Biofuels

Science & Technology
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Version 1Updated 10 Mar 2026

The National Policy on Biofuels 2018, as amended in 2022, serves as the foundational policy document for India's biofuel sector. It states: 'The Policy aims to increase the use of biofuels in the energy and transportation sector of the country. It also aims to reduce import dependency, generate employment, and provide a remunerative income to farmers. The Policy categorizes biofuels as 'Basic Biof…

Quick Summary

Biofuels are renewable energy sources derived from organic matter (biomass), serving as a sustainable alternative to fossil fuels. India's biofuel strategy is primarily guided by the National Policy on Biofuels 2018 (amended 2022), aiming to enhance energy security, mitigate climate change, and boost rural economies.

Key types include First Generation (1G) from food crops like sugarcane (ethanol) and edible/non-edible oils (biodiesel), Second Generation (2G) from non-food lignocellulosic biomass (e.g., rice straw for ethanol), and Third Generation (3G) from algae.

Biogas, purified into Compressed Biogas (CBG), is produced from organic waste via anaerobic digestion. India's flagship initiatives include the Ethanol Blending Programme (EBP), targeting E20 (20% ethanol blending in petrol) by 2025, and the SATAT (Sustainable Alternative Towards Affordable Transportation) scheme for promoting CBG production.

While offering benefits like reduced greenhouse gas emissions and waste utilization, biofuels face challenges such as the 'food vs. fuel' debate, land-use change concerns, water footprint, and the high cost of advanced technologies.

From a UPSC perspective, understanding the policy framework, technological advancements across generations, environmental trade-offs, and socio-economic impacts is crucial.

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  • National Policy on Biofuels 2018 (amended 2022) is key.
  • E20 target for ethanol blending by 2025.
  • SATAT initiative promotes Compressed Biogas (CBG).
  • 1G Biofuels: From food crops (sugarcane, corn); Fermentation, Transesterification.
  • 2G Biofuels: From lignocellulosic biomass (rice straw, bagasse); Enzymatic hydrolysis, Gasification.
  • 3G Biofuels: From algae; Hydrothermal liquefaction.
  • Key feedstocks: Sugarcane, molasses, jatropha, karanja, WCO, lignocellulosic biomass, algae.
  • 'Food vs. Fuel' debate primarily for 1G biofuels.
  • India uses damaged food grains/surplus rice for ethanol to mitigate 'food vs. fuel'.
  • Environmental benefits: GHG reduction, waste management.
  • Challenges: High tech costs for 2G/3G, supply chain, water footprint.
  • SDGs linked: 7 (Clean Energy), 13 (Climate Action), 12 (Responsible Consumption).
  • Global Biofuel Alliance (GBA) launched by India.
  • MoPNG and OMCs are key implementing agencies.
  • Viability Gap Funding (VGF) for 2G plants.

Biofuels: Generations Evolve, Policy Supports, Challenges Remain.

  • Generations: 1G (Food), 2G (Waste), 3G (Algae)
  • Evolve: Technologies like Fermentation, Transesterification, Anaerobic Digestion
  • Policy: National Policy on Biofuels 2018, EBP (E20 by 2025), SATAT
  • Supports: Energy Security, Climate Action, Rural Economy
  • Challenges: Food vs. Fuel, Land Use, Water Footprint, High Tech Cost
  • Remain: Need for R&D, Infrastructure, Sustainable Feedstock
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