How fixed rupee PPAs deliver parity by 2036

The joint report titled ‘India’s Aviation Opportunity: Turning Agricultural Residue and Low-Cost Solar into Competitive Sustainable Aviation Fuel with Power-and-Biomass-to-Liquids’ highlights how fixed rupee power purchase agreements (PPAs) enable sustainable aviation fuel (SAF) to achieve levelised cost parity with conventional jet fuel by 2036.

Although conventional aviation fuel in India relies on imported crude oil priced in US dollars, the study demonstrates that when evaluating costs across a 25-year levelised project cycle, the financial gap narrows significantly. Power-and-biomass-to-liquids (PBtL) facilities, built as capital-intensive domestic assets, secure operational inputs through long-term, rupee-denominated PPAs, insulating levelised production costs from exchange rate fluctuations and foreign commodity price shifts.

As a result, synthetic fuel plants are projected to achieve full levelised cost parity with conventional fuel by 2036, even sooner if policies capture the broader economic benefits of green fuel.

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