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.

Generations of Biofuels

Significance of Biofuels

• 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.

Government Initiatives to Promote Ethanol Production

• 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.