Overview of the National Policy on Biofuels

To promote the use of biofuels in the country, the Ministry of New and Renewable Energy designed and executed a current National Policy on Biofuels. Biofuels have garnered great attention worldwide in the last decade, and it is vital to stay up with the field’s rapid development. Biofuels are strategically important in India because they complement the government’s current initiatives, such as Make in India, Swachh Bharat Abhiyan, and Skill Development, and they offer an excellent opportunity to contribute to the ambitious goals of doubling farmers’ income, reducing imports, creating jobs, and converting waste to wealth. The protracted and considerable lack of indigenous feedstock for biofuel production has had a detrimental effect on India’s biofuels program, which must be corrected.

The National Biofuels Policy seeks to ensure that a sufficient quantity of biofuels is readily available on the market to meet demand at any given moment. 

Distinguishing characteristics of current National Policy on Biofuels

• To facilitate the extension of appropriate financial and fiscal incentives within each category, the Policy divides biofuels into “Basic Biofuels,” which include generation first biodiesel and bioethanol, which include generation second of ethanol, and MSW or municipal solid waste in order to reduce fuels, third-generation biofuels, bio-compressed natural gas, and other advanced bioenergy sources.
• Sugarcane juice, comprising materials such as sugar beets and Sweet Sorghums, starch-comprising materials such as corn and alternated food grains, cassava, such as wheat, rotten potatoes, and broken rice, and other materials deemed not fit for humans are all permitted for use in ethanol production under the Policy’s terms.
• Farmers face the threat of not receiving fair money for their crops during periods of surplus production. As a result, the Policy authorizes the utilization of food that is in surplus to manufacture ethanol for use in gasoline blends, subject to approval by NBCC.
• With an emphasis on Advance Biofuels, Policy offers Rs.5000 crore funding for the viability gap, which comes under the 2G scheme for ethanol’s biorefinery over a six-year period, adding to increased tax benefits and a higher purchasing price when compared to generation 1 biofuels.
• The Policies encourage the development of supply chain mechanisms for the production of biodiesel from unpalatable oilseed, spent cooking oil, and fast-growing crops.
• The policy paper explains the role and responsibility of all relevant Ministries and departments with regard to biofuels, with the goal of maximizing the efficacy of joint effort.

Now you understand What is the target of National Policy on biofuels. 

Expected Benefits of current National Policy on Biofuels

Reduce reliance on imports: 

Rs.28 crore is saved in 1 cr. Litre of E10(10% ethanol blended with 90% petrol) in foreign exchange at current exchange rates. Approximately 150 cr. Lit of ethanol is scheduled to be supplied during the ethanol supplies year 2017-2018, resulting in savings of around 4000 crore rupees in foreign cash. Let us check When was National Policy on biofuels was launched.

Why A more sanitary environment: 

Each year, one cr. Litre of E-10 decreases CO2 emissions by almost 20,000 tones. CO2 emissions are estimated to be decreased by 30 lakh tonnes during the 2017-18 years of ethanol supply. Further greenhouse gas reductions will be achieved by prohibiting crop burning and the conversion of agricultural residue/waste to biofuels.

Prolonged use of cooking oils for food preparation, particularly deep frying, is not good for health. 

Health Advantages: 

Utilizing spent cooking oil to generate biodiesel prevents utilized cooking oil from being diverted away from the food industry, which is a big issue in the United States.

Municipal Solid Waste Management is estimated that India generates sixty-two MMT of MSW per year. There are processes for converting garbage/plastic and municipal solid waste (MSW) to drop-in fuels. One tonne of this rubbish has the potential to reduce our reliance on fossil fuels by around 20%.

Investment in Rural Infrastructure: 

It is estimated that a 100 klpd biorefinery will require roughly Rs.800 crore in capital investment to operate. The Companies of Oil Marketing are now developing twelve 2G biorefineries at the cost of roughly Rs.10,000 crore. Increased construction of 2G biorefineries around the country would spur rural infrastructure investment.

Job Creation: 

According to the World Bank, a 100klpd 2G biorefinery could produce 1200 jobs at village level entrepreneurship, with the management in the supply chain.

Increased Income for Farmers: 

Through the use of 2G technology, farmers may convert agricultural residue or waste that would otherwise be burned into ethanol, which can subsequently be sold profitably if a market for the ethanol is established. Farmers are also concerned about not receiving an adequate price for their grain during periods of surplus production. Conversions of leftover grains and agricultural biomass in this manner can contribute to the stabilization of market prices.

Now you understand What is the target of National Policy on biofuels

Conclusion

The current edition of the National Biofuels Policy succeeds the previous edition, which was launched in 2009 and approved by the Union Cabinet in May 2018. As a result of the approach, the suggested goal of 20% biofuels blended with fossil-based fuels by 2030 will be aggressively sought. This was all about the current National Policy on Biofuels. We have explained everything related to the NPB, with its objectives and also when the National Policy on biofuels launched. Hope this information helps you out.