Fueled by a mix of sugarcane and grain-based biofuel production and backed by strong policy support, India’s ethanol success story is as much about clean energy as it is about empowering farmers and building a more resilient, self-reliant economy
Due to the increasing trend of green house gases (GHGs) after burning of fossil fuels, the global climate change impacts are affecting the environment, ecology, flora and fauna. The fossil fuels in the transportation, thermal power generation and other man-made activities create carbon footprints, and the built — environment becomes carbonised. There has been huge challenges in the environment, such as air and water pollution, waste disposal, electricity generation with carbon emissions. To address these challenges, Government of India have taken some key initiatives like bio-fuel policy, green hydrogen mission, net zero emission by 2030, 500 GW power generation from renewable energy by 2030. The Hon’ble Union Minister of Petroleum and Natural Gas during India Energy Week held in February 2025 at New Delhi stated that there has been a link between economic activity and energy use and there will be requirement of more energy as time passes from $4 trillion to $10 trillion economy and beyond. India is moving ahead on sustainable aviation fuel (SAF). It is preparing the ground for biofuels to be integrated into its supply chain. India has set a target of 5 per cent blending in SAF mandatory by 2030 and there is an opportunity for the export of the fuel of the future. India is also striving to increase the share of gas in the economy to 15 per cent from six per cent. Apart from this, India has also set a target of production of five million metric tons of green hydrogen annually.
Sustainable Biofuel Opportunity For India’s Energy Transition
As India has entered into the transitions towards a cleaner and more sustainable energy solutions, the role of biofuels has emerged as a critical component in reducing carbon emissions and mitigating threat of energy security. Its adoption of biofuels in the energy mix across the globe has been muted as it still faces scrutiny regarding food security, higher costs, and deforestation.
The Global Biofuels Alliance (GBA) roundtable at India Energy Week 2025 brought together policymakers, industry leaders and international organisations to address the pressing need for harmonised sustainability criteria for biofuels.
The leaders called for collaborative action to develop transparent, inclusive, and adaptable sustainability frameworks, which would enable sustainable biofuels’ broader adoption and long-term success.
The industry’s huge potential, including its ability to decarbonise and deliver one-third of today’s natural gas consumption and reduce global greenhouse gas emissions by 11 per cent has also been considered as one of the positive steps towards net zero emissions drive by 2030. Charlotte Morton Chief Executive of the World Biogas Association, however, has said that there are many challenges due to the lack of acceptability and acknowledgement of biofuels and various discouraging statements about bioenergy.
The biofuels industry is seeking the rightful place in the global energy dialogue. They are critical to decarbonising hard-to-abate sectors like transportation, aviation, shipping, and heavy industries.
Roberto Bocca, Head, Centre for Energy and Materials, and Member of the Executive Committee at World Economic Forum said that the future of bioenergy systems is more complex because they bring more opportunities. More opportunities mean more complexities, meaning infrastructure investment will depend on clarity.
“So, it is critical that we understand the direction, size, volume, and not just the taxonomy but also the potential of these different solutions. This will mean the investments can flow more confidently,” said Bocca.
Over a year after the inception of GBA, led by the US, Brazil, and India, the alliance has expanded to include 28 countries and 12 organisations, including the World Bank, the World Economic Forum, and the International Energy Agency. It is playing a pivotal role in increasing the adoption of sustainable biofuels on the global stage. The joint collaborative efforts by the industry and academia on sustainable biofuels emphasised a shared commitment to accelerating biofuel development, adoption, and integration into the global energy mix, emphasising international cooperation, policy support, and technological advancements.
The Policymakers also explored the potential of non-food feedstocks in advancing India’s biofuels sector, key opportunities, challenges, and policy considerations for scaling sustainable biofuels and strengthening energy security.
Biofuel for Sustainability
Using agriculture residue for ethanol and SAF production also addresses the problem of stubble burning and allows farmers to generate additional income from waste. It is just one of the agricultural residues (including maize, sugar, used cooking oil, besides municipal waste) that can be supplied as sustainable fuels to the industry. Alternate feedstock, such as sweet sorghum, seaweed, and reusable plastic waste, can give further impetus to SAF’s potential in the country.
As the world shifts to optimal use of all resources, municipal solid waste could be a key input for SAF. Its potential could further increase with higher solid waste generation, better segregation capabilities, and higher diversion of SAF production. Using agriculture residue for SAF production also addresses the problem of stubble burning and enables farmers to generate additional income from waste.
According to initial industry estimates, by 2040, India will have the opportunity to produce 8-10 million tonnes of SAF against the potential demand of around 4.5 million. By then, the SAF blending rate is seen at 15 percent. An estimated 230 million tonnes of surplus agricultural residue are unused and could also be used for the 2G ethanol plants being set up by the oil marketing companies.
SAF production in 2024 was around 1 million tonnes. According to IATA, SAF demand is expected to hit 50 million tonnes by 2050. With the right regulation, technologies, demand from consumers, and feedstock for production, could help create a new industry.
Vision 2040 for India’s aviation sector has estimated passenger traffic at 1.1 billion and freight traffic at 1.7 million tonnes. India currently accounts for a little over two percent of the global ATF demand. Given India’s abundant feedstock for SAF and high exposure to exports for ATF (50 percent of ATF produced being exported), India is well-positioned to capitalise on the rising global demand for SAF.
2G Ethanol Plants For Biofuel Production
2G ethanol plant produces ethanol using non-food biomass like agriculture waste, such as rice straw or sugarcane bagasse in place of food crops like corn or sugarcane. 2G ethanol plants are designed to utilise technologies like pre-treatment, hydrolysis and co-fermentation to convert biomass into ethanol, biogas and even bio-CNG. The production process involves pre-treatment to break down biomass, hydrolysis to convert complex carbohydrates into simpler sugars and fermentation to produce ethanol.
Benefits Of 2G Plants
2G ethanol production reduces the dependence on food stocks for biofuel production. It utilises wastes from agriculture resources and contribute to a sustainable and circular economy principles. Government of India has been promoting 2G ethanol through the schemes like the Pradhan Mantri Jivan Yojana offering financial support and incentives to the prospective industry.
Conclusion
Using biofuel like bioethanol and biodiesel as renewable energy can help reducing green house gas emissions and achieve climate targets by 2050, However, the challenges to create infrastructure for harnessing renewable energy sources need to be addressed by the policy makers. Biofuels can reduce dependence on fossil fuels particularly in transport sector.
The writer is Professor and Head Civil-Environmental Engineering Department, Amity University Gurugram