Q.h - Biofuel and India's Policy

h 6 Marks

What is biofuel? Discuss the biofuel policy in India.

Answer: Biofuel and India's Biofuel Policy

1. Definition of Biofuel

Biofuel is renewable fuel derived from organic biomass materials such as plants, agricultural residues, algae, or animal waste. Unlike fossil fuels formed over millions of years, biofuels can be produced from contemporary biological sources, making them part of the current carbon cycle and potentially carbon-neutral.

2. Types and Generations of Biofuels

Generation	Biofuel Type	Feedstock	Production Process
1st Generation (Conventional)	Bioethanol	Sugarcane, corn, wheat, sugar beet	Fermentation of sugars/starches
1st Generation (Conventional)	Biodiesel	Vegetable oils, animal fats, used cooking oil	Transesterification
2nd Generation (Advanced)	Cellulosic Ethanol	Agricultural residue, wood, grass	Enzymatic hydrolysis + fermentation
2nd Generation (Advanced)	Advanced Biodiesel	Non-edible oilseeds (jatropha), waste oils	Transesterification, hydroprocessing
3rd Generation	Algal Biofuel	Microalgae, macroalgae	Lipid extraction, processing
4th Generation	Synthetic Biofuel	Genetically modified organisms	Metabolic engineering (R&D stage)
-	Biogas/Bio-CNG	Organic waste, animal dung, sewage	Anaerobic digestion

3. Biofuel Production Processes

A. Bioethanol Production

Sugar-based: Sugarcane juice/molasses → Fermentation (yeast) → Distillation → Ethanol
Starch-based: Corn/wheat → Enzymatic conversion to sugars → Fermentation → Ethanol
Cellulosic: Biomass → Pretreatment → Hydrolysis → Fermentation → Ethanol

B. Biodiesel Production

Transesterification: Vegetable oil + Alcohol (methanol) + Catalyst → Biodiesel + Glycerol
Hydroprocessing: Oils treated with hydrogen at high temperature/pressure → Renewable diesel

4. National Policy on Biofuels - 2018 (Amended 2022)

Key Objectives:

Reduce import dependency on crude oil
Promote indigenous biofuel production
Enhance farmers' income through biofuel feedstock sales
Create rural employment opportunities
Promote cleaner environment through reduced emissions
Improve waste management by converting waste to energy

A. Blending Targets

Ethanol Blending Target: E20 (20% ethanol in petrol) by 2025-26 (advanced from original 2030 target)
Biodiesel Blending Target: 5% biodiesel in diesel by 2030
Current Achievement (2024): ~12% ethanol blending achieved (E12)

B. Expanded Feedstock Categories

Category	Feedstocks Allowed	Purpose
Basic (1G)	Sugarcane juice, sugar, molasses, grains	Ethanol production
Advanced (2G)	Agricultural residue (rice straw, wheat straw, corn cobs), forest residue, industrial waste	Cellulosic ethanol
Biodiesel	Non-edible oilseeds, used cooking oil, animal fats, acid oils	Biodiesel production

C. Financial Support and Incentives

Viability Gap Funding: Rs. 5000 crore for 2G ethanol bio-refineries
Higher Purchase Prices: 2G ethanol priced higher than 1G to incentivize advanced biofuels
GST Concessions: Reduced GST rates on ethanol for blending
Interest Subvention: Reduced interest rates for distillery expansion
Customs Duty Exemption: On machinery for biofuel production

5. Major Government Programs and Initiatives

Key Schemes:

Ethanol Blended Petrol (EBP) Programme: Mandatory blending by Oil Marketing Companies (OMCs)
SATAT Scheme: Sustainable Alternative Towards Affordable Transportation - targets 5000 Compressed Bio-Gas (CBG) plants by 2025
GOBAR-DHAN: Galvanizing Organic Bio-Agro Resources - biogas from cattle dung and organic waste
PM JI-VAN Yojana: Support for 2G ethanol projects with viability gap funding
RUCO (Repurpose Used Cooking Oil): Biodiesel from waste cooking oil - targets 220 cities
National Biofuel Coordination Committee: Inter-ministerial coordination body

6. Benefits of India's Biofuel Policy

Category	Benefits
Economic	- Foreign exchange savings (~Rs. 30,000 crore/year at E20) - Reduced import bill for crude oil - Additional income for farmers (sugarcane, grains) - Rural employment generation
Environmental	- Reduced GHG emissions (lifecycle CO2 savings) - Cleaner combustion (less particulate matter) - Reduced stubble burning (2G ethanol uses crop residue) - Waste management improvement
Energy Security	- Reduced dependence on imported fossil fuels - Diversified energy supply - Indigenous resource utilization
Social	- Better prices for agricultural produce - Rural infrastructure development - Health benefits from cleaner air

7. Current Status and Challenges

Achievements (2024):

Ethanol production capacity: 1300+ crore liters
Blending achievement: ~12% (from <2% in 2014)
2G ethanol plants: 5 commissioned, more under construction
CBG plants under SATAT: 100+ operational

Challenges:

Feedstock Availability: Competition between food and fuel crops
Infrastructure: Need for more distilleries, storage, blending facilities
Technology: 2G ethanol technology still maturing, higher costs
Supply Chain: Collection and transportation of agricultural residue
Vehicle Compatibility: Older vehicles may need modifications for higher blends

Conclusion

India's National Biofuel Policy represents a comprehensive approach to energy security, environmental sustainability, and rural development. By promoting ethanol blending, biodiesel production, and bio-CNG, the policy addresses multiple objectives simultaneously. The ambitious E20 target by 2025-26 requires continued investment in production capacity, technology development, and supply chain infrastructure. Success will significantly reduce India's oil import dependence, create economic opportunities for farmers, and contribute to climate goals. The focus on 2nd generation biofuels from agricultural waste adds additional environmental benefits by addressing stubble burning.

Sources: Module 2 Notes | National Policy on Biofuels 2018 | Ministry of Petroleum and Natural Gas | PIB | NITI Aayog