India’s Ministry of Petroleum and Natural Gas updated its “National Policy on Biofuels” in 2018 and made further changes in June 2022. This policy replaced the previous 2009 version. Following this, India released an “Ethanol Blending Roadmap for 2020-25”.
The policy aims to cut down on petroleum imports by promoting local biofuel production. Developments in biofuel technology, recommendations from the National Biofuel Coordination Committee (NBCC), and a new focus on ethanol blending have led to these policy changes.
The following are the main amendments approved to the National Policy on Biofuels:
- to allow more feedstocks for production of biofuels,
- to advance the ethanol blending target of 20% blending of ethanol in petrol to ESY 2025-26 from 2030,
- to promote the production of biofuels in the country, under the Make in India program, by units located in Special Economic Zones (SEZ)/ Export Oriented Units (EoUs),
- to add new members to the NBCC.
- to grant permission for export of biofuels in specific cases, and
- to delete/amend certain phrases in the Policy in line with decisions taken during the meetings of the National Biofuel Coordination Committee.
Pradhan Mantri JI-VAN
- The “Pradhan Mantri JI-VAN (Jaiv Indhan – Vatavaran Anukool fasal awashesh Nivaran) Yojana” is a scheme introduced by the Government in March 2019.
- It is designed to provide financial support to Second Generation (2G) bio-ethanol projects.
- These projects use lignocellulosic biomass and other renewable feedstock.
- The scheme has a total financial outlay of Rs. 1969.50 crore from 2018-19 to 2023-24.
- Under this yojana, a commercial project can receive up to Rs. 150 crore.
- A demonstration project can receive up to Rs. 15 crore.
Overview Of Biofuel Technological Developments
- The Department of Biotechnology encourages innovative research. They support biofuel development through programmes such as the Centre of Excellence, extramural projects, and fellowship schemes.
- They also promote international cooperation in biofuel research.
- The Department is funding projects in Gujarat to convert mixed organic waste into methane and bio-fertilizer. The goal is to make biofuels more affordable and efficient.
- The Indian Oil Corporation’s R&D Department is collaborating with the Department of Biotechnology. Their focus is on bioenergy.
- There’s ongoing development of a 2G ethanol enzymatic technology. This technology uses biomass feedstock like rice straw, wheat straw, and bagasse.
- A high-yield Bio-methanation technology has been developed and demonstrated. This technology can produce biogas from different types of raw materials.
- A new agri-waste pre-treatment technology is being developed for biogas units. This technology prepares feed in-situ.
- There’s a joint research project with IISC, Bengaluru. They aim to develop a technology to derive fuel cell-grade hydrogen from biomass. This project will also help tackle the biomass challenge and improve air quality.
Challenges In India’s Biofuel Production
- Low sugarcane and maize yields in India necessitate land-use changes. This significantly increases embodied emissions.
- Subsidies for agricultural inputs and power, along with Minimum Support Price (MSP), lead to unsustainable use of water and fertilisers.
- The absence of a strong mechanism for wasteland classification and complex land ownership patterns hinder land revival programmes.
- The use of competing agricultural feedstocks can lead to conflicts among different agricultural sectors. For instance, sugarcane farmers recently complained about Oil Marketing Companies (OMCs) favouring maize for ethanol production, which threatens their livelihoods.
- The promotion of first-generation (1G) biofuels can result in technology lock-ins, thereby delaying the transition to second-generation (2G) feedstocks. Once implemented, incentives for sugarcane- and maize-based production will be hard to repeal due to the influence of agricultural lobbies in many states.
Achieving A Long-Term And Sustainable Boost In Biofuel Production
Here are some policy suggestions to foster a long-term and sustainable growth in biofuel production:
Environmental Implications
- The implementation of 2G biofuel projects can present environmental challenges such as local pollution and food security issues.
- To mitigate these, it’s essential to create new institutional arrangements for monitoring compliance with standards.
Sustainable Supply Chains
- Data on the suitability of different 2G feedstocks is currently scarce.
- A roadmap focusing on feedstocks that minimise land-use changes and promote a circular economy is needed.
- High transport costs due to low feedstock density is a challenge that needs addressing.
Financing Research And Development
- Many 2G biofuels like cellulosic ethanol and biomass to biodiesel are still in the early commercialisation stages.
- High production costs and risks hinder the fast uptake of these fuels.
- Public enterprises should increase investments in pilot projects for 2G biofuels.
- The Pradhan Mantri JI-VAN Yojana aims to provide significant funding for 2G technology projects, but the scope and budget for such schemes should be expanded.