Biofuels | Sustainable path to energy security and mobility through powertrain innovation

India is the world’s third-largest energy consumer and one of the fastest-growing economies. As the nation strives to meet its growing energy demands and reduce its carbon footprint, biofuels have emerged as a promising alternative.

According to Vivek Sharma, Principal Analyst at S&P Global Mobility, biofuels play a pivotal role in India’s transition to a more sustainable energy future. This article explores the role of biofuels in India’s energy landscape, government initiatives to promote their use, and the challenges and opportunities for scaling up biofuel production and consumption in the country.

According to the International Energy Agency, India’s energy demand is expected to grow by over 100% by 2040. India imports about 87% of its crude oil and 44% of its natural gas, making it vulnerable to global energy price fluctuations and geopolitical instability. This dependence contributes to trade imbalances and strains forex reserves. Additionally, fossil fuel use has led to serious environmental issues, prompting India to seek cleaner alternatives.

Biofuels are derived from organic materials such as crops, agricultural waste, and even algae.

These renewable energy sources can be used to replace conventional fuels like petrol, diesel, and coal in various sectors, including transportation, industry, and power generation. Biofuels are categorized into different types based on the feedstocks used and the technologies employed for their production.

A Sustainable Solution to India’s Economic Growth and Air Pollution Challenges

India, currently the 5th largest economy and the 3rd largest photovoltaic (PV) market globally, is well-positioned for ambitious future growth. India has vast potential for biofuel production due to its large agricultural base, favourable agro-climatic conditions, and abundance of agricultural waste. With over 100 million hectares of land under oilseed cultivation, India has a significant opportunity to produce biodiesel. Additionally, the large quantities of agricultural residues, such as rice husks, wheat straw, and sugarcane bagasse, offer ample resources for bioethanol production.

A Powerful Solution for Sustainable Transportation and Environmental Impact

Biofuels, especially in the transportation sector, offer a powerful solution to help combat air pollution by replacing fossil fuels with cleaner, renewable alternatives. The biogenic advantage of biofuels lies in their ability to capture and store carbon dioxide during their growth phase, effectively reducing the overall carbon footprint compared to traditional fossil fuels.

Furthermore, biofuels derived from agricultural waste and residues help reduce the need for waste disposal, promoting a circular economy where organic materials are repurposed to create valuable energy. This not only contributes to environmental sustainability but also enhances rural economies by creating new markets for agricultural by-products.

Government Initiatives and Policies

India has already made significant strides in biofuels development, with ethanol being used as an additive in petrol since the early 2000s and biodiesel production from jatropha being explored in various regions.

The Indian government has recognized the importance of biofuels in its energy strategy and launched several initiatives to promote their production and use. Key policies include:

• Pradhan Mantri JI-VAN Yojana (2019): Encourages commercial projects and R&D in the second-generation ethanol sector, promoting biofuel plant establishment and innovation.

• Samarth Mission: Aims to increase biomass co-firing in power generation from 5% to higher levels for carbon-neutral energy production.

• Ethanol Blending Policy (2018): Targets 20% ethanol blending and 5% biodiesel blending by 2030, with a faster goal of 20% ethanol blending by 2025-26. This supports domestic biofuel production under the Make in India initiative.

• GOBAR-DHAN Scheme (2018): Converts farm waste and cattle dung into compost, biogas, and bio-CNG, promoting sustainable agriculture and waste management.

• Repurpose Used Cooking Oil (RUCO): Encourages converting used cooking oil into biodiesel, addressing waste management while promoting alternative biofuel feedstocks.

• Central Financial Assistance (CFA): Offers financial support for biomass projects, including up to Rs. 5 Crores for biogas and Rs. 10 Crores for BioCNG projects.

Challenges in Scaling Biofuels Production

Despite their potential, widespread adoption of biofuels in India faces several challenges:

• Feedstock Availability: Inconsistent and region-specific availability of suitable feedstocks, with issues like poor yield, land competition, and water scarcity in crops like Jatropha.

• Technology and Infrastructure: Limited development of advanced technologies for efficient biofuel production. Infrastructure for production, storage, and distribution requires significant expansion and modernization.

• Economic Viability: Higher production costs compared to fossil fuels, with fluctuations in feedstock prices (e.g., sugar for ethanol) and land/irrigation costs for biodiesel. Economic incentives are necessary to improve competitiveness.

• Environmental and Social Concerns: Large-scale biofuel production could impact food security, land use, and biodiversity, especially if biofuel crops replace food crops or lead to deforestation.

Bio CNG: A Decarbonization Solution

Bio CNG is a promising clean technology for decarbonizing mobility. Produced from organic waste through anaerobic digestion, it offers a renewable energy source while helping reduce methane emissions, which are a significant concern in India due to agricultural practices and inadequate waste management. Methane, a potent greenhouse gas, can be captured from organic waste, including agricultural residue and landfill sites, and converted into Bio CNG, preventing its release into the atmosphere.

In urban areas with high waste generation, Bio CNG can be produced locally, reducing transportation costs and environmental impact.

Ethanol and BioCNG Vehicles: Maruti and Toyota’s Vision for a Sustainable Future

Maruti and Toyota have showcased prototype vehicles designed to run on ethanol and BioCNG. However, despite the promising prototypes, the commercialization and production of these vehicles have not yet materialized. The transition from prototype to production is complex, involving various challenges such as infrastructure development, fuel availability, and technological refinement. While these early efforts highlight the potential for ethanol and BioCNG to play a significant role in the future of mobility, further investment and policy support will be critical to bring these vehicles to the market at scale.

Opportunities for Biofuels in India

India has several opportunities to overcome these challenges and become a leader in biofuels production:

• Second-Generation Biofuels: The development of 2G biofuels from agricultural residues, municipal waste, and non-food crops offers a significant opportunity to scale up biofuel production without competing with food production. 2G biofuels also have the advantage of being more environmentally sustainable, as they reduce waste and utilize low-value feedstocks.

• Technological Innovation: Advances in biotechnology and bioengineering can help increase the efficiency of biofuel production processes. Research into algae-based biofuels, for instance, could help overcome land-use constraints, as algae can be grown in non-arable land and has a higher yield per hectare than conventional crops.

• Public-Private Partnerships: Collaboration between the government, private industry, and research institutions can help drive innovation and investment in biofuel production. Public-private partnerships (PPPs) can facilitate the scaling up of biofuel technologies, enhance infrastructure, and increase access to financing.

• Global Biofuel Market: As global demand for renewable energy increases, India has the potential to become a key exporter of biofuels. With its large agricultural base and growing expertise in biofuel technology, India can tap into international markets for ethanol, biodiesel, and biogas.

Conclusion

Biofuels present a significant opportunity for India to transition towards a more sustainable, low carbon energy system. With the right policies, technologies, and investments, biofuels can help reduce the country’s dependence on fossil fuels, alleviate energy security concerns, and contribute to climate change mitigation.

However, addressing challenges such as feedstock availability, economic viability, and infrastructure development will be critical to scaling up biofuel production in India. By focusing on second generation biofuels, promoting technological innovation, and fostering public-private partnerships, India can unlock the full potential of biofuels and pave the way toward a fossil-free future.

Also read: Powertrain diversity | Examining the role of CNG in the future of mobility