Addressing the Challenges in the Indian Biofuel Sector

Kishan Karunakaran is steering the growth of Buyofuel as its CEO. A visionary leader, he comes with over 12 years of experience and a proven track record as a biofuels entrepreneur. Under his stellar leadership, the company is successfully empowering trading of biofuel-based commodities in a quick and secured manner by providing a platform with verified buyers and sellers. 

Biofuels have been a part of India's energy landscape for over a decade now. As biofuels can cut carbon emissions and combat climate change, their demand is rising significantly. Global demand is projected to grow by 28% from 2021 to 2026. In the coming years, one can witness a shift towards using biofuels across various sectors to achieve lower carbon emissions.

Also, biofuels currently cost 10% to 20% less than the fossil fuels they replace. This lower price helps shield biofuels from international price fluctuations. Since biofuels are made in India, there's no risk from currency changes, unlike imported fossil fuels. This stability means consumers can expect steady prices for petrol and coal products, making domestically made biofuels a reliable choice.

Despite their numerous benefits, including reduced carbon footprint and potential to combat climate change, the widespread adoption of biofuels faces significant challenges in the Indian market.

Even though there's an abundance of biofuel materials, growth in this sector has been hindered by limited access and regulations. Low public awareness, a lack of technical expertise, and concerns about quality, transparency, and infrastructure have all contributed to the industry's struggle to expand. It's essential to establish an ecosystem that fosters collaboration among all stakeholders within the biofuel community.

A variety of agricultural and wood residues, including sawdust, woodchips, rice husk, soya husk, cashew shell, and other biomass products, are used for solid biofuel production. Liquid fuels, on the other hand, are created from UCOs, waste tires, and plastic waste. The current focus should be on reducing carbon emissions by using emission-reducing feedstocks for biofuel production, sourced solely from agricultural and human-generated waste. This approach ensures sustainability of biofuels with minimal impact on the environment.

Using fuels derived from waste agricultural feedstocks enables significant reductions in greenhouse gas emissions. However, the biofuel industry is still in its early stages, with limited awareness among individuals, large corporations, and farmers. Hence, efforts should be made to build a robust ecosystem through various marketing campaigns, both online and conventional, aimed at raising awareness and directly engaging with farmers. Additionally, measures need to be implemented to ensure that feedstocks previously burned as stubble are now redirected to biofuel manufacturers in some capacity.

Different processes like gasification, pyrolysis, liquefaction, and direct combustion are employed to convert feedstocks into biofuels, each with varying efficiencies and scalability. For instance, briquettes are a coal substitute with high energy efficiency and scalability, suitable for industrial boilers. However, gaseous biofuels require more R&D and government support for development and adoption.

Quality assurance and transparency issues also pose significant challenges. The absence of robust quality standards and transparent processes raises concerns among consumers and investors, impacting the industry's credibility and hindering its expansion. Moreover, inadequate infrastructure, such as storage facilities and distribution networks, adds to the complexities faced by biofuel producers and suppliers.

The real challenge lies not in sourcing raw materials but in transporting biofuels from manufacturers to consumers based on weight. Lower weight means higher transport costs, with solid biofuels ranging from 8 to 22 tons and liquid fuels from 7KL to 40 KL. Geographical dispersion of biomass materials also impacts prices and usability. To address these transport challenges, a well-functioning transport system must be established for smooth mobility.

Government initiatives like the 10% coal replacement mandate and targets for E20 and B10 implementation in the transport sector show a commitment to increasing biofuel use. This will lead to more waste materials entering the biofuel value chain in the future, with evolving technology enabling efficient conversion of waste into biofuels, expanding feedstock options and improving industry viability.

In the short term, solid biofuels such as biomass briquettes, pellets, and agricultural waste will play a crucial role, driven by coal replacement mandates and the shift towards an E20-based transport system. In the long term, Bio-CNG and green hydrogen will become significant players as technology advancements reduce manufacturing costs, making them more economically viable and sustainable for energy consumption. This long-term perspective highlights the changing landscape of biofuels.

Additionally, given that industries contribute to over 70% of India's CO2 emissions, biofuels are crucial in mitigating it. Especially industries like cement, steel, paper, power, and infrastructure must transition to reduce carbon emissions, aiding India's net-zero targets. Enforcing strict emission regulations and establishing a robust carbon credit market will incentivize industries to reduce their carbon footprint through biofuel usage. Monitoring and enforcement mechanisms will ensure compliance, fostering a low-carbon economy and driving India's sustainable energy transition.