{
  "id": 679443,
  "title": "How fixed rupee PPAs deliver parity by 2036",
  "url": "https://urgent.news/2026/08/12/how-fixed-rupee-ppas-deliver-parity-by-2036",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-08-12T16:30:00.000Z",
  "source": {
    "name": "Gulf Times Business",
    "slug": "gulf-times-business",
    "url": "https://www.gulf-times.com/article/730945/business/how-fixed-rupee-ppas-deliver-parity-by-2036"
  },
  "original_language": "en",
  "account": "A recent report titled 'India's Aviation Opportunity: Turning Agricultural Residue and Low-Cost Solar into Competitive Sustainable Aviation Fuel with Power-and-Biomass-to-Liquids' emphasizes that fixed rupee power purchase agreements (PPAs) for synthetic fuel plants provide a key advantage in maintaining cost parity with conventional jet fuel by 2036. India's aviation fuel currently uses imported crude oil priced in US dollars; however, the levelized cost of PBtL fuel, produced at a plant commissioned in 2030, is estimated at Rs127 per litre, which is only 18% higher than the levelized purchase cost of conventional jet fuel over a quarter-century. By 2036, synthetic fuel facilities could achieve full cost parity with conventional fuel, assuming base-case market assumptions. This projection can be accelerated if the broader economic benefits of green fuel, such as health co-benefits from reduced field burning ($0.38 per litre) and carbon costs ($0.22 per litre), are factored in.",
  "summary": "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.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}