock aggregation and reverse supply chains, creating bankable offtake structures through airlines and corporate buyers, implementing credible monitoring and reporting frameworks, and establishing streamlined approval processes. A Maharashtra SAF Coalition bringing together producers, airlines, airports, policymakers, investors, and other stakeholders could help accelerate project development and convert market interest into actionable investments.

Key Takeaways

• SAF deployment in Maharashtra will depend on overcoming the current cost premium compared with conventional jet fuel through policy support, innovative financing structures, and reliable demand mechanisms.
• Bankable offtake agreements, credible environmental claims, and robust MRV systems are essential to attract private and institutional capital into SAF projects.
• Maharashtra’s industrial base, refinery ecosystem, aviation hubs, sugar industry, and agricultural residue availability provide a strong foundation for developing a regional SAF hub.
• Feedstock aggregation remains a critical challenge, particularly for pathways such as HEFA, highlighting the need for traceable reverse supply chains for used cooking oil and other sustainable feedstocks.
• Establishing a Maharashtra SAF Coalition, implementing streamlined approval processes, and creating financing and procurement frameworks can help accelerate SAF project development and investment.