The Indian government has set in motion various schemes and regulations that will make biofuels, a crucial component to meet the country’s increasing energy needs.
As the country is on the path to recovery from the economic brunt of the pandemic, cutting expenditures that affect the national coffers seems like a logical move. India’s annual crude oil imports have been increasing year on year, while the global petroleum prices have become too prohibitive. Fortunately, India has an advantage in its abundant agricultural produce and surplus raw materials that can be used to manufacture ethanol, a viable renewable energy source. The Indian government has set in motion various schemes and regulations that will make biofuels, a crucial component to meet the country’s increasing energy needs. The oft-repeated Atmanirbhar Bharat vision seems to be at play here, empowering not just the farmers, but also India’s future towards self-reliance in terms of energy demands.
The Department of Biotechnology has been promoting R&D for biofuel technology development by recognising the need for clean and renewable energy for transportation. The Government of India had, in June 2018, announced a new policy on biofuels and an indicative target of 20 per cent blending of ethanol in petrol and 5 per cent blending of biodiesel in diesel by 2030.
After the country took a massive financial hit due to the outbreak of COVID-19, the government bodies have been actively endorsing biofuel and its usage as it will help the country to cut down on its crude oil imports. In 2019, India imported around 226 million metric tonnes (MMT) of crude oil and this volume keeps rising every year. By mixing a small portion of biofuel with other processed fuels will help the government to provide a renewable source of energy to its citizens and that too at a very low price.
In 2015, Prime Minister Narendra Modi had stated that India needs to bring down its oil import dependence from 77 per cent in 2013-14, to 67 per cent by 2022, when India will celebrate its 75th year of independence. Now, stretching further on this concept of using green energy, the central government is planning to direct oil companies to sell up to 20 per cent ethanol blended petrol from April 1, 2023.
According to reports, India imports 83 per cent crude oil for its domestic use after processing. Similarly, 50 per cent of its natural requirement is fulfilled by imports. The government has set a target to reduce this import dependence by 10 per cent in the next two years.
As per the report by NITI Aayog 2021, India’s net import of petroleum was 185 Million Metric Tonnes (MMT) at a cost of $55 billion in 2020-21. Most of the petroleum products are used in transportation. Hence, a successful E20 programme can save the country $4 billion per annum, which is around Rs 30,000 crore. Besides, ethanol is a less polluting fuel, and offers equivalent efficiency at lower cost than petrol. Availability of large arable land, rising production of food grains and sugarcane leading to surpluses, availability of technology to produce ethanol from plant based sources, and feasibility of making vehicles compliant to ethanol blended petrol make E20 not only a national imperative, but also an important strategic requirement.
Relying on biofuels inevitable
Biofuels obtained from organic matter or waste are one of the most valuable renewable energy sources that can help reduce carbon emissions. Bio-diesel, bio-ethanol and biogas are the three most commonly used biofuels. Apart from being a renewable source of energy, biofuels help in reducing the air pollution of the globe. As per the Renewable Fuels Association, an association for America’s ethanol industry, the usage of biofuels has helped in reducing more than 230 million metric tonnes of carbon emissions since 2007.
Adopting biofuels as an alternative source of energy can significantly improve farmers’ income, generate employment opportunities, reduce imports, augment waste to wealth creation, etc. Therefore, the government, through several programmes, promotes the production and usage of biofuels.
In order to further encourage the production and the usage of biofuels, the Government of India has launched various schemes and policies such as National Policy on Biofuels, 2018, Pradhan Mantri JIVAN Yojana, Biogas Power Generation and Thermal Energy Application Programme (BPGTP), New National Biogas and Organic Manure Programme (NNBOMP), Sustainable Alternative Towards Affordable Transportation (SATAT) etc.
Elaborating on the government’s schemes and policies, Atul Mulay, President, Bioenergy, Praj Industries, said, “Government has already taken various strategic interventions to boost the ethanol production and consumption in the country. Government has recently released a five year roadmap, advancing the E20 target by five years to FY 2025. This has created ethanol capacity building opportunities.”
Ethanol production
In India, ethanol is produced through various sources and depending on the raw materials used for their production, their outputs are categorised in 1G, 2G and 3G, where ‘G’ stands for ‘generation’. The source of 1G – the first generation of biofuels – include edible sources like molasses, sugar-containing materials like sugarcane, sugar beet and sorghum, starch-containing materials like corn, cassava and rotten potatoes, and edible oil seeds. 2G biofuels use non-edible sources like non-edible oilseeds (e.g. Jatropha curcas), used cooking oil, agriculture residue such as rice straw, cotton stalk, corn cobs, saw dust, bagasse, etc. 3G biofuels are drawn from industrial waste, municipal solid waste, etc. 2G and 3G biofuels are recognised as being more advanced.
“The supply chain for 1G ethanol production from sugar is well established. Different sugar mills have their own ethanol production capacity. Recently, the government has permitted use of starchy feedstock (surplus and damaged grains) for ethanol production. Starchy feedstock from Food Corporation of India (FCI) will be made available to ensure uninterrupted supply,” said Mulay.
Echoing similar sentiments, Dr Anjan Ray, Director Council of Scientific and Industrial Research-Indian Institute of Petroleum (CSIR-IIP) said, “The new biofuel policy has opened up new avenues of using 1G, as well as 2G and also mixed feedstock. While 1G-bioethanol technologies are well established, and the 2G-bioethanol processes are moving towards maturity, the Indian energy sector now has to roll out production by focusing on economically viable and scalable technologies using waste-based feeds as far as possible and also by enhancing productivity and utilisation of 1G crops other than sugarcane.”
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The Indian government has set in motion
