News Highlights
- Cabinet approves Amendments to the National Policy on Biofuels -2018
About National Policy on Biofuels -2018
- Objective of Policy
- Aim – To assure adequate and long-term supply of indigenous feedstock for biofuel production, boosting farmer income, reducing imports, creating jobs, and turning waste into riches.
- This strategy demonstrates the Centre’s commitment to enhancing the country’s energy infrastructure while also advancing the sustainability agenda.
- Salient Features of Policy
- Type of Biofuels – Biofuels are classified as “Basic Biofuels” under the Policy, i.e. First Generation (1G) bioethanol and biodiesel, as well as “Advanced Biofuels” – Second Generation (2G) ethanol, Municipal Solid Waste (MSW) to drop-in fuels, Third Generation (3G) biofuels, bio-CNG, and others – to allow for the extension of appropriate financial and fiscal incentives under each category.
- Scope of raw materials – Sugarcane juice, sugar-containing materials like Sugar Beet, Sweet Sorghum, starch-containing materials like Corn, Cassava, damaged food grains like wheat, broken rice, and rotten potatoes, all of which are unfit for human consumption, are now allowed to be used as raw materials for ethanol production.
- Biodiesel Production – Biodiesel production is encouraged by the policy, which fosters the establishment of supply chain mechanisms for biodiesel production from non-edible oilseeds, used cooking oil, and short-gestation crops.
- Farmers’ protection: During the surplus production phase, farmers are at risk of not receiving a fair price for their crop. In light of this, the Policy permits the use of surplus food grains for the manufacturing of ethanol for use in gasoline blends with the consent of the National Biofuel Coordination Committee.
- Funding – With a focus on Advanced Biofuels, the Policy proposes a Rs.5000 crore viability gap finance scheme for 2G ethanol Bio refineries over 6 years, in addition to additional tax incentives and a higher purchase price than 1G biofuels.
- Benefits of Policy
- It helps the country become less reliant on imports.
- It contributes to a cleaner environment by reducing crop burning by converting agricultural waste and residue into bioethanol.
- Cooking oil reuse poses serious health risks, yet it might be used as a biodiesel feedstock.
- It also contributes to the management of municipal solid waste (MSW). Waste/plastic in MSW can be converted to biofuels using available technology. One tonne of this garbage has the potential to reduce fuel use by roughly 20%.
- The production of biofuels will contribute to the creation of jobs.
- Conversion of surplus grains and agricultural biomass can help stabilise prices and offer farmers an extra source of revenue.
Amendments in National Biofuel Policy – 2018
- To allow more feedstocks for production of biofuels,
- To advance the ethanol blending target of 20% blending of ethanol in petrol to ESY 2025-26 from 2030,
- To promote the production of biofuels in the country, under the Make in India program, by units located in Special Economic Zones (SEZ)/ Export Oriented Units (EoUs),
- To add new members to the NBCC.
- To grant permission for export of biofuels in specific cases,
- To delete/amend certain phrases in the Policy in line with decisions taken during the meetings of National Biofuel Coordination Committee
What is a Biofuel?
- Biofuel is a hydrocarbon fuel that is created directly or indirectly from organic matter. Biofuels are typically made from biomass using a modern technique (rather than a slow geological process). They are fuels that can be used instead of traditional fossil fuels.
Way Forward
- Biofuels play a vital role in developments of future green energy and reducing dependence on fossil fuel. It also helps the country’s economy to save forex.
Content Source : PIB