Biofuels in India

Any hydrocarbon fuel that is produced from an organic matter within a short period of time is considered a biofuel. It may be solid, liquid or gaseous in nature.

Solid: Wood, dried plant material, and manure

Liquid: Bioethanol and Biodiesel

Gaseous: Biogas

Generations of biofuel

First generation

• Sourced from food-based plants containing energy molecules
• Limited biofuel yield
• May have negative impact on food security
• Ex.: bioethanol and biodiesel

Second generation

• Use feedstock of lignocellulosic plant material
• Includes non-food-based items or by-products of food crops that are considered waste such as straw, bagasse, forest residues
• Reduced greenhouse gas emission compared to 1G
• Limited commercial scale production
• Ex.: biodiesel and cellulose ethanol

Third generation

• Primarily based on microorganisms like algae for production
• Provides high-yield and does not rely on arable land use
• Fertilizers used for its production may cause environmental pollution
• Still in the research and development stage

Fourth generation

• Also known as photobiological solar fuels
• Crops are genetically modified to absorb large amounts of carbon and then converted into fuel using second-generation techniques.
• Inexhaustible, cheap and widely available
• Some of these fuels are considered carbon-negative
• Still in early stages of research

The two most widely used biofuel types are

1. Sugar-based bioethanol production
2. Fatty acid methyl ester-based biodiesel

Benefits for Biofuel use

• Biofuels offer both advantages and disadvantages in terms of environmental, economic and social sustainability.
• Reduction in greenhouse gas (GHG) emissions
• Increases energy security through lower import of crude oil
• Increase participation of local entrepreneurs and sugarcane farmers in the energy economy
• Supports overall rural development
• Decrease vehicular emissions

Initiatives taken

Initiatives by the Department of Biotechnology, Ministry of Science and Technology

• It developed technology for 2G Ethanol, Indigenous Cellulolytic Enzyme for biofuel production and micro algae-based sewage treatment.
• Expanded global cooperation through initiatives like Mission Innovation and Bio Future Platform to reach target goals faster

Pradhan Mantri JI-VAN Yojana

• Launched in 2019
• Aims to foster an environment for the development of business ventures
• Aids to advance research and development in the 2G ethanol market

Ethanol blending

• Biofuel Policy, 2018 has set target of reaching 20% ethanol-blending and 5% biodiesel-blending by the year 2030.
• The Government has reduced GST on ethanol blending from 18% to 5%.

GOBAR (Galvanizing Organic Bio-Agro Resources) DHAN scheme

• Launched in 2018 under the Swachh Bharat Mission (Gramin)
• Focused on utilizing solid farm waste into compost, biogas, and bio-CNG, which in turn keeps villages clean and boosts rural economy

Repurpose Used Cooking Oil (RUCO)

• Launched by the Food Safety and Standards Authority of India (FSSAI)
• Creates an ecosystem where used cooking oil is collected and converted to biodiesel

National Policy on Biofuels

• Launched in 2018 by Ministry of Petroleum and Natural Gas
• Categorization of biofuels to better target extension of financial and fiscal incentives. The two main categories are:
  • Basic Biofuels- First Generation (1G) bioethanol & biodiesel
  • Advanced Biofuels – Second Generation (2G) ethanol, Municipal Solid Waste (MSW) to drop-in fuels, third Generation (3G) biofuels, bio-CNG etc.
• Expanded scope of raw material for ethanol production by allowing use of Sugarcane Juice, sugar containing materials, starch containing materials, and damaged food grains unfit for human consumption
• Allowed use of surplus food grains for production of ethanol to ensure appropriate price to farmers with the approval of the National Biofuel Coordination Committee.
• Viability gap funding scheme for 2G ethanol Bio refineries in addition to tax incentives and higher purchase price
• Encourages setting up of supply chain mechanisms for biodiesel production from non-edible oilseeds, used cooking oil, short gestation crops.

Challenges

• Potential food security and water challenges posed as sugarcane is a water intensive crop grown on land meant for food production
• India is currently a net importer of ethanol as per reports released by Niti Aayog which means that it is yet to contribute to increase in energy security.
• The gains in tailpipe emissions from ethanol blending too small and may become redundant with the push for electrifying surface transport.
• Benefit to farmers and rural economies from biofuel production in Indian scenario may bring few benefits at very high cost.