Biofuels

Biofuels

Bio-ethanol is looked upon as a means to reduce India’s oil import dependency, save forex, address environmental issues and give a boost to domestic agriculture sector.

Blending of bio-ethanol in petrol has not only augmented India’s energy security but also translated into a forex impact of over Rs.41,500 crores, reduced GHG emissions of 27 lakh MT and also led to the expeditious payment of over Rs.40,600 crores to farmers.

Encouraged by the progress, the National Biofuels Policy has been amended and the target of 20% ethanol blending was advanced from 2030 to 2025-26.

PSU OMCs are setting up 12 2G bio-refineries with an investment of Rs.14,000 crore.

Sustainable Alternative Towards Affordable Transportation (SATAT) was launched on 1st October 2018 aiming to establish an ecosystem for production of Compressed Bio Gas (CBG) from various waste/ biomass sources in the country.
The scheme envisages setting up of 5000 CBG plants for production of 15 Million Metric Ton (MMT) per annum of CBG by 2023-24.
As on 31st October 2022 Oil and Gas Marketing Companies participating in SATAT have issued 3694 Letters of Intent (LoI) to entrepreneurs for procurement of CBG produced by them. Further, 38 CBG/biogas plants with installed capacity around 225 MT per annum have been commissioned by LoI holders.
CBG sector offers an attractive and green investment opportunity for local as well as global investors.

MoP&NG announced a Biodiesel Purchase Policy which became effective 1st January 2006.
Presently, bio-diesel is being produced in the country primarily from imported palm stearin oil. In order to phase-out palm stearin, and as a measure towards import substitution, it has been decided to promote domestically available used cooking oil (UCO) as the feedstock.
UCO has been identified as a potential raw material for biodiesel production in National Policy on Biofuels-2018. UCO can be collected from Bulk Consumers such as hotels, restaurants, canteens, etc. for conversion.
Oil Marketing Companies (OMCs) are periodically floating Expression of Interest (EoI) for procurement of Biodiesel produced from UCO.