A recent report by the World Economic Forum (WEF) identifies extreme weather events and critical changes to Earth’s systems as the top long-term risks to humanity. The overdependence on fossil fuels is a significant contributor to these factors.
The International Energy Agency’s World Energy Outlook 2023 highlights that fossil fuels comprise over 81 per cent of the global energy mix, accounting for over 73 per cent of human-caused greenhouse gas emissions. Bioeconomy has emerged as a promising solution to facilitate sustainable development. Bioeconomy is defined as a knowledge-based system that utilises renewable natural resources such as biomass for the production of energy, materials, and services. India’s abundant sunlight, land resources, and agriculture can be leveraged to this end.
The annual biomass availability in India is estimated to be around 750 million metric tonnes (MMT), with an additional surplus of approximately 230 MMT per year. The installed capacity for biomass production in the country has shown steady growth, achieving 10 gigawatts (GW) by FY22, at a CAGR of 4 pc. Bio-based products developed from renewable agricultural resources are environment-friendly and less toxic compared to their fossil-based counterparts.
India has already embarked on ambitious programmes of blending bioethanol and biodiesel with petrol and diesel, which has resulted in a reduction of GHG emissions by more than 42 million tonnes per year.
As per the estimate of the International Energy Agency (IEA), India could triple its biofuel use in the next seven years. India also has an ambitious target of achieving 30 pc share of EVs in passenger light duty vehicle (LDV) sales by 2030. While conventional biofuels and EVs are contributing towards reducing GHG emissions from the transport sector, rapid commercialisation of advanced fuels such as Sustainable Aviation Fuel, Bio-Hydrogen and SecondGeneration Ethanol is imperative for India to further decarbonise the transport sector and achieve the net-zero target. Currently, very few advanced fuels for transport sector are viable to produce commercially. Some of the advanced biofuels, such as SAF, have been successfully commercialised in the United States.
In India, the Government has already announced an indicative target to blend 1 per cent of SAF in jet fuel for international flights from 2027. India’s first commercial passenger flight using indigenously produced Sustainable Aviation Fuel (SAF) blend was successfully flown last year. Although the country has embarked on the path of use of SAF, commercial viability of SAF production is a formidable task.
The Global Biofuel Alliance launched by India at G22 Summit in the US last year has given boost to meet this challenge. According to Union Minister for Petroleum and Natural Gas Hardeep Singh Puri, this will facilitate greater international cooperation in the sector. The global biofuels market has jumped from its current value of $92 billion to $200 billion post the launch. Also, India has plans to establish the Indian Carbon Market (ICM), intending to decarbonise the Indian economy through the energy transition. Establishing a national carbon market that provides economic benefits to the fuel producers and tax incentives, both in line with the carbon/GHG emissions savings from sustainable fuels, can contribute in bridging the viability gap for SAF production, as well the production of other sustainable fuels, such as bio-hydrogen in India.
