by India’s Move Towards Promoting Biofuels:
India has taken major strides in recent years to promote the use of Biofuels as an alternative to petroleum based fuels. With rising fuel prices and concerns about climate change, the government sees biofuels as an attractive domestic option that can boost energy security and reduce carbon emissions. In this article, we examine India’s biofuels program and what the future holds in this area.
Early Initiatives and National Policy:
The early initiatives to promote biofuels in India can be traced back to the 1990s with some pilot projects using ethanol blended petrol. However, it was only in 2009 that the central government came out with the National Policy on Biofuels. This policy laid the framework for long term research and commercial production of biofuels in the country. It also introduced a target of blending 5% bioethanol with petrol and 5% biodiesel with diesel across the country by 2016-17.
To achieve these targets, the policy provided for financial incentives, interest subventions for entrepreneurs setting up biodiesel plants, and technology development support. State governments were also advised to develop their own policies and undertake promotional activities. Several states like Maharashtra, Karnataka and Bihar started biodiesel demonstration projects and ethanol plants in subsequent years.
Progress on Ethanol Blending:
Of the two biofuels, ethanol blending with petrol has seen more progress over the past decade. As of 2021, around 900 million litres of bioethanol are being blended with petrol across India which accounts for over 6% blending. Around half of this blending is done in the states of Uttar Pradesh and Telangana. The central government has also advanced the national bioethanol blending target to 10% by 2022 in a bid to boost the program further.
Major feedstocks used for ethanol production are sugarcane juice as well as damaged food grains like rice and wheat. Distilleries in states like Bihar, UP and Haryana have repurposed to produce ethanol from damaged grains. Oil marketing companies play a key role in undertaking the logistics of transportation and blending ethanol at their fuel stations. Challenges remain in stabilizing year-round supply and dealing with complex pricing issues.
Biodiesel Adoption At Early Stage:
In comparison to ethanol, adoption of biodiesel blending has been slower in India mainly due to availability issues. As of now, only about 5-6 million litres of biodiesel is estimated to be blended which is less than 1% of the national target. The main feedstock is non-edible oils from trees like Mahua, Neem and Jatropha which are mostly grown by small farmers in central India.
Setting up biodiesel extraction units and ensuring consistent supply has proved challenging. Factors like varying crop yields over regions and seasons hamper biodiesel production. International vegetable oil imports are another option but high costs remain a deterrent. The government is trying offsetting measures like interest subventions and technology support to boost local non-edible oil extraction capacity to 5 billion litres by 2030.
With firm policy backing, strong commitment from oil companies and rapid technology advancement, India’s biofuels sector is poised for significant growth in the coming years. For ethanol, the target of 20% blending by 2025 aims to produce 8-10 billion litres domestically. This would absorb around 150 million tons of excess food grains and agricultural residues annually. On the biodiesel front, if supply and distribution challenges are resolved, the 20% blending target could reduce India’s import dependence massively.
The availability of abundant agricultural feedstocks combined with a huge energy demand makes India an promising long term market for biofuels globally. Apart from energy security, a thriving domestic industry has the potential to create rural employment and economic growth opportunities. While higher blending targets and focus on advanced biofuel production would accelerate the transition, sustained political will and stakeholder coordination would be critical success factors. Overall, biofuels promise to substantially boost India’s environmental and energy security objectives in the coming decades.
*Note:
1. Source: CoherentMI Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc.
