India’s government has set ambitious ethanol blending targets under the National Policy on Bio-Fuels, including a 20% ethanol blending in petrol and 5% ethanol blending in biodiesel. The government’s ambitious goal is crucial for reducing fossil.
Fuel reliance and promoting renewable energy. However, progress has been slow, with a blending rate of 0.6% in FY25. , upgrading four railway stations in Tripura, and developing a 9km dedicated cycling route with the Centre for Green Mobility.
The government expects the total diesel consumption to reach 104,000 thousand metric tons by 2030. India’s biodiesel blending ratio has remained low relative to the blending target, with a 0.5% blending ratio in 2024. The government expects this ratio to rise to 0.6% in 2025.
Integrated players with edible oil refineries are best positioned to add capacities over the next few years. The Indian government is focusing on biodiesel blending to achieve its targets, but the progress has been slow due to factors such as a lack of an organized supply chain for collecting raw materials, the need for alternative feedstocks, and the unsuccessful use of Jatropha.
The National Policy on Biofuels-2018 identifies used cooking oil (UCO) as a potential raw material for biodiesel production, and the government is promoting the establishment of collection centres for UCO and other feedstocks.
To achieve the 5% biodiesel blending target, India requires a production capacity of 5.50 billion liters per annum, which requires substantial investments and strategic efforts over the next five years. OMCs have floated expression of interest tenders for the procurement of 3.7 billion liters of biodiesel (B100) between 2022 and 2025.
In conclusion, robust government support, strategic utilization of feedstocks, ongoing R&D, and public education will accelerate the progress and widespread adoption of biodiesel. The government is also focusing on enhancing infrastructure and connectivity across the state.
India’s National Policy on Biofuels-2018 sets an indicative target of achieving a 5% biodiesel blend in diesel by 2030. Achieving the 5% blending target necessitates significant investments in feedstock cultivation, production facilities, and distribution infrastructure.
This initiative aims to enhance energy security, reduce greenhouse gas emissions, and promote sustainable development. Currently, biodiesel blending in India remains low, with blending levels at approximately 0.7%, falling short of the government’s target.
The government has implemented several measures to promote biodiesel utilization, including reducing the Goods and Services Tax (GST) rate for biodiesel supplied to Oil Marketing Companies (OMCs) from 12% to 5% in October 2021. Additionally, public sector OMCs are offering remunerative prices for biodiesel procurement.
Despite these efforts, challenges persist, particularly in securing sustainable, non-food feedstocks and upgrading existing infrastructure for biodiesel handling. Addressing these challenges is crucial to meet the 2030 blending target and reduce reliance on imported fossil fuels.
In conclusion, achieving a 5% biodiesel blend in India’s diesel supply by 2030 requires substantial investment and concerted efforts from both the public and private sectors. Overcoming existing challenges will be pivotal in enhancing energy security and promoting sustainable development in the.
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