- According to the policy, the Government of India aims to increase the utilization of biofuels in the energy and transportation sectors by encouraging the production of biofuels from domestic sources over the next decade.
- This initiative aligns with broader goals such as the adoption of green fuels, enhancing national energy security, combating climate change, and fostering employment opportunities.
- The Ministry of New and Renewable Energy (MNRE) has set an indicative target of achieving a 20% blending of ethanol in petrol and a 5% blending of biodiesel in diesel by 2030.
- Currently, the blending percentages stand at around 2% for petrol and less than 0.1% for diesel.
- To efficiently realize this policy, the Ministry has outlined a roadmap that includes enhancing current ethanol and biodiesel production, establishing second-generation (2G) biorefineries, developing new feedstock for biofuels, implementing technological advancements, and facilitating the blending of biofuels with conventional fuels.
- The policy categorizes biofuels into two main types: Basic Biofuels, including first-generation (1G) bioethanol and biodiesel, and Advanced Biofuels, encompassing second-generation (2G) ethanol, municipal solid waste to drop-in fuels, third-generation (3G) biofuels, and bio-CNG.
- This categorization allows for the extension of appropriate financial and fiscal incentives under each category.
- Expanding the scope of raw materials for ethanol production, the policy permits the use of various sources such as sugarcane juice, sugar-containing materials, starch-containing materials, damaged food grains, and surplus food grains.
- Utilizing damaged and surplus food grains for ethanol production is expected to increase availability for the Ethanol Blended Petrol (EBP) Programme.
- Bioethanol is derived from materials rich in sugar, starch, or cellulosic content, while biodiesel includes methyl or ethyl esters of fatty acids from non-edible vegetable oil, acid oil, used cooking oil, animal fat, and bio-oil. Advanced biofuels encompass 2G ethanol, drop-in fuels, 3G biofuels, bio-CNG, bio-methanol, and other derivatives, offering alternatives compatible with existing engines.
- The policy also entails steps such as the Ethanol Blended Petrol (EBP) Programme, development of 2G ethanol technologies, Biodiesel Blending Programme, emphasis on drop-in fuels, and promotion of advanced biofuels like bio-CNG, bio-methanol, DME, bio-hydrogen, and bio-jet fuel.
- Additionally, the creation of a ‘National Biomass Repository’ aims to ensure the availability of biofuels produced from domestic feedstock.
- Through the National Policy on Biofuels, 2018, the government will implement various financial and fiscal measures to promote the effective development and adoption of biofuels.
- This includes a viability gap funding scheme of Rs. 5000 crore over six years for 2G ethanol Bio refineries, along with tax incentives and higher purchase prices compared to 1G biofuels.
- Surplus food grains can also be utilized for ethanol production with the approval of the National Biofuel Coordination Committee.
FAQs on the Government of India’s Biofuel Policy
1. What are the main objectives of the Government of India’s biofuel policy?
A: The policy aims to increase the utilization of biofuels in the energy and transportation sectors by promoting production from domestic sources. It aligns with broader goals such as adopting green fuels, enhancing national energy security, combating climate change, and fostering employment opportunities.
2. What are the indicative targets set by the Ministry of New and Renewable Energy (MNRE) regarding biofuel blending?
A: MNRE has set a target of achieving a 20% blending of ethanol in petrol and a 5% blending of biodiesel in diesel by 2030. Currently, the blending percentages stand at around 2% for petrol and less than 0.1% for diesel.
3. How does the government plan to achieve these targets?
A: The government plans to enhance current ethanol and biodiesel production, establish second-generation (2G) biorefineries, develop new feedstock for biofuels, implement technological advancements, and facilitate blending biofuels with conventional fuels.
4. How are biofuels categorized under the policy?
A: Biofuels are categorized into Basic Biofuels, including first-generation (1G) bioethanol and biodiesel, and Advanced Biofuels, encompassing second-generation (2G) ethanol, municipal solid waste to drop-in fuels, third-generation (3G) biofuels, and bio-CNG.
5. What raw materials are permitted for ethanol production under the policy?
A: The policy permits the use of various sources such as sugarcane juice, sugar-containing materials, starch-containing materials, damaged food grains, and surplus food grains for ethanol production.
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