India’s energy security starts at home
The latest conflict in the Middle East has underscored a persistent reality: energy security remains a vital concern that cannot be taken for granted. For India, which imports 87 per cent of its crude oil, much of it from this region: The lesson is particularly significant. When you add to that 60 per cent of its LPG imports, every kilogram of potash used for agriculture, and nearly half the petrochemicals found in everyday products like detergents, plastics, and solvents, the extent of India’s exposure becomes unmistakably clear.
This dependence on far-flung, often volatile supply routes is a strategic vulnerability that no amount of diplomatic maneuvering can fully safeguard. India has already demonstrated its capacity to reduce import reliance, as seen in the Ethanol Blended Petrol Programme.
Remarkably, the country achieved 20 per cent blending five years ahead of schedule, saving Rs 1,44,000 crores in foreign exchange, paying Rs 1,25,000 crores directly to farmers, and generating about 165,000 jobs. This success was powered by strong political will and robust policy measures that encouraged private sector investment in new ethanol production facilities.
Collaboration among engineering companies, biosolution technology providers, academia, and regulatory bodies fostered an ecosystem that built trust and enabled transformative change. This model, proven to work, is ready to be scaled up. Fossil dependence is often seen as a fuel issue, but it is much more pervasive.
Fertilizers, chemical intermediates, industrial raw materials, and a wide array of products that drive India’s economy still hinge on fossil-based imports.
However, alternatives can be produced domestically and sustainably using biosolutions. Currently, India boasts a surplus bio-ethanol capacity of 7–8 billion liters, which can be harnessed for innovative applications.
Enzymes and microorganisms can transform local biomass, crops, and agricultural residues into fuels, chemicals, and materials that are viable substitutes for fossil-based products.
With the right technologies and policies, and with current excess production capacity, ethanol has the potential for up to 8 per cent commercial LPG substitution. Sustainable aviation fuels, biodiesel, and biochemicals are transitioning from aspiration to reality, with infrastructure already advancing.
Beyond fuel, biofertilisers offer promising ways to reduce reliance on fossil and synthetic agricultural inputs. For example, our assessments show that in rice cultivation, agricultural biosolutions can cut phosphorus (DAP) usage by 25 per cent and urea consumption by 30 per cent.
A policy that incentivizes biologicals as much as chemical fertilizers would encourage widespread adoption among farmers. Every rupee invested in home-grown biosolutions stays in India, multiplying domestic income, creating rural jobs, and strengthening economic independence and security. While the technological groundwork, proof of concepts, and raw materials are in place, regulatory processes need to evolve rapidly to keep pace with these innovations.
Clearer guidelines and expedited approvals will unlock further investment in this exciting space. India has shown it can set ambitious goals and surpass them.
Now, the opportunity is to extend that determination across the broader fossil value chain—not only for fuel, but also for what goes into kitchens, fields, and factories. India is well-positioned to lead the biosolutions revolution.
Technology is ready and with ongoing innovation, today’s challenges can be turned into tomorrow’s opportunities. The crisis in the Middle East will not be the last of its kind, but by building resilience at home, India can secure its future regardless of external disruptions. Biosolutions are central to this vision.
The author is a renowned energy expert and seasoned global business leader with over three decades of experience spanning Asia-Pacific, Regional President – Middle East, India, and Africa, Novonesis.
