• India’s average ethanol blending rate with petroleum is estimated at 11.5% in 2023.
• India has proposed a target of 20% blending of ethanol in petrol and 5% blending of biodiesel in diesel by 2030.
• India targets to reduce the country’s carbon footprint by 30-35% by the year 2030.
• The production volume of biodiesel fuel in India was 185 million litres in 2022 and is aimed to increase to 200 million litres in 2023.

Biofuel: A Better Alternative of Electric Vehicles (EVs):

• For a transition to Electric Vehicles, existing internal combustion engine (ICE) vehicles and the supporting infrastructure need to be replaced entirely.
• It is a capital-intensive method.
• The required batteries and critical minerals used in EVs need to be imported.
• Mining of these critical minerals causes concerns to the environment.
• Biofuels can be used in existing ICE engines and infrastructure with little to no modifications (depending on the blending rates) and offer import independence.

Sustainable Biofuels:

• Biofuels are any fuel produced from biological matter or ''biomass''.
• Sustainable biofuels are produced from crop residues and other wastes, with low water and Greenhouse Gas (GHG) footprint.
• This can include agricultural and forestry crops and residues, organic by-products, and waste.
• Biofuels can help reduce emissions and contribute towards meeting Aotearoa New Zealand’s climate targets.

Biofuel Production in India:

• The current daily production of biogas and compressed biogas in India is 1151 MT. (Ministry of New and Renewable Energy,)
• This could increase to 1750 MT per day by 2025.

• India has substantially increased its share of renewable energy in the overall energy mix, experiencing a Compound Annual Growth Rate (CAGR) of approximately 22% over the last six years.
• In this period, India has expanded its solar and wind energy sectors at CAGRs of 38% and 30%, respectively.

Sustainable Biomass Use:

limited low-carbon alternatives

• The Energy Transitions Commissions’ report on ‘Bioresources within a Net-Zero Emissions Economy’, has recommended that biomass should be prioritised for use in sectors where there are limited low-carbon alternatives.
• There are four main types of low-carbon energy: wind, solar, hydro and nuclear power.
• Whereas petrol vehicles would probably not make the cut, long-haul aviation and road freight segments, where complete electrification may take longer to reach.
• According to the International Energy Agency (IEA), sustainable biofuel production needs to triple by 2030 to achieve net-zero emissions by 2050 globally.

Ethanol as a sustainable fuel

• Although first-generation (1G) ethanol is unlikely to fit the bill, second-generation (2G) ethanol could be counted as a sustainable fuel, especially if the production is decentralised.
• Decentralised biofuel production is achieved when crop residues do not have to be transported to a central manufacturing plant from a large distance.
• This might affect achieving economies of scale for the 2G plant.
• Balancing economies of scale with the energy needs (and costs) of biomass collection and transport across large distances is a major challenge.
• The Global Biofuels Alliance, launched during India’s G20 presidency could help drive innovation and technology development in establishing an efficient biomass supply chain and smaller-scale decentralised biofuel production units.

Challenges:

• In India, biofuel is synonymous with 1G ethanol, which is primarily sourced from food crops.
• The policy target in India of achieving 20% ethanol blending with petrol (E20) by 2025-26 is expected to be met from sugar cane and foodgrains.
• Second-generation (2G) ethanol is unlikely to contribute to achieving this target due to challenges related to feedstock supply chain and scaling up.

• Achieving true sustainability is complex, especially with respect to biofuels.
• Therefore, strategies should be carefully examined in the context of the larger ecosystem to avoid unintended negative consequences.

Why is diverting the surplus crop produce towards energy not sustainable?

Global warming:

• India’s crop yields have already stagnated, and global warming is expected to reduce yields.
• The same area under cultivation will produce less with time but will need to suffice for a growing population.
• Thus, to meet blending targets, India cannot depend on surplus crop production.

Groundwater depletion:

• The rates of groundwater depletion could triple during 2040-81 compared with the current rate.
• It is attributed to temperature rise and increase in crop water requirements.
• With such limited resources, food production should be prioritised over fuel.

Agriculture and GHG emissions:

• The agriculture sector is one of the hardest to abate in terms of direct GHG emissions.
• Thus, increasing GHG emissions from this sector for motor fuel production in order to decrease GHG emissions from the transport sector is an unnecessary balancing loop that would achieve little net benefit.

The Global Biofuel Alliance:

• It aims to serve as a catalytic platform, fostering global collaboration for the advancement and widespread adoption of biofuels and to promoting ethanol uptake.
• It is an initiative by India along with the leaders of Singapore, Bangladesh, Italy, USA, Brazil, Argentina, Mauritius and UAE on the sidelines of the G20 Summit in India.
• It intends to expedite the global uptake of biofuels by facilitating technology advancements, intensifying utilization of sustainable biofuels, shaping robust standard certification through the participation of a wide range of stakeholders.
• It will act as a central repository of knowledge and an expert hub.
• It can generate opportunities worth USD 500 billion in the next three years for G20 countries (Indian Biogas Association).