National Policy on Biofuels, 2018

The National Policy on Biofuels, 2018 is the Government of India’s framework to promote the production and use of biofuels. It aims to reduce crude oil imports, improve energy security, lower emissions, support farmers, and utilise agricultural and other organic waste.

It is administered by the Ministry of Petroleum and Natural Gas (MoPNG) and replaced the earlier National Policy on Biofuels, 2009. The policy was significantly amended in 2022.

What are Biofuels?

Biofuels are fuels produced from renewable biological materials or biomass. They can substitute or supplement conventional fossil fuels.

Major examples include:

• Ethanol: Blended with petrol.
• Biodiesel: Can substitute or blend with conventional diesel.
• Compressed Bio-Gas (CBG): Produced from biodegradable waste.
• Sustainable Aviation Fuel (SAF): Bio-based alternatives to conventional aviation turbine fuel.
• Advanced biofuels: Produced using newer technologies and non-food feedstocks.

Classification of Biofuels

The policy broadly categorises biofuels into Basic Biofuels and Advanced Biofuels.

1. Basic Biofuels

These include established biofuels such as:

• First-generation (1G) bioethanol
• Biodiesel

Ethanol can be produced from permitted feedstocks such as sugarcane-based materials, maize, damaged foodgrains and other approved sources.

2. Advanced Biofuels

These generally use advanced technologies or waste-based/non-food feedstocks.

Examples include:

• Second-generation (2G) ethanol
• Municipal Solid Waste-to-fuel
• Bio-CNG/CBG
• Drop-in fuels
• Algal biofuels
• Other emerging biofuels

Major Objectives of the Policy

The National Policy on Biofuels seeks to:

• Reduce India’s dependence on imported fossil fuels.
• Improve national energy security.
• Promote cleaner alternatives to petrol and diesel.
• Increase farmers’ income through alternative uses of agricultural produce.
• Convert agricultural residues and waste into valuable energy.
• Reduce environmental pollution and greenhouse gas emissions.
• Encourage domestic biofuel industries and new technologies.

Ethanol Blending Programme

A major component of India’s biofuel strategy is the Ethanol Blended Petrol (EBP) Programme.

What is E20?

E20 = 80% petrol + 20% ethanol by volume.

India advanced its target for achieving 20% ethanol blending in petrol from 2030 to Ethanol Supply Year 2025–26.

Higher ethanol blending can:

• Reduce crude oil and petrol imports.
• Save foreign exchange.
• Create demand for domestic agricultural feedstocks.
• Reduce certain vehicular emissions.
• Strengthen the domestic biofuel industry.

Feedstocks for Ethanol Production

India has progressively expanded the range of permitted ethanol feedstocks.

Important sources include:

Sugar-based feedstocks

• Sugarcane juice
• Sugar syrup
• Molasses

Grain-based feedstocks

• Maize
• Damaged foodgrains
• Surplus or eligible foodgrains as permitted by government policy

Cellulosic materials for 2G ethanol

• Rice straw
• Wheat straw
• Bagasse
• Agricultural residues

This feedstock diversification reduces excessive dependence on a single crop.

1G, 2G, 3G and 4G Biofuels

Generation	Main Source	Examples
1G	Food/sugar/starch/oil crops	Sugarcane ethanol, maize ethanol, biodiesel
2G	Agricultural and lignocellulosic waste	Ethanol from rice straw, bagasse
3G	Algae and other advanced biological sources	Algal biofuels
4G	Advanced biotechnology and carbon-capture-linked processes	Next-generation engineered biofuels

Why are 2G Biofuels Important?

Second-generation biofuels can use crop residues that might otherwise be burnt.

Therefore, they can help:

• Reduce stubble burning.
• Manage agricultural waste.
• Generate additional farmer income.
• Reduce competition between food and fuel.

Institutional Framework

The policy provides for the National Biofuel Coordination Committee (NBCC).

It plays an important role in:

• Coordinating biofuel policy.
• Reviewing implementation.
• Considering feedstock-related issues.
• Taking policy decisions on emerging biofuel requirements.

The Ministry of Petroleum and Natural Gas is the nodal ministry for the policy.

Related Government Initiatives

SATAT Initiative

SATAT – Sustainable Alternative Towards Affordable Transportation promotes the production of Compressed Bio-Gas (CBG) from waste and biomass.

Potential feedstocks include:

• Agricultural waste
• Cattle dung
• Municipal organic waste
• Sewage treatment plant waste

PM JI-VAN Yojana

The Pradhan Mantri JI-VAN Yojana promotes advanced biofuel projects, particularly those using lignocellulosic biomass and other renewable feedstocks.

It supports India’s transition towards advanced biofuels and better utilisation of agricultural residues.

Challenges Associated with Biofuels

Despite their benefits, large-scale biofuel production has several challenges:

• Food vs fuel conflict: Food crops may be diverted towards fuel production.
• Water consumption: Crops such as sugarcane can have high water requirements.
• Land-use concerns: Expansion of energy crops may compete with food production.
• Feedstock availability: Agricultural residues are seasonal and geographically dispersed.
• Logistics: Collection, storage and transportation of biomass can be expensive.
• Lifecycle emissions: Environmental benefits depend on how feedstocks are grown, processed and transported.

Therefore, India is increasingly focusing on feedstock diversification, 2G ethanol, waste-to-energy and advanced biofuels.

Important Facts for Exams

• National Policy on Biofuels: Launched in 2018 and amended in 2022.
• Nodal Ministry: Ministry of Petroleum and Natural Gas.
• It replaced the National Policy on Biofuels, 2009.
• E20: Petrol containing 20% ethanol by volume.
• 1G biofuels: Primarily produced from conventional sugar, starch or oil-based feedstocks.
• 2G biofuels: Primarily use lignocellulosic biomass and agricultural residues.
• SATAT: Sustainable Alternative Towards Affordable Transportation.
• CBG: Compressed Bio-Gas.
• PM JI-VAN Yojana: Supports advanced biofuel projects.
• National Biofuel Coordination Committee (NBCC): Important coordinating mechanism under India’s biofuel policy.
• Biofuels support energy security, import substitution, farmer income, waste management and emission reduction.