National Biofuel Policy 2018 on Biofuels by Central Govt. with 1 Trillion Investment

Dated: March 9, 2018 | Updated On: March 9, 2018 | Category: Central Government
Beneficiary of Scheme:

Central government is going to launch National Biofuel Policy 2018 for sustainable development. Subsequently, this national policy on biofuels has potential of Rs. 1 lakh crore investment. Accordingly, Biofuel Policy India will enable adoption of second generation, advanced biofuels like ethanol in future.

Central Govt. will design this new national policy on biofuels in order to reduce carbon emissions by 40% till FY 2030. To achieve 40% reduction in Carbon Emission, it is necessary to assist non-food feedstock-based advanced biofuels and to develop these as industry of scale.

Oil Marketing Companies can sell Ethanol Blending Programme (EBP) with ethanol percentage upto 10% under Ethanol Policy India. In Union Budget 2018-19, central govt. has also focused on Waste to Wealth conversion projects which involves launch of Gobar Dhan Scheme to produce bio CNG.

National Biofuel Policy 2018 – Features

The important features and highlights of this new national policy on biofuels are as follows:-

  • This new national policy on biofuels will shift the focus from first generation (1G) biofuels which are based on sugar. 1G biofuels are made from molasses and vegetable oils and thus are polluting in nature.
  • Subsequently, Biofuel Policy India will enable utilization of other kinds of feedstock like cellulose based and lignocellulose materials. Accordingly, it will lead to “Waste to Wealth” economy.
  • New National Biofuel Policy 2018 will ensure cost-effective and pollution free import substitute of polluting fossil fuels.
  • Accordingly, lignocellulosic biomass / woody crops, agricultural residues and municipal waste gets converted to advanced 2G biofuels.
  • At present, level of ethanol blending in petrol is 2.5 per cent. Various Oil Marketing Companies (OMCs) are running Ethanol Blending Programme (EBP). Moreover, govt. will authorize OMCs to sell EBP with ethanol percentage upto 10% under Ethanol Policy India.
  • National Biofuel Policy 2018 will eliminate the problem of land use and other issues related to food security used in production of 1G biofuels.

Furthermore, govt. will implement this National Biofuel Policy 2018 in a mission mode to make our environment pollution free.

National Biofuel Policy 2018 – Incentives

Central govt. will provide incentives to all state-run oil marketing companies. These OMCs has made an agreement of long-term offtake of 2G ethanol under Biofuel Policy India. For this reason, OMCs are assuring suppliers for 15-year offtake contracts. Indian Oil Corporation (IOC) has recently signed an agreement with Punjab government. Under this agreement, IOC will establish various CNG plants in Punjab in upcoming 5 years.

In addition to this, OMCs are going to set up 12 advanced biofuel refineries in several states. IOC is currently operating 3 biofuel plants and plans to increase its capacity from 100 tonnes to 1200 tonnes per day in next 2 years.

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