India Emerged as the World’s Third-largest Biofuel Producer

GS Paper III Indian Economy

India has emerged as the world’s third-largest biofuel producer, marking significant progress in clean energy.

The country has achieved 19.6% ethanol blending in petrol as of January 2024 and is set to reach 20% five years ahead of its 2030 target.

This move is reducing fuel imports, cutting emissions, and supporting rural economic growth.

About Biofuel

Biofuels are renewable fuels derived from biological/ Organic sources such as plants, agricultural waste, and algae.
- They serve as alternatives to fossil fuels and play a crucial role in reducing greenhouse gas emissions and enhancing energy security.
These can be broadly categorized in three types: Liquid Biofuels (ethanol, biodiesels, bio-methanol etc.), Biogas (Bio-LNG, Bio-CNG) and Solid Biomass.

Generation	Source	Characteristics
1st Gen	Food crops	Made from food sources such as sugar, starch, vegetable oil Ex: Bioalcohols, Biodiesel, Vegetable oil
2nd Gen	Non-food biomass	Produced from non-food crops or portions of food crops that are not edible e.g., stems, husks, wood chips Ex: cellulose ethanol

3rd Gen	Algae-based biofuels	Focuses on biofuel generation from a microbial community. Example- Butanol
4th Gen	Synthetic biofuels	In the production of these fuels, crops genetically engineered to take in high amounts of carbon are grown and harvested as biomass. The crops are then converted into fuel using second generation techniques. Ex: synthetic gasoline

Energy Security: Reduces dependency on fossil fuels and lowers fuel import costs(Ethanol blending programme has saved Rs. 85,000 crore in foreign exchange).
Environment Impact:: Biofuel Promotion helped in reducing CO2 emissions, by 519 lakh metric tons and reducing environmental impact (equivalent to planting 175 million trees).
Boosts rural economy, increasing farmers’ income through ethanol production and development of a market for agricultural residues/wastes.
- Creates jobs in biofuel production and supply chains.
Enhances energy security and contributes to climate change mitigation
Circular Economy: Promoting circularity and 3R by employing waste for wealth creation and delivering wider socioeconomic benefits.

National Policy on Biofuels (2018):
- Aims to increase the availability of biofuels.
- Focuses on enhancing blending percentages with conventional fuels.
Ethanol Blending Program (EBP):
- Targets achieving 20% ethanol blending in petrol by 2030.
PM JI-VAN YOJANA:
- Provides financial support for developing second-generation ethanol projects.
- Encourages the use of non-food biomass for ethanol production.
GOBARdhan Scheme (Galvanising Organic Bio-Agro Resources Dhan):
- It aims to convert biodegradable/ organic waste into valuable resources such as biogas, compressed biogas (CBG), and organic manure.

Additional Reading: Global Biofuels Alliance

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