Hardeep Singh Puri, the Minister for Petroleum & Natural Gas, presented a detailed account of India’s progress in the bioenergy sector and its critical role in the country's energy transformation. Minister Puri emphasized that bioenergy is increasingly becoming a crucial alternative to fossil fuels, offering both environmental benefits and economic opportunities, particularly in rural areas.
In his address, Minister Shri Puri elaborated on the Indian government’s strategic efforts to advance the bioenergy sector, highlighting its significance in reducing import dependence, saving foreign exchange, and promoting a circular economy. The government’s strategy encompasses several vital areas, including ethanol and biodiesel blending, Compressed Biogas (CBG), Sustainable Aviation Fuels, biomass utilization (such as pellets and briquettes), Biohydrogen, and waste-to-energy solutions.
One of the standout achievements discussed by Shri Puri was the success of India’s ethanol blending program. Since its inception, the ethanol blending percentage has surged from 1.53% in 2014 to 15% in 2024. Encouraged by this progress, the government has set an ambitious target of reaching 20% blending by 2025 and is confidently progressing towards this goal. Over the past decade, this initiative has delivered significant benefits, including saving Rs. 99,014 crore in foreign exchange, reducing CO2 emissions by 519 lakh metric tons, and substituting 173 lakh metric tons of crude oil. Furthermore, the program has had a considerable economic impact, with Oil Marketing Companies disbursing Rs. 1,45,930 crore to distillers and Rs. 87,558 crore to farmers.
Minister Shri Hardeep Singh Puri also highlighted the widespread availability of E20 fuel, which is now offered at over 15,600 retail outlets across India. He commended the Pradhan Mantri JI-VAN Yojana for its essential role in providing financial support to advanced biofuel projects, which is crucial for developing a sustainable ethanol production ecosystem.
The Petroleum Minister Shri Puri outlined several key government initiatives designed to enhance ethanol production and mitigate environmental impact. Notably, two second-generation (2G) refineries have been established in Panipat and Numaligarh to convert agricultural residues like Parali and bamboo into ethanol. These refineries are instrumental in reducing pollution and bolstering energy security while transforming farmers into "urjadata" or active contributors to the energy sector, he said.
To further support the ethanol industry, the Minister Shri Puri said that the government has introduced various incentives for ethanol production. These include Rs. 9.72 per litre for ethanol derived from maize, Rs. 8.46 per litre for ethanol from damaged rice, and Rs. 6.87 per litre for ethanol from C-heavy molasses. These incentives have significantly boosted maize’s contribution to ethanol production, which has risen to 36% in the 2023-24 Ethanol Supply Year (ESY) from a mere 0% in 2021-22. Additionally, he said, the government has resumed the supply of FCI rice to ethanol distilleries, allowing for the purchase of up to 23 lakh tonnes through e-auctions from August to October 2024. Starting from November 2024, the supply of sugarcane juice and syrup to distilleries will also commence, marking the start of the 2024-25 Ethanol Supply Year.
Copyright © 2017 Indian Grapevine a unit of Integrated Media Enterprises
