Minister for Petroleum & Natural Gas Hardeep Singh Puri has emphasized that bioenergy is increasingly becoming a crucial alternative to fossil fuels, offering both environmental benefits and economic opportunities, particularly in rural areas. He said this while presenting a detailed account of India’s progress in the bioenergy sector and its critical role in the country's energy transformation at the inaugural session of the India Bio-Energy & Tech Expo 2024 (IBETE).
Puri elaborated on the Indian government’s strategic efforts to advance the bioenergy sector, highlighting its significance in reducing import dependence, saving foreign exchange, and promoting a circular economy. The government’s strategy encompasses several vital areas, including ethanol and biodiesel blending, Compressed Biogas (CBG), Sustainable Aviation Fuels, biomass utilization (such as pellets and briquettes), Biohydrogen, and waste-to-energy solutions.
One of the standout achievements discussed by Puri was the success of India’s ethanol blending program. Since its inception, the ethanol blending percentage has surged from 1.53% in 2014 to 15% in 2024. Encouraged by this progress, the government has set an ambitious target of reaching 20% blending by 2025 and is confidently progressing towards this goal.
Over the past decade, this initiative has delivered significant benefits, including saving Rs. 99,014 crore in foreign exchange, reducing CO2 emissions by 519 lakh metric tons, and substituting 173 lakh metric tons of crude oil. Furthermore, the program has had a considerable economic impact, with Oil Marketing Companies disbursing Rs. 1,45,930 crore to distillers and Rs. 87,558 crore to farmers.
Puri also highlighted the widespread availability of E20 fuel, which is now offered at over 15,600 retail outlets across India. He commended the Pradhan Mantri JI-VAN Yojana for its essential role in providing financial support to advanced biofuel projects, which is crucial for developing a sustainable ethanol production ecosystem.
The Petroleum Minister outlined several key government initiatives designed to enhance ethanol production and mitigate environmental impact. Notably, two second-generation (2G) refineries have been established in Panipat and Numaligarh to convert agricultural residues like Parali and bamboo into ethanol. These refineries are instrumental in reducing pollution and bolstering energy security while transforming farmers into "urjadata" or active contributors to the energy sector, he said.
To further support the ethanol industry, Puri said that the government has introduced various incentives for ethanol production. These include Rs. 9.72 per litre for ethanol derived from maize, Rs. 8.46 per litre for ethanol from damaged rice, and Rs. 6.87 per litre for ethanol from C-heavy molasses.
These incentives have significantly boosted maize’s contribution to ethanol production, which has risen to 36% in the 2023-24 Ethanol Supply Year (ESY) from a mere 0% in 2021-22. Additionally, he said, the government has resumed the supply of FCI rice to ethanol distilleries, allowing for the purchase of up to 23 lakh tonnes through e-auctions from August to October 2024. Starting from November 2024, the supply of sugarcane juice and syrup to distilleries will also commence, marking the start of the 2024-25 Ethanol Supply Year.
Puri emphasized the importance of diversifying feedstocks for ethanol production to ensure security and avoid over-reliance on any single source. The government’s ongoing policy of providing stable and remunerative prices for ethanol has effectively reduced pending arrears for sugarcane farmers, lessened crude oil import dependence, and contributed to foreign exchange savings while benefiting the environment.
A major milestone in ethanol fuel expansion was highlighted by Petroleum Minister with the successful launch of E100 fuel at over 400 retail outlets across the country. Puri urged Union Minister of Road Transport & Highways Nitin Gadkari to encourage automobile manufacturers to produce vehicles compatible with E100 fuel.
He addressed common misconceptions about ethanol blending, clarifying that blending ethanol with petrol not only improves engine performance by increasing the octane number but also enhances engine efficiency. Contrary to some concerns, ethanol’s presence in fuel helps prevent pre-ignition knock and improves overall engine operation.
Drawing from global practices, Puri cited Brazil’s successful use of high ethanol blends—up to 60-70% in vehicles—demonstrating the viability of high ethanol content. He reassured that India is committed to scaling up E20 production and supporting the transition with measures to facilitate the use of transition fuels in older vehicles. He also commended the automobile industry for its proactive approach, noting that manufacturers are not only producing new E20-compliant vehicles but are also developing retrofit kits for older models. These kits, which can be installed during regular servicing, represent a significant advancement in accommodating older vehicles and promoting biofuel adoption.
The Minister underscored the vital role of biofuels in reducing fossil fuel dependence and emissions, paving the way for a cleaner and more sustainable future. He discussed the Global Biofuels Alliance (GBA), established during India’s G20 presidency, which serves as a collaborative platform for sharing knowledge, advancing technology, and developing policies to harness the $500 billion opportunity in biofuels and accelerate global adoption through technology transfer. The India Bio-Energy & Tech Expo 2024 is being organized by the Indian Federation of Green Energy (IFGE) and MMACTIV Sci-Tech Communications Ltd.
The event will focus on driving growth in India's bioenergy sector, highlighting key government policies such as the National Policy on Biofuels 2018 and the SATAT Scheme on Compressed Bio Gas (CBG). It will also cover government initiatives like specific blending targets for ethanol, CBG, and SAF; the Repurpose Used Cooking Oil (RUCO) initiative; Galvanizing Organic Bio-Agro Resources Dhan (GOBARdhan); and the Samarth Mission.
