Biofuel Policy
Food vs fuel: Surge in ethanol blending and its impacts
Why in the News?
India now aims to increase ethanol blending in petrol to 30% to reduce the use of fossil fuels, after reaching its earlier target of 20% for 2025 ahead of time.
What factors have contributed to the decline in sugarcane production in India since 2022?
- Red-Rot Disease: A major fungal infection that affects the stalk and reduces crop health and yield. Eg. In Uttar Pradesh and Maharashtra, outbreaks of red-rot significantly reduced sugarcane productivity post-2022.
- Deficient Rainfall: Inadequate monsoon rains have led to water stress in sugarcane-growing regions. Eg. In Maharashtra and Karnataka, below-normal rainfall in 2023 led to poor crop growth and lower yields.
- Flowering Issues: Disruption in the natural flowering cycle affects cane maturity and sugar content. Eg. In southern India, unseasonal weather affected flowering patterns, resulting in underdeveloped canes.
- Soil Depletion (Soil Fatigue): Continuous sugarcane monocropping depletes soil nutrients, lowering productivity. Eg. In western Uttar Pradesh, repeated sugarcane cultivation without crop rotation has led to reduced soil fertility.
- Crop Diversion: Farmers are shifting to other crops due to uncertain returns and rising input costs. Eg. In Tamil Nadu and Andhra Pradesh, farmers moved to pulses and cotton, reducing the area under sugarcane.
Why has the Indian government approved a hike in the Fair Remunerative Price for sugarcane?
- Support for Farmer Income: The hike in FRP is intended to ensure that farmers receive a fair price for their produce, thus supporting their income. Eg: The increased FRP of ₹355 per quintal (up from ₹340) ensures that farmers are adequately compensated, especially as input costs have risen. This makes sugarcane cultivation more attractive to farmers.
- Addressing Rising Input Costs: The costs of farming inputs, such as fertilizers, labor, and irrigation, have increased, and the FRP hike helps mitigate these expenses for farmers.
Eg: With the rise in fertilizer prices, the government’s decision to raise the FRP ensures that farmers can continue cultivating sugarcane without facing financial distress due to high input costs. - Incentivizing Sugarcane Production: A higher FRP encourages farmers to cultivate more sugarcane, addressing concerns over declining sugarcane production in India.
Eg: In regions like Maharashtra and Uttar Pradesh, where production has been affected due to reduced farmer interest, the FRP increase motivates farmers to maintain or increase their sugarcane acreage. - Ensuring Steady Sugar Supply: Maintaining sugarcane production through higher FRP ensures a stable sugar supply for the domestic market. Eg: With India being one of the world’s largest sugar producers, ensuring adequate sugarcane production is vital to prevent sugar shortages and price hikes, as seen in previous years.
- Timely Payments to Farmers: The FRP hike ensures that sugar mills can afford to make timely payments to farmers, thus reducing arrears. Eg: In the past, many farmers faced delayed payments from mills. The higher FRP is expected to make it financially feasible for mills to pay farmers on time.
Which alternatives is the government considering to offset the sugarcane shortfall for ethanol?
- B-Heavy Molasses: The government has lifted restrictions on B-heavy molasses for ethanol production, increasing supply without extra sugarcane cultivation. Eg: 750,000 metric tons of B-heavy molasses are now available for ethanol production.
- Cane Juice and Syrup: Sugar mills can now use cane juice and syrup for ethanol, boosting production capacity. Eg: Policy change allows sugar mills to divert more resources into ethanol production from sugarcane juice.
- Grain-Based Ethanol: The government is encouraging the use of grains like maize and rice for ethanol, diversifying feedstocks. Eg: India has turned to maize for ethanol production, though it has led to increased corn imports.
- Food vs. Fuel Balance: The government has adjusted policies to prioritize sugar production when needed. Eg: Restrictions were imposed on ethanol production in December 2023 to ensure sufficient sugar supply.
- Molasses-Based Ethanol Procurement Price: The government has increased the procurement price for molasses-based ethanol to incentivize production. Eg: The procurement price was raised by 3% to ₹58 per liter to boost ethanol supply.
Way forward:
- Promote Crop Diversification and Sustainable Practices: Encourage farmers to adopt crop rotation and diversified farming practices, alongside promoting resilient sugarcane varieties, to reduce dependency on sugarcane monocropping and mitigate soil depletion.
- Strengthen Ethanol Supply Chain and Support Alternative Feedstocks: Enhance infrastructure for processing alternative feedstocks like maize and rice for ethanol production, while incentivizing the use of B-heavy molasses and cane juice to ensure a steady supply of ethanol without further straining sugarcane resources.
Mains PYQ:
[UPSC 2024] What are the causes of persistent high food inflation in India? Comment on the effectiveness of the monetary policy of the RBI to control this type of inflation.
Linkage: The rise in sugar price, partly due to diversion for ethanol blending, is “pinching the pockets of consumers”. This question directly addresses the causes of high food inflation, which is a significant impact of the “food vs fuel” dynamic where increased demand for crops for fuel can drive up food prices.
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Biofuel Policy
How an Ethanol Factory has turned this Vijayawada village from idyllic charm to Industrial nightmare
Note4Students
From UPSC perspective, the following things are important :
Prelims level: Etanol factories in India
Mains level: Negative impact of ethanol factory on the region without proper regulation
Why in the news?
- Recently Gandepalli village in news because of devastating impact of an ethanol factory (Sentini BioProducts Pvt. Ltd) since 2008
- Residents are struggling with foul air and water, poisoned crop fields, and depleting water tables
Negative impact on village
Sentini BioProducts Pvt. Ltd. is a company involved in the production of ethanol and animal feed supplements. It specializes in manufacturing extra-neutral alcohol (ENA), a type of ethanol.
- Under the red category: Ethanol production plants and distilleries, including Sentini BioProducts, fall under the ‘red category’ as per Central government norms, indicating high pollution levels (score of 60 or more)
- Wastewater Discharge: The factory is mandated to have a Zero Liquid Discharge system in place. However, residents report untreated wastewater discharge into the nearby irrigation canal.
- Air Pollution: Residents complain of a choking stench and polluted air emanating from the factory, indicating potential air pollution issues.
- Crop Damage: Extensive crop damage is reported by villagers, indicating potential contamination of agricultural lands by pollutants from the factory. Over more than 10 years, farmers in the area have experienced a decline in crop quality and yield, particularly in paddy cultivation.
- Negative Impact on quality of Life: Pollution from the factory negatively impacts the quality of life for local residents, posing health risks and environmental hazards.
Regulatory Failures in this situation:
- Unable to address the problem: Despite multiple complaints from villagers and show-cause notices issued to the factory since 2013, regulatory authorities, including the Andhra Pradesh Pollution Control Board (APPCB), have been ineffective in addressing the pollution issues.
- Regulatory lapse revealed by Lokayukta: The Lokayukta inquiry revealed lapses by regulatory bodies, including the APPCB and the Joint Director of Agriculture of Krishna district, in investigating and addressing the environmental damage caused by the factory’s operations.
- Delay in action: The delay in taking appropriate action and the failure to enforce environmental regulations have allowed the factory to continue its polluting activities unabated.
Suggestive measures to address the situation:
- Need Comprehensive Investigation: Conduct a thorough investigation into the environmental impact of Sentini BioProducts Pvt. Ltd. on Gandepalli village. This investigation should include assessments of air and water quality, soil contamination, and the extent of crop damage caused by the factory’s operations.
- Enforcement of Environmental Standards: Ensure strict compliance with environmental standards and regulations by the factory.
- Community Engagement: Foster meaningful dialogue and engagement between the factory management, regulatory authorities, and the local community. Provide opportunities for residents to voice their concerns, share their experiences, and participate in decision-making processes related to environmental management and pollution control measures.
- Remediation and Compensation: Implement measures to remediate the environmental damage caused by the factory, including restoration of polluted water bodies, soil remediation, and compensation for affected farmers.
Conclusion
The devastating impact of Sentini BioProducts Pvt. Ltd. on Gandepalli village, including pollution, crop damage, and regulatory failures, necessitates urgent comprehensive investigation, strict enforcement of environmental standards, community engagement, and remediation efforts to restore environmental health and livelihoods.
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Biofuel Policy
Airbus and CSIR-IIP collaborate to advance Sustainable Aviation Fuel in India
Note4Students
From UPSC perspective, the following things are important :
Prelims level: Sustainable Aviation Fuel
Mains level: Read the attached story
Introduction
- Airbus, a prominent aircraft manufacturer, has joined forces with the CSIR-Indian Institute of Petroleum (CSIR-IIP) to pioneer innovative technologies and accelerate the development and qualification of indigenous sustainable aviation fuel (SAF) within India.
Advancing Sustainable Aviation Fuel
- Decarbonization Ambitions: The collaboration targets the reduction of carbon emissions in the Indian aerospace sector, thereby contributing to environmental sustainability.
- HEFA Technology Pathway: The partnership will employ cutting-edge HEFA (Hydroprocessed Esters and Fatty Acids) technology, a promising pathway for SAF production, emphasizing sustainability and environmental impact.
- Key Objectives: Airbus and CSIR-IIP will work collaboratively to conduct technical assessments, secure approvals, access markets, and attain sustainability accreditations, all essential elements for SAF production.
SAF as a Decarbonization Catalyst
- Transformative Impact: SAF, including a variant developed by CSIR-IIP, is viewed as the most impactful measure for decarbonizing the aviation industry.
- Challenges to Address: Overcoming challenges such as increased SAF production and closing the cost gap between SAF and traditional jet fuel is crucial to expanding SAF adoption.
Airbus’ Commitment to SAF
- Partial Adoption: Currently, all Airbus aircraft are certified to operate using a 50% SAF blend.
- Future Goal: Airbus aims to achieve 100% SAF compatibility for its aircraft by 2030, emphasizing the significance of this collaboration with CSIR-IIP.
Collaborative Efforts
- Research Focus: CSIR-IIP will conduct in-depth studies on the fuel’s properties within the new pathway and assess its implications on aircraft systems and the environment.
- Expert Guidance: Airbus will provide valuable insights into the fuel evaluation process, share knowledge on fuel testing, and contribute aircraft systems expertise.
India’s Potential as a Global SAF Hub
- Abundant Feedstock: India possesses the potential to emerge as a prominent SAF production hub, capitalizing on the availability of feedstocks, local talent, and technological proficiency.
- Scaling Up Solutions: The collaboration underscores India’s capacity to scale up sustainable aviation fuel solutions and become a global leader in this vital sector.
Conclusion
- The collaboration between Airbus and CSIR-IIP signifies a significant stride towards sustainable aviation fuel development in India.
- By harnessing local resources, technological expertise, and a commitment to decarbonization, this partnership aims to elevate India’s aerospace industry while contributing to global efforts to combat climate change.
- India’s potential as a SAF production hub holds immense promise for a greener and more sustainable future in aviation.
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Biofuel Policy
India’s ethanol conundrum
Note4Students
From UPSC perspective, the following things are important :
Prelims level: NAFED and NCCF
Mains level: alternatives to ethanol dependence
Central idea
The article discusses India’s challenges in achieving its 20% ethanol blending target by 2025, focusing on the transition to grains-based ethanol and potential impacts on food prices. It highlights the trade-offs between renewable energy goals and the risk of uncontrollable food inflation, urging a reconsideration of targets and exploration of alternative energy sources.
Key Highlights:
- Renewable Energy Pledge: Over 100 countries commit to tripling global renewable energy capacity by 2030 at COP28 in Dubai.
- Ethanol Blending in India: Ethanol blended petrol (EBP) in India rose from 1.6% (2013-14) to 11.8% (2022-23), aiming for a 20% target by 2025.
- Challenges with Ethanol Target: Low sugar stocks and potential sugarcane production shortfall pose challenges to India’s 20% ethanol blending target by 2025.
- Shift to Grains-based Ethanol: Government explores a transition to grains-based ethanol, emphasizing maize procurement for ethanol distilleries.
- National Agricultural Cooperative Involvement: Authorization of NAFED and NCCF to procure maize signals a focus on an organized maize-feed supply chain for ethanol.
Key Challenges:
- Low Sugar Stocks: Current low sugar stocks impact ethanol production from sugarcane, necessitating a shift to alternative feedstocks like maize.
- Sugarcane Shortfall: Impending shortfall in sugarcane production poses a challenge to meeting ethanol blending targets.
- Food-Fuel Trade-off: Transition to grains-based ethanol raises concerns about diverting grains from food production, potentially impacting food prices.
- Ethanol Price Dynamics: Link between ethanol, crude oil, and corn prices can create market volatility, affecting global food prices.
Key Terms:
- Ethanol Blended Petrol (EBP): A fuel blend containing a certain percentage of ethanol mixed with petrol, aimed at reducing fossil fuel usage.
- National Agricultural Cooperative Marketing Federation of India (NAFED): Cooperative organization involved in agricultural marketing and procurement.
- Food-Fuel Conflict: The trade-off between using agricultural products for food or fuel production, influencing global food prices.
- Differential Pricing: Varied pricing mechanisms to incentivize specific inputs or outputs in the production process.
Key Phrases:
- Tightrope Walk: India faces a tightrope walk in achieving its ethanol blending target amidst challenges in feedstock availability.
- Food Inflation Spectre: The transition to grains-based ethanol raises concerns about potential uncontrollable food inflation.
Key Quotes:
- “The recent authorization of NAFED and NCCF to procure maize for supplying ethanol distilleries indicates emphasis on this transition…”
- “By adopting a transition to grains-based ethanol to fast-track the 2025 target achievement, is the government hurtling towards a looming spectre of uncontrollable food inflation?”
Key Statements:
- The government considers a major transition towards grains-based ethanol to meet the 20% blending target by 2025.
- The December 7, 2023, order bans the use of cane juice for ethanol production, addressing challenges related to reduced sugar stocks.
Critical Analysis:
- The article critically evaluates the challenges and trade-offs associated with India’s ethanol blending targets, considering the impact on food prices and market dynamics.
- It questions the potential risks of transitioning to grains-based ethanol, emphasizing the need for a balanced approach to avoid food inflation.
Way Forward:
- Reconsidering the ethanol blending target and staggering it to mitigate contradictions is suggested.
- Advocates for increased investment in public infrastructure, urban design, and renewable energy sources like solar power as alternatives to ethanol dependence.
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Biofuel Policy
To venture or not to venture: Emerging compressed biogas sector lucrative for enterpreneurs but present dilemmas
Note4Students
From UPSC perspective, the following things are important :
Prelims level: Compressed Biogas (CBG)
Mains level: capacity-building initiatives in the CBG sector
Central idea
Entrepreneurs in India’s Compressed Biogas (CBG) sector face challenges in feedstock disparities, operational complexities, and financial vulnerabilities. The three-day training by the Centre for Science and Environment highlights the sector’s need for robust mechanisms in feedstock pricing, market creation, and sustainable practices.
Key Highlights:
- Budding entrepreneurs in the compressed biogas (CBG) space in India are grappling with the viability of the sector despite government support.
- The CBG industry faces challenges such as feedstock availability, varying prices, and complex plant operations due to multiplicity of feedstock.
- The profitability of CBG production is impacted by fixed or one-off take prices irrespective of feedstock prices, leading to financial vulnerability.
- A fair and robust pricing mechanism for feedstock is crucial for the long-term availability and sustainability of the CBG sector.
- Sustainability involves creating a market for CBG and ensuring the sustainable disposal of the by-product, fermented organic manure (FOM).
Key Challenges:
- Feedstock Availability: Disparities in feedstock availability across regions pose a challenge, leading to the exploration of growing dedicated energy crops.
- Multiplicity of Feedstock: Handling multiple feedstocks adds complexity to plant operations, increasing capital and operating costs.
- Varying Feedstock Prices: The fixed or one-off take price of CBG regardless of feedstock prices makes the business financially volatile.
- Market Creation for FOM: Sustainability requires creating a market for FOM, the by-product, necessitating innovation in market development.
Key Terms and Phrases:
- Compressed Biogas (CBG)
- Feedstock Pricing Mechanism
- Fermented Organic Manure (FOM)
- Market Development Assistance
- Anaerobic Digestion
- Technology Selection
- Multiplicity of Feedstock
- Cluster Approach
- Community-Driven Models
- Voluntary Carbon Market
Key Quotes and Anecdotes:
- “Choice and availability of feedstock is one among many concerns, with entrepreneurs exploring the possibility of growing dedicated energy crops.”
- “Multiplicity of feedstock adds to the complexities in plant operation, resulting in larger investments towards capital and operating costs.”
- “Fair and robust pricing mechanism for feedstock is needed for the long-term availability and visibility of the feedstock supply chain.”
- “Sustainability involves creating a market for CBG and equally important sustainable disposal of the by-product, fermented organic manure (FOM).”
Key Statements:
- The CBG sector struggles with challenges such as feedstock availability, varying prices, and complex plant operations due to multiplicity of feedstock.
- The industry needs to shift from being cost-sensitive to cost-aware for long-term viability and operational sustainability.
- A proactive approach by industry stakeholders is crucial to developing a robust mechanism for feedstock pricing, off-take, and market creation for FOM.
Key Examples and References:
- The state of Uttar Pradesh is implementing a catchment area approach for CBG units, defining specific areas for supply chain coordination.
Key Facts and Data:
- The CBG sector requires a collective approach to address challenges and create a healthy competition among stakeholders.
- Entrepreneurs in the CBG sector need to exercise caution in technology and feedstock selection to ensure sustainability.
Critical Analysis:
- The CBG sector’s complexity lies in numerous variables along the value chain, requiring a shift from cost sensitivity to cost awareness for long-term viability. A fair feedstock pricing mechanism and innovative market development for by-products are essential for sustainability. Capacity-building initiatives are crucial for entrepreneurs to make informed decisions in this evolving sector.
Way Forward:
- Collaborative Approach: Industry stakeholders should collaborate to develop robust mechanisms for feedstock pricing, off-take, and FOM market creation.
- Cluster Approach: Adopting a cluster approach can provide visibility to feedstock availability, eliminating competing demands from neighboring CBG producers.
- Community-Driven Models: Community engagement and ownership of feedstock suppliers, such as farmer-producer organizations, can enhance sustainability.
- Technological Awareness: Entrepreneurs must prioritize awareness and proper guidance in technology selection to avoid compromising plant performance and product quality.
- Sustainability Focus: The CBG industry needs to focus on sustainable disposal and application of by-products to prevent environmental challenges and ensure further expansion.
The training program successfully achieved its objective of providing necessary considerations to entrepreneurs, indicating a need for more capacity-building initiatives in the CBG sector.
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Biofuel Policy
Ethanol – a saviour that gives savings
Note4Students
From UPSC perspective, the following things are important :
Prelims level: Global Biofuel Alliance
Mains level: India’s Ethanol Blending Progress, Rising mobility needs and role of biofuels, challenges and way forward
What’s the news?
- India grapples with soaring international oil prices, hitting nearly $100 per barrel, amid its record high import dependence on crude oil and products at 87.3% in FY2023.
Central idea
- As the third-largest consumer of crude and related products globally, India faces a critical challenge in securing its energy future. However, the recently formed Global Biofuel Alliance under India’s G20 presidency presents a promising opportunity to harness clean bioenergy and enhance energy security while optimizing public spending.
India’s Ethanol Blending Program
- In 2003, India initiated its ethanol blending program, but progress remained sluggish for over a decade.
- In 2022, after sustained policy efforts, the program achieved a significant milestone by achieving a 10% ethanol blending rate in petrol.
- The government now aims to accelerate progress, targeting a 20% (E20) blending rate by FY25–26, advancing the original timeline by five years.
- Ethanol producers supplied approximately 430 crore litres of ethanol in 2022, with demand projected to soar to nearly 1,100 crore litres by 2025.
- Achieving this target hinges on substantial investments and ensuring an adequate supply of feedstock for domestic ethanol production.
Mobility needs in India
- Two-Wheelers Dominance: Nearly 60% of India’s petrol demand is attributed to two-wheelers. These vehicles are essential for meeting the mobility requirements of people across various economic strata, from urban commuters to rural residents.
- Four-Wheelers’ Growing Demand: While two-wheelers dominate, the demand for four-wheelers is steadily increasing. Approximately 55% of respondents in a 2021 study indicated their desire and need to own a four-wheeler. A NITI Aayog report also predicts a significant growth in petrol demand from four-wheelers by 2030.
The Role of Biofuels, Specifically Ethanol
- Reducing Petrol Consumption: One of the primary roles of biofuels, such as ethanol, is to reduce the overall consumption of petrol (gasoline). By blending ethanol with petrol, India can lower its dependence on imported crude oil, mitigate greenhouse gas emissions, and enhance energy security.
- Blending to Reduce Emissions: Ethanol blending in petrol is an effective strategy to reduce carbon emissions and air pollution. This is crucial for addressing India’s air quality challenges and its commitment to combating climate change.
- Promoting Bio-Energy: Biofuels, including ethanol, can be produced from agricultural crops and biomass sources. This provides an additional income stream for the farming community, contributing to rural development and income generation.
- Supporting Sustainable Agriculture: The cultivation of crops for biofuel production can be aligned with sustainable agricultural practices, including crop diversification and efficient resource use.
Challenges with Electric Vehicles (EVs)
- Limited Availability and Affordability of EVs: While EV adoption is increasing, there is still limited variety in EV models compared to traditional vehicles. This limitation can impact consumer choice and adoption. Additionally, the upfront costs of EVs are often higher, which can deter potential buyers.
- Charging Infrastructure: The need for expanding charging infrastructure is emphasized, highlighting that the development of charging stations is essential for the widespread adoption of EVs. The lack of charging stations can create range anxiety among EV users.
- Range Anxiety: EVs generally have a limited range compared to traditional vehicles, and addressing this concern is crucial to alleviating consumer fears about long-distance travel.
- Charging Time: While not explicitly mentioned, the article indirectly alludes to the longer charging times for EVs compared to refueling traditional vehicles. Fast-charging stations are discussed as a solution to reduce charging times.
- Battery Technology and Supply Chain: The article briefly touches upon battery cost and supply chain challenges, noting that the cost of EV batteries remains relatively high and disruptions in the global supply chain can impact EV manufacturing.
Way forward
- Expediting Ethanol Blending Program: Accelerate efforts to achieve the ambitious target of 20% ethanol blending (E20) by FY25–26. Prioritize investments in ethanol production facilities to meet the rising demand for ethanol.
- Infrastructure Development: Focus on rapidly developing the necessary infrastructure for the efficient distribution and sale of ethanol-blended petrol, including retrofitting existing petrol pumps and establishing new ones.
- Research and Development for 2G Technologies: Allocate resources to research and develop second-generation (2G) biofuel technologies that can utilize non-food crop feedstocks, diversifying biofuel sources.
- Balanced Approach: Recognize the complementary nature of biofuels, electric vehicles (EVs), and other sustainable mobility solutions. Promote EV adoption, particularly in public transit and urban settings, alongside biofuel promotion.
- Supportive Policy Framework: Ensure the presence of consistent and supportive policy frameworks that incentivize biofuel production, distribution, and usage. Explore pricing mechanisms to encourage responsible private vehicle usage in urban areas.
What else?
- First-generation Production: Much of India’s supply of ethanol for the blending program comes from first-generation production. This primarily involves using underlying sugars in food crops, with the majority sourced from sugarcane (84 percent) and grain (16 percent).
- Food-Energy-Water Nexus: Considering the food-energy-water nexus in ethanol production is important. Food crops used for ethanol require fertilizers, water, and energy subsidies for their production.
- Climate Change Considerations:
- While ethanol production provides a new income stream for the farming community through assured procurement, it’s crucial to recognize that climate change can lead to significant variations in rainfall and yields. These variations can make the ethanol supply vulnerable to supply shocks.
- Therefore, India needs a robust assessment of these trade-offs and a clear research and development plan for second-generation (2G) ethanol technologies before scaling up ethanol production.
Conclusion
- In an era when the automobile industry grapples with the transition to EVs, India’s strategic and actionable plan for transforming its mobility landscape not only promises to reduce the import bill but also provides the nation with the time required to transition a cornerstone industry of its economy. The Global Biofuel Alliance, alongside well-considered policy initiatives, will be pivotal in steering India toward greater energy security and sustainability.
Must Read:
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Biofuel Policy
Sustainable Biofuels
Note4Students
From UPSC perspective, the following things are important :
Prelims level: Biofuels, Global Biofuels Alliance
Mains level: Biofuels, challenges in India, Sustainable Biofuels, and Global Biofuels Alliance
What’s the news?
- In recent years, the rise of electric vehicles (EVs) has dominated discussions on decarbonizing the transportation sector.
Central idea
- It is increasingly clear that there are no one-size-fits-all solutions in the race to reduce carbon emissions. While EV adoption has grown substantially, it is essential to recognize that effective decarbonization strategies require a balanced approach.
What are biofuels?
- Biofuels are a type of renewable energy derived from organic materials, such as plants, crops, and agricultural waste.
- They are considered an alternative to traditional fossil fuels, such as coal, oil, and natural gas, because they are produced from renewable biomass sources.
Types of biofuels
- Ethanol: It is a biofuel produced by fermenting and distilling sugars or starches found in crops like corn, sugarcane, and wheat. It is commonly used as a blending component in gasoline and can be used as a fuel for vehicles in its pure form, known as E85 (85% ethanol and 15% gasoline).
- Biodiesel: It is a renewable fuel made from vegetable oils, animal fats, or recycled cooking oils. It is typically used as a substitute for diesel fuel and can be blended with petroleum diesel or used in its pure form. Biodiesel has lower emissions of pollutants compared to petroleum diesel and can be used in conventional diesel engines without any modifications.
- Biogas: It is produced through the anaerobic digestion of organic waste materials such as agricultural residues, food waste, and animal manure. It primarily consists of methane and carbon dioxide. Biogas can be used for heating, electricity generation, or as a vehicle fuel after purification.
What are sustainable biofuels?
- Sustainable biofuels are those produced from crop residues and other waste materials. These biofuels have a lower environmental impact, including reduced water and greenhouse gas footprints, compared to traditional 1G ethanol derived from food crops.
Challenges related to biofuels in India
- 1G Ethanol Dominance: In India, biofuel production has largely revolved around first-generation (1G) ethanol, primarily sourced from food crops such as sugar cane and foodgrains. This dominance of 1G ethanol poses several challenges, including competition with food production, groundwater depletion due to sugar cane cultivation, and limited potential for scalability.
- Groundwater Depletion: The cultivation of sugar cane, a primary source of 1G ethanol, has been associated with significant groundwater depletion. This poses a serious environmental concern and has long-term sustainability implications, especially in regions with water scarcity.
- Food Security Concerns: Utilizing food crops for ethanol production, particularly in a country like India, raises concerns about food security. Diverting surplus food production toward energy production can lead to potential shortages and affect food prices.
- Yield Stagnation and Global Warming: India’s crop yields have shown signs of stagnation, and the effects of global warming are expected to further reduce crop yields. This means that relying on surplus crop production to meet biofuel blending targets is an unsustainable strategy.
- Greenhouse Gas (GHG) Emissions: Agriculture is one of the hardest sectors to abate in terms of direct GHG emissions. Increasing GHG emissions from the agricultural sector to produce biofuels for the transport sector can create a counterproductive loop, as it may lead to an overall increase in emissions.
- Supply Chain Challenges for 2G Ethanol: Second-generation (2G) ethanol, which is made from crop wastes and residues, faces challenges related to feedstock supply chains and scaling up production. This can hinder the expansion of 2G ethanol as a sustainable alternative.
- Economies of Scale vs. Biomass Collection: Balancing economies of scale with the energy needs and costs associated with collecting and transporting biomass over large distances is a major challenge. This is crucial for efficient biofuel production, especially in the case of decentralized 2G ethanol production units.
Promoting Sustainable Biofuels in India
- Global Biofuels Alliance: The formation of the Global Biofuels Alliance at the G-20 Summit in New Delhi is seen as a significant step in promoting sustainable biofuels. This alliance is expected to strengthen the development of sustainable biofuels and promote ethanol uptake. It reflects India’s commitment to global cooperation in addressing climate change.
- Diversification of Feedstock: Sustainable biofuels often rely on diversifying feedstock sources beyond food crops. 2G ethanol, which is made from crop wastes and residues, is considered a more sustainable option compared to 1G ethanol. India should focus on developing 2G ethanol production capabilities.
- Prioritizing Sectors: The Energy Transitions Commission’s recommendation to prioritize biomass use in sectors with limited low-carbon alternatives is highlighted. Long-haul aviation and road freight segments, where electrification may take longer to achieve, are mentioned as sectors that could benefit from sustainable biofuels.
- 2030 Sustainability Targets: To achieve global net-zero emissions by 2050, sustainable biofuel production needs to triple by 2030. This underscores the urgency of developing and scaling up sustainable biofuel technologies and production methods.
- Decentralized Production: For sustainable 2G ethanol production, a decentralized approach might be more effective. This means that crop residues do not have to be transported over long distances to central manufacturing plants.
- Innovation and Technology Development: The Global Biofuels Alliance is expected to drive innovation and technology development by establishing an efficient biomass supply chain and smaller-scale decentralised biofuel production units. This is seen as a way to address the challenges associated with sustainable biofuel production.
Importance of distinguishing between sustainable and unsustainable biofuels
- Resource Management: Using unsustainable biofuels, particularly those sourced from food crops like sugar cane and grains, can lead to resource depletion. This includes issues such as groundwater depletion and competition for arable land. Differentiating between the two categories helps with responsible resource management.
- Food Security: Sustainable biofuels do not rely on food crops for production, reducing the risk of food security issues. When food crops are diverted for energy production, it can lead to food shortages and increased prices, which can be detrimental to vulnerable populations.
- Climate Commitments: Distinguishing between sustainable and unsustainable biofuels aligns with global climate commitments. Many international agreements and initiatives emphasize the importance of sustainable bioenergy as a means to reduce carbon emissions and combat climate change effectively.
- Efficiency and Cost: Sustainable biofuels often require fewer resources and have lower production costs compared to unsustainable options. This can lead to increased efficiency and long-term cost savings in biofuel production.
- Public Awareness: Making a clear distinction helps inform the public and policymakers. It enables them to make informed choices, support environmentally responsible practices, and direct efforts towards sustainable biofuel solutions.
- Innovation and Development: By identifying sustainable biofuels, it encourages innovation and technology development in the production of eco-friendly fuels. This, in turn, promotes the growth of a sustainable biofuel industry.
- Complexity of Sustainability: Achieving true sustainability in biofuels is complex. Therefore, distinguishing between sustainable and unsustainable options is a crucial step to ensuring that biofuel strategies align with broader environmental and societal goals.
Conclusion
- While electric vehicles have their place in the decarbonization journey, biofuels offer a viable and immediate option to reduce carbon emissions in sectors where electrification is more challenging. India’s commitment to sustainable biofuels through the Global Biofuels Alliance demonstrates a forward-looking approach to addressing the intricate challenges of decarbonization.
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Biofuel Policy
LPG consumption in Indian households saw an absolute reduction in 2023
Note4Students
From UPSC perspective, the following things are important :
Prelims level: India’s clean-cooking strategy and government schemes
Mains level: India’s clean-cooking strategy, Growth of LPG sector, challenges and alternatives
What’s the news?
- For the first time, LPG consumption in Indian households saw an absolute reduction in 2023 (minus 0.5% versus FY22) after years of steady growth.
Central idea
- Over the past 15 years, the Government of India has endeavored to replicate the urban success of LPG adoption in rural and poorer households. The Grameen Vitrak Yojana and Pradhan Mantri Ujjwala Yojana (PMUY) have significantly expanded the rural distributor base from 18% to 60%. However, the recent decline in LPG consumption raised questions about its sustainability and highlighted the need for a transition.
Significant growth in the LPG sector
- Share Increase: The share of Indian households using LPG as their primary cooking fuel rose from 33% in 2011 to 71% in 2020, according to the India Residential Energy Consumption Survey (IRES) conducted by the Council on Energy, Environment, and Water (CEEW).
- Pradhan Mantri Ujjwala Yojana (PMUY): The successful implementation of PMUY, launched in May 2016, played a pivotal role in promoting LPG adoption. Over 8 crore (80 million) free LPG connections were provided to women from Below Poverty Line (BPL) households by March 2021.
- Reduction of Health and Environmental Hazards: The increased adoption of LPG has led to a reduction in health hazards caused by traditional cooking fuels like firewood, crop residues, and dung cakes. Indoor air pollution, particularly affecting women who spent long hours cooking in smoky kitchens, has decreased.
- Government Initiatives: Government policies and initiatives aimed at promoting clean cooking solutions have contributed to the growing awareness among Indian households about the benefits of LPG as a clean fuel for cooking
Challenges faced by the LPG sector
- Financial Barriers: The withdrawal of LPG subsidies for all consumers during the COVID-19 pandemic in 2020 created financial barriers for many households, affecting their ability to afford LPG refills.
- Underutilization of Subsidies: Despite providing three free cylinders to all PMUY consumers in FY21 as part of the Pradhan Mantri Garib Kalyan Yojana, only 14.1 crore out of the possible 24 crore free cylinders were consumed, indicating challenges in reaching the intended beneficiaries and ensuring full utilization of the provided benefits.
- Distribution and Logistics: Despite significant efforts, home delivery and distribution channel issues persisted, particularly affecting non-PMUY consumers, leading to slow refill rates and hindering the seamless supply of LPG.
- Price Volatility: Indian households have experienced a near-doubling in LPG prices since May 2020 in nominal terms due to volatile international prices, especially since the Russian war against Ukraine. This price volatility affects the affordability and accessibility of LPG for consumers.
- Import Dependency: India’s dependence on imported LPG (the refined commodity) has steadily increased to over 64% in FY23, compared to 46% in the pre-PMUY phase. This import dependency exposes the country to international market risks and supply disruptions.
- Budgetary Constraints: Given the domestic budget’s reliance on petroleum taxation and uncertain international prices, it is unlikely that India can return to a regime where a subsidy of approximately INR 20,000 crore (2011–12 prices) was provided each year for LPG consumption over the first two decades of the 21st century.
Steps and a data-driven approach for India’s clean cooking transition
- Promote Electric Cooking: India should actively promote electric cooking, including induction cook-tops, to offset the reliance on flame-based cooking. The IRES conducted by CEEW showed that even at a high tariff of ₹8 per unit of electricity, electric cooking remains cheaper than LPG cooking at current prices.
- Leverage Electricity Access in Rural Areas: With near-universal access to electricity connections in rural areas, specific cooking needs can be shifted to electricity. This approach can effectively reduce the reliance on LPG in rural households.
- Incentivize Transition to Electric Cooking: Policymakers can use a telescopically increasing LPG prices beyond a threshold, such as seven cylinders per average household.
- Support Domestic Manufacturing Ecosystem: Demand from early adopters of electric cooking can spur the domestic manufacturing ecosystem for electric cooking technologies.
- Monetize Avoided Emissions: By transitioning from traditional chulhas to electric cooking, India can avoid climate pollutant release. This can be monetized through the newly launched carbon market, providing financial resources to support the adoption of electric cooking by poorer rural communities.
- Shift the Policy Focus: Policymakers need to move beyond LPG subsidies alone and focus on fostering a bouquet of solutions for India’s clean cooking goals.
Conclusion
- While LPG subsidies have played a crucial role in improving adoption, it is time for India’s clean cooking policy to diversify and embrace a range of clean-cooking technologies. By nurturing a bouquet of clean cooking solutions, India can pave the way for a sustainable and healthier future.
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Biofuel Policy
Ethanol Blending Programme
Note4Students
From UPSC perspective, the following things are important :
Prelims level: Ethanol-blended petrol and its benefits
Mains level: India's ethanol-blended petrol program, advantages and way forward
What’s the news?
- The Prime Minister, Narendra Modi, has recently announced an ambitious plan to achieve 20% ethanol-blended petrol nationwide by 2025.
Central idea
- India’s ethanol production program has witnessed significant strides in the last five years, with both increased quantities supplied to oil marketing companies (OMCs) and a shift towards diverse raw materials, including rice, damaged grains, maize, and millets. Ethanol, a 99.9% pure alcohol blendable with petrol, has seen a remarkable transformation in its sourcing, production, and utilization.
What is Ethanol?
- Ethanol, also known as ethyl alcohol or grain alcohol, is a clear, colorless, and flammable liquid. It is a type of alcohol with the chemical formula C2H5OH.
- Ethanol is one of the most common types of alcohol and is produced through the fermentation of sugars by yeast or other microorganisms.
Applications of Ethanol
- Ethanol is a key component in alcoholic beverages
- Ethanol is now heavily used as a biofuel or an additive to gasoline, creating a blend known as ethanol-blended petrol or gasohol
- Ethanol is used in various industrial processes, including in the production of solvents, cleaning agents, pharmaceuticals, personal care products, and chemicals
- Its ability to kill bacteria and viruses makes it a valuable ingredient in antiseptics and hand sanitizers
- Ethanol is utilized in food processing for various purposes, including as a preservative, flavor enhancer, and food-grade solvent
An overview: Evolution of India’s ethanol production
- Traditional Feedstocks: Until 2017-18, ethanol production in India relied mainly on ‘C-heavy’ molasses, a by-product of sugar production. Sugar mills produced ethanol from molasses with a sugar content of 40-45%, yielding 220–225 liters of ethanol per tonne.
- Policy Changes: In 2018-19, the Indian government introduced a differential pricing policy to incentivize the use of alternative feedstocks for ethanol production. Higher prices were fixed for ethanol produced from B-heavy molasses and sugarcane juice, compensating mills for reduced sugar production.
- Feedstocks Diversification: Apart from molasses and sugarcane juice, ethanol production expanded to include rice, damaged grains, maize, jowar (sorghum), and other millets. Ethanol yields from grains were found to be higher than from molasses.
- Year-Round Production: Leading sugar companies invested in modern distilleries equipped to operate on multiple feedstocks throughout the year. This flexibility allowed distilleries to switch between B-heavy molasses during the crushing season and grains during the off-season, ensuring continuous ethanol production.
- Increase in Ethanol Blending: The government’s policy and the adoption of diverse feedstocks led to a significant boost in ethanol production and blending with petrol. The all-India average blending of ethanol with petrol increased from 1.6% in 2013-14 to 11.75% in 2022-23.
- Environmental Sustainability: Distilleries implemented modern techniques like the multi-effect evaporator (MEE) units to treat liquid effluents (spent wash), reducing pollution.
- Promoting Green Energy: The evolution of ethanol production in India aligns with the country’s goal of reducing reliance on fossil fuels and promoting renewable and green energy sources
Advantages of India’s ethanol production program
- Ethanol production reduces India’s reliance on imported fossil fuels, enhancing the country’s energy security and reducing vulnerability to fluctuating global oil prices.
- Blending ethanol with petrol lowers carbon emissions. This helps combat climate change and improve air quality.
- Ethanol production from various feedstocks supports agricultural diversification and provides additional income sources for farmers, benefiting the rural economy.
- The program utilizes agricultural byproducts and residues to produce ethanol, promoting efficient resource utilization and reducing waste.
- The ethanol production program creates job opportunities in rural areas, particularly near sugar mills and distilleries, contributing to rural economic growth.
- Ethanol production aligns with India’s renewable energy goals, contributing to the country’s commitment to sustainable development.
Byproducts of ethanol production
- Spent Wash:
- During alcohol production, liquid effluent known as spent wash is generated. Spent wash is a byproduct that can pose serious environmental problems if discharged without proper treatment.
- It contains residual sugars and other substances from the fermentation process, making it a high-strength organic wastewater.
- DDGS (Distillers’ Dried Grain with Solubles):
- DDGS is a byproduct of grain-based distilleries.
- After the liquid from the spent wash is separated, the remaining solid material undergoes a drying process, resulting in distillers’ dried grain with solubles (DDGS).
How byproducts of ethanol production can be beneficial?
- Concentrating the spent wash reduces its volume, and using it as a boiler fuel along with bagasse offers a sustainable energy source, minimizing the need for fossil fuels and reducing greenhouse gas emissions.
- The ash resulting from the incineration of the concentrated spent wash contains up to 28% potash. This potash can be used as fertilizer, promoting soil health and supporting agricultural sustainability.
- Byproduct utilization in the form of DDGS as animal feed optimizes resource utilization and minimizes waste.
- The conversion of spent wash and wet cake into useful products reduces waste generation.
- The byproduct utilization exemplifies the principles of a circular economy where waste is minimized, and resources are recycled and reused.
Way forward
- India should continue to diversify its feedstocks for ethanol production, including cane molasses, direct sugarcane juice, rice, damaged grains, maize, jowar, bajra, and other millets.
- States like Uttar Pradesh, a major sugarcane grower, can contribute significantly to ethanol production from cane and molasses, while Bihar, known for maize cultivation, can play a crucial role in utilizing maize for ethanol.
- Emphasize research to optimize the conversion of maize and other grains into ethanol, reducing the process duration and enhancing overall productivity.
- Build new distilleries and upgrade existing ones
- Provide stable and long-term policy support, including differential pricing, tax incentives, and mandates for ethanol blending with petrol, tailored to the specific characteristics of different feedstocks.
- Gradually increase the blending percentage of ethanol with petrol
- Explore opportunities for international collaboration in ethanol production and blending
Conclusion
- The move towards a 20% ethanol-blended petrol by 2025 demonstrates the nation’s commitment to energy independence and a greener future. By leveraging multiple feedstocks and adopting sustainable practices, the ethanol industry can continue to play a vital role in India’s journey towards a cleaner and more self-reliant energy landscape.
Also read:
Global Biofuel Alliance can power India’s energy transition drive, but must have time-bound targets
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Biofuel Policy
India to launch Global Biofuel Alliance (GBA)
Note4Students
From UPSC perspective, the following things are important :
Prelims level: Global Biofuel Alliance (GBA)
Mains level: Not Much
Central Idea
- The upcoming 14th Clean Energy Ministerial and Eighth Mission Innovation (CEM14/MI-8) conference, taking place in Goa from July 19-22, 2023, aims to establish the Global Biofuel Alliance (GBA).
What are Biofuels?
There are several types of biofuels, including:
|
What is Global Biofuel Alliance (GBA)?
- G20 Priority: The GBA is a crucial priority under India’s G20 Presidency.
- Learning from ISA: The GBA draws inspiration from the International Solar Alliance (ISA), jointly initiated by India and France in 2015 to combat climate change through solar energy adoption.
- Objective: This alliance will focus on promoting international collaboration and cooperation to encourage the acceptance and utilization of biofuels.
- Core Members: The GBA, comprising Brazil, the US, and India, aims to impact the global energy architecture and achieve net-zero emissions.
- Membership and Endorsement: Other nations can join the GBA by endorsing the foundation document, and membership is open to non-G20 countries.
Focus Areas of GBA
- Focus areas of the GBA include:
- The GBA will focus on strengthening markets and facilitating global biofuel trade.
- Concrete policy lessons will be shared, and technical support will be provided for national biofuel programs worldwide.
- The alliance will highlight successful cases and best practices in the biofuel industry.
Significance of GBA
- Addressing OPEC+: The initiative signals India’s focus on reducing dependence on conventional hydrocarbons and calls for increased production by the OPEC+
- Transformative Opportunities: GBA offer transformative opportunities for economic growth, rural development, energy self-sufficiency, reduced air pollution, and clean energy transition.
- Adoption of Sustainable Biofuels: The alliance aims to accelerate the adoption of sustainable biofuels.
India’s Biofuel Achievements
- Milestone Achieved: In the fiscal year 2020-21, India produced 4.08 billion litres of ethanol, achieving a blending rate of 10.02% and resulting in a reduction of 2.7 million tonnes of CO2 emissions.
- Goals and Targets: India aims to achieve a blending rate of 12% by 2022-23 and a goal of 20% blending by 2025, requiring an expanded production capacity of ethanol to 17 billion litres.
- Focus on Compressed Bio-Gas (CBG): India actively promotes compressed bio-gas (CBG) derived from waste through the Sustainable Alternative towards Affordable Transportation (SATAT) program.
- Target Deadline: India aims to install 5,000 CBG plants across the country by 2024.
Biofuel Advancements in Aviation
- First Commercial Passenger Flight: India conducted its first commercial passenger flight using sustainable aviation fuel (SAF) blend produced domestically.
- Program Committee Established: The Bio-Aviation Turbine Fuel Programme Committee has been established to advance the use of SAF in the aviation sector.
- Blending Targets: India aims to achieve a 1% SAF blend in jet fuel by 2025, requiring 140 million liters of SAF per year, and a more ambitious target of a 5% blend would need approximately 700 million liters per year.
Global response
- Brazil’s Support: Brazil expressed support for the GBA and its goals to expand and strengthen sustainable biofuels markets.
- Saudi Arabia’s Focus: Saudi, a major oil producer, has a focus on conventional hydrocarbons and has not favored the GBA.
- Russia’s Opec+ Involvement: Russia, as part of the Opec+ group, has been implementing production cuts despite fragile global economic recovery.
- China’s Opposition: China, a major biofuel producer, opposed the India-led initiative and boycotted a G20 meeting on tourism held in Srinagar.
Conclusion
- The establishment of GBA represents a significant step towards promoting international collaboration and the adoption of sustainable biofuels.
- India’s achievements in biofuel production and advancements in aviation fuel provide a strong foundation for the alliance’s objectives.
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Biofuel Policy
Global Biofuel Alliance can power India’s energy transition drive, but must have time-bound targets
Note4Students
From UPSC perspective, the following things are important :
Prelims level: Biofuel and its applications, India's Biofuel program, GBA and ISA
Mains level: Global biofuel alliance, Biofuel Industry, significance In particular for India, India's Biofuel programme
What’s the news?
- The upcoming 14th Clean Energy Ministerial and Eighth Mission Innovation (CEM14/MI-8) conference, scheduled to take place in Goa from July 19-22, 2023, will witness the establishment of the Global Biofuel Alliance (GBA).
Central Idea
- The prospected establishment of the Global Biofuel Alliance (GBA) led by India during its G20 Presidency, with support from Brazil and the United States, aims to foster international collaboration and cooperation to promote the acceptance and utilization of biofuels. It seeks to leverage the transformative potential of biofuels in economic growth, rural development, energy self-sufficiency, reduced air pollution, and the global transition to clean energy.
What is Biofuel?
- Biofuel is derived from biological sources, such as plants, agricultural crops, organic waste, or animal by-products.
- It is a renewable energy source that can be used as an alternative to fossil fuels.
- The production and use of biofuels aim to reduce greenhouse gas emissions and promote sustainability.
Key types of biofuels
- Bioethanol: This is an alcohol-based fuel primarily produced by fermenting sugar or starch crops, such as sugarcane, corn, or wheat. Bioethanol is commonly used as a blend in gasoline for transportation purposes.
- Biodiesel: Biodiesel is produced from vegetable oils, animal fats, or recycled cooking oil. It can be used as a direct replacement for or blended with conventional diesel fuel in vehicles.
- Biogas: Biogas is a mixture of gases, primarily methane, produced through the anaerobic digestion of organic waste materials such as agricultural residues, food waste, or sewage. It can be used for electricity generation, heating, or as a vehicle fuel.
Key Objectives and Initiatives of Global Biofuel Alliance (GBA)
- Developing robust markets for biofuels and facilitating global trade in biofuels.
- Promote policy coordination, share concrete policy lessons, and provide technical support to national biofuel programs worldwide.
- Collaborate and complement- existing regional and international agencies– energy transition initiatives, such- Clean Energy Ministerial Biofuture Platform, the Mission Innovation Bioenergy initiatives, and the Global Bioenergy Partnership (GBEP).
- By leveraging synergies–maximize impact and accelerate the biofuel industry’s growth.
India’s Biofuel Program India’s and significant strides in recent years
- Ethanol Production: In 2020-21, India produced 4.08 billion liters of ethanol, resulting in a blending rate of 10.02%. This led to a reduction of 2.7 million tonnes of CO2 emissions and significant savings in forex.
- Blending Targets: The current target for 2022-23 is to achieve a blending rate of 12%, with the ultimate goal- 20% by 2025.
- Compressed Bio-Gas (CBG) Program:
- India actively promoting CBG as a clean fuel derived from waste through the Sustainable Alternative Towards Affordable Transportation (SATAT) program. As of 46 CBG plants established so far, and around 16,164 tonnes of CBG have been sold.
- The goal- install 5,000 CBG plants across India by 2024, contributing- waste management -reducing pollution.
- Sustainable Aviation Fuel (SAF):
- India conducted its first commercial passenger flight– domestically produced sustainable aviation fuel (SAF) blend– commitment to decarbonizing the aviation sector.
- The establishment of the Bio-Aviation Turbine Fuel Program Committee by the Union Ministry of Petroleum and Natural Gas further advances the development of sustainable aviation fuel in the country.
Inspiration behind GBA: International Solar Alliance (ISA)
- The ISA jointly initiated by India and France in 2015.
- The ISA- significant contributions to combating climate change through widespread adoption of solar energy solutions.
- Facilitated- solar project development – initiatives like the Solar Finance Facility, SolarX Grand Challenge, Solar Technology Application Resource Centres, and the ‘One Sun One World One Grid Initiative.‘
- The GBA aims to replicate the success of the ISA by promoting the utilization of biofuels and reducing India’s reliance on foreign oil.
Conclusion
- The GBA is poised to revolutionize the global biofuel industry. India’s leadership in the G20 Presidency highlights the importance of biofuels in achieving energy independence, reducing carbon emissions, and fostering a clean energy transition. The GBA’s detailed roadmap, ambitious targets and initiatives will pave the way for a greener and more sustainable future.
Also read:
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Biofuel Policy
How Sensible is it Use Food Grains to Produce Ethanol?
Note4Students
From UPSC perspective, the following things are important :
Prelims level: Bioethanol, Ethanol blending
Mains level: Read the attached story
India is planning to use surplus rice, besides sugarcane, to meet its biofuel target of blending 20% ethanol with petrol.
Could this impede India’s crop diversification goals or worsen nutritional indicators? Let us see!
Govt’s plan to promote ethanol
- India is estimated to achieve about 8.5% blending with petrol by this year, which it plans to increase to a mandatory 20% blending by 2025.
Sources for ethanol
The plan is to divert its excess sugar production to produce ethanol, 3.5 million tonnes in 2021-22 and 6 million tonnes the next year, in addition to grains like rice, corn, and barley.
- Using surplus rice: The government’s food department revealed its plans to divert 17 million tonnes of surplus rice from its food stocks of 90 million tonnes to produce ethanol.
- Sugarcane: This is in addition to the 2 million tonnes of sugar which is already being diverted to produce ethanol.
How would this benefit the country?
- Cost saving: A successful biofuels programme can save India $4 billion or about ₹30,000 crore every year by lowering import of petroleum products.
- Emission cut: Ethanol is also less polluting and offers equivalent efficiency at a lower cost than petrol.
- Biofuel’s policy boost: Rising production of grains and sugarcane and feasibility of making vehicles compliant to ethanol-blended fuel makes its biofuels policy a strategic requirement.
- Early rollout: Towards this, govt has put in place interest subsidies for distilleries to expand capacity while auto firms have agreed to make compatible vehicles.
What are the unintended effects of the policy?
- Unsustainability of cash-crops: Increasing reliance on biofuels can push farmers to grow more water-intensive crops like sugarcane and rice.
- Huge water requirement: Currently use 70% of the available irrigation water, negating some positive impact on the environment of using more ethanol.
- Food and nutrition security: The move could impact India’s hunger situation by limiting the coverage of the food security schemes.
- Food inflation: Diversion of mass consumption grains can also push food prices up.
How will it impact crop diversification?
- Monotonous crops: Although the biofuels policy stresses on using less water-consuming crops, farmers prefer to grow more sugarcane and rice due to price support schemes.
- Water stress: Growing more of them can lead to an adverse impact in water-stressed areas in states.
What about food security?
- It is unethical to use edible grains to produce ethanol in a country where hunger is rampant.
- India is already a poor performer in Global Hunger Index.
- Although about 80 crore people are now receiving subsidized food grains, calculations show that over 10 crore eligible households are still excluded.
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Biofuel Policy
[pib] First supply of UCO-based Biodiesel flagged off
Note4Students
From UPSC perspective, the following things are important :
Prelims level: Generations of biofuels
Mains level: Paper 3- Used Cooking Oil based biofuel
Eco-system for collection and conversion of UCO into Biodiesel
- Minister of Petroleum & Natural Gas flagged off the first supply of UCO (Used Cooking Oil) based Biodiesel blended Diesel under the EOI Scheme.
- To create an eco-system for collection and conversion of UCO, Expressions of Interest had been initiated for “Procurement of Bio-diesel produced from Used Cooking Oil” on the occasion of World Biofuel Day on 10th August 2019.
- Under this initiative, Oil Marketing Companies (OMC) offer periodically incremental price guarantees for five years and extend off-take guarantees for ten years to prospective entrepreneurs.
Advantages
- This is a landmark in India’s pursuance of Biofuels and will have a positive impact on the environment.
- This initiative will garner substantial economic benefits for the nation by shoring up indigenous Biodiesel supply, reducing import dependence, and generating rural employment.
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Biofuel Policy
E20 Fuel to Cut Vehicular Emissions
Note4Students
From UPSC perspective, the following things are important :
Prelims level: E20 fuel
Mains level: Ethanol blended petrol programme
The government has proposed the adoption of E20 fuel — a blend of 20% of ethanol and gasoline — as an automobile fuel in order to reduce vehicular emissions as well as the country’s oil import bill.
E20 Fuel
- E20 is a blend of 20% ethanol with gasoline (petrol) and can be used as an alternative to the fuels currently available.
- The government is looking at the adoption of mass emission standards for this fuel for transport application.
- Additionally, it also wishes to facilitate the development of E20 compliant vehicles.
- The government believes that the E20 blend will not only curb vehicle emissions but help reduce the country’s oil import bill.
Ethanol – Pros and Cons
- Ethanol is a common by-product that comes from agricultural feedstock like corn, hemp, potato, etc. It can be used as a bio-fuel in Flexi-fuel vehicles.
- It is greener than gasoline because the corn and crop plantations absorb carbon dioxide from the atmosphere as they grow.
- While the fuel still releases CO2 when you burn it, the net increase is comparatively lower.
- However, ethanol is less efficient as a fuel. It has lower energy content than energy-rich gasoline and diesel.
- The rule delivers less power when burned, which in return results in more fuel consumption and lower mileage.
- Additionally, blends over E20 (20% ethanol) is highly corrosive for older vehicles as the alcohol can break down old rubber seals and can damage engines.
Vehicle compatibility
- It added the compatibility of vehicles with the percentage of ethanol in the blend would be defined by the vehicle manufacturer, which would have to be displayed on the vehicle with a sticker.
- Ethanol is a biofuel and a common by-product of biomass left by agricultural feedstock such as corn, sugarcane, hemp, potato, etc.
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Biofuel Policy
Bioethanol Blending in Petrol
Note4Students
From UPSC perspective, the following things are important :
Prelims level: Bio-ethanol
Mains level: Ethanol blended petrol programme
The government has set targets of 10 per cent bioethanol blending of petrol by 2022 and to raise it to 20 per cent by 2030 to curb carbon emissions and reduce India’s dependence on imported crude oil.
Try this PYQ:
Q.Given below are the names of four energy crops. Which one of them can be cultivated for ethanol?(CSP 2010)
(a) Jatropha
(b) Maize
(c) Pongamia
(d) Sunflower
What is Ethanol Blended Petrol (EBP) Program?
- Ethanol Blended Petrol (EBP) programme was launched in January 2003 for the supply of 5% ethanol blended petrol.
- The programme sought to promote the use of alternative and environment-friendly fuels and to reduce import dependency for energy requirements.
- OMCs are advised to continue according to the priority of ethanol from 1) sugarcane juice/sugar/sugar syrup, 2) B-heavy molasses 3) C-heavy molasses and 4) damaged food grains/other sources.
Bio-ethanol blend in India
- 1G and 2G bioethanol plants are set to play a key role in making bio-ethanol available for blending but face challenges in attracting investments from the private sector.
- 1G bioethanol plants utilise sugarcane juice and molasses, byproducts in the production of sugar, as raw material, while 2G plants utilise surplus biomass and agricultural waste to produce bioethanol.
- Currently, domestic production of bioethanol is not sufficient to meet the demand for bio-ethanol for blending with petrol at Indian Oil Marketing Companies (OMCs).
- Sugar mills, which are the key domestic suppliers of bio-ethanol to OMCs, were only able to supply 1.9 billion litres of bio-ethanol to OMCs equating to 57.6 per cent of the total demand of 3.3 billion litres.
Hurdles in meeting the demand
- Lack of infrastructure: Many sugar mills are best placed to produce bioethanol do not have the financial stability to invest in biofuel plants. There are also concerns among investors on the uncertainty over the price of bio-ethanol in the future.
- Lack of raw materials: Presently there is no mechanism for depots where farmers could drop their agricultural waste. The central government should fix a price for agricultural waste to make investments in 2G bioethanol production an attractive proposition.
- Rigid pricing mechanism: Sugars mills have to pay high prices for sugarcane set by the government even when there have been supplying gluts. The prices of both sugarcane and bio-ethanol are set by the central government.
Way ahead
- The government should provide greater visibility on the price of bioethanol that sugar mills can expect by announcing a mechanism by which the price of bio-ethanol would be decided.
- 2G bioethanol not only provided a clean source of energy but also help provide greater income to farmers and prevent them from having to burn agricultural waste which can be a major source of air pollution.
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Biofuel Policy
The evergreen debate of Food versus Fuel
Note4Students
From UPSC perspective, the following things are important :
Prelims level: Provision of biofuels policy 2018
Mains level: Paper 3- Trade offs involved in making fuels from food grains.
The article discusses the recent decision of the government to make alcohol from rice. The move was bound to trigger the debate over food security of the country with a population ravaged by hunger and poverty. While the 2009 biofuel policy had stressed the use of non-food resources, the 2018 updated policy allowed using excess grains. We all want to make a shift towards a green economy but is this the right time? Let’s find out.
What decisions did the government take?
- The National Biofuel Coordination Committee (NBCC) chaired by the Union Minister of Petroleum and Natural Gas decided to use “surplus” rice available with the Food Corporation of India (FCI) for conversion to ethanol.
- The objective is to make alcohol-based hand-sanitisers and for the blending of ethanol with petrol.
- This decision is not only audacious but also an affront to the millions of people who are deeply affected by food insecurity.
The food question
- In 2009, the National Policy on Biofuels stressed on the use of non-food resources to avoid a possible conflict between food and fuel.
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Take the US’s example: In 2018-19, an astounding 37.6 per cent of the corn produced in the US is used for making ethanol.
- In addition to cereals, oilseed crops like rapeseed, soybean and sunflower were used for biofuel production.
- Rise in food prices: Such diversion of food crops to produce biofuel was considered one of the reasons for the rise in food prices globally.
What should be India’s strategy in this debate?
- There is rampant poverty, hunger, and malnutrition in India.
- India’s position in the Global Hunger Index has slipped nine places, ranking 102 among the 117 countries in 2019.
- The National Family Health Survey (NFHS-4) 2015-16, found that 38.4 per cent of children under five years are “stunted” (height for age) and 21 per cent are “wasted” (low weight for height).
- In fact, over a period of 10 years, wasting has increased from 19.8 per cent in NFHS-3 to 21 per cent in NFHS-4.
The dictums of 2018 Policy
- The 2018 National Policy on Biofuels had a target of 20 per cent blending of ethanol in petrol and 5 per cent blending of biodiesel in diesel by 2030.
- This was to be achieved by increasing production using second-generation bio-refineries and developing new feedstock for biofuels.
- It allowed the production of ethanol from damaged food grains like wheat and broken rice, which are unfit for human consumption.
- The new policy allowed the use of excess food grain for ethanol in a bounty crop year, if endorsed by the Union Ministry of Agriculture.
Possible dangers
- The quantity of rice from which ethanol will be produced has not been announced, nor do we know the price at which such rice will be sold by the FCI.
- About 85 per cent of rice is Kharif crop, heavily dependent on monsoon.
- Despite the prediction of a normal monsoon, What happens if the monsoon predictions go wrong? Will we be able to import grain?
- Less damaged grains: Despite the commonly held belief of a lakh of tonnes of rotting grains, the FCI’s storage practices are actually quite good.
- Damaged grains as a percentage of total quantity issued by the FCI has been just about 0.01 per cent to 0.04 per cent in the last five years.
- Hardly any ethanol can be made from such a small amount of damaged grains.
- Making ethanol from sound quality grains deprives food to humans as well as livestock.
- At the time when uncertainties are looming large, it is imperative that food security and food price stability be given the highest priority.
Way forward
- Ethanol can be produced from other ingredients such as B and C heavy molasses, sugar, sugar syrup, and sugarcane juice.
- Ethanol has also been blessed with a low GST and enjoys relaxed conditions for inter-state movement if used for blending with petrol.
- Since the economy faces a bleak prospect due to the impact of COVID-19, the government should first use the food grains to meet the requirement of about 10 to 20 crore people without ration cards.
The UPSC could ask a question on the following lines “Diverting food grains for making fuels has always been a contentious issue from the food security angle. At the same time reducing India’s dependence on import for fuels is as much a serious concern. The National Policy on Biofuels-2018 sought to strike the balance between the two. Critically analyse the various provisions of National Policy on Biofuels-2018 which were different from 2009 policy.”
Conclusion
The government must ensure the food safety of the country first and if it still has surplus rice, it must facilitate export to friendly countries which are suffering an adverse impact of COVID-19 on their economies.
Back2Basics: Generations of biofuels
- There are three types of biofuels: 1st, 2nd and 3rd generation biofuels.
- They are characterized by their sources of biomass, their limitations as a renewable source of energy, and their technological progress.
- The main drawback of 1st generation biofuels is that they come from biomass that is also a food source.
- This presents a problem when there is not enough food to feed everyone.
- 2nd generation biofuels come from non-food biomass, but still compete with food production for land use.
- Finally, 3rd generation biofuels present the best possibility for alternative fuel because they don’t compete with food.
- However, there are still some challenges in making them economically feasible.
Important Provision of ‘National Policy on Biofuels, 2018
- The government aims at increasing the utilization of biofuels in the energy and transportation sectors of the country by promoting the production of biofuels from domestic feedstock in the coming decade through this policy.
- Larger goals such as the adoption of green fuels, national energy security, fighting climate change, generating employment, etc. would be facilitated through this policy. Along with that, technological advancements in the field of biofuels will also be encouraged.
- MNRE has set an indicative target of 20% blending of ethanol in petrol and 5% blending of biodiesel in diesel to be achieved by 2030.
- The percentage of the same currently stands at around 2% for petrol and less than 0.1% for diesel.
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Biofuel Policy
Biojet fuel that powered the IAF aircraft
Note4Students
From UPSC perspective, the following things are important :
Prelims level: An-32, Biojet Fuel
Mains level: Biojet Fuel and its feasiblity
In his monthly Mann ki Baat radio address, PM hailed the use of biofuel in an Indian Air Force transport aircraft.
What did PM cite?
- IAF’s An-32 aircraft successfully used a 10% blend of Indian biojet fuel and took off from Leh’s Kushok Bakula Rimpoche Airport on January 31.
- This was the first time that this mix was used in both engines of an aircraft.
- Leh is at an altitude of 10,682 ft above mean sea level and is among the world’s highest and most difficult operational airfields.
- Even during clear weather, operating an aircraft at Leh is a challenge, given the reduced power output of the engines in the rarefied atmosphere, turbulent winds, and proximity of the mountains.
What is Biojet fuel?
- Biojet fuel is prepared from “non-edible tree borne oil” and is procured from various tribal areas of India.
- This fuel is made from Jatropha oil sourced from Chattisgarh Biodiesel Development Authority (CBDA) and then processed at CSIR-IIP, Dehradun.
- Generally, it is made from vegetable oils, sugars, animal fats and even waste biomass, and can be used in existing aviation jet engines without modification.
- Jatropha oil is suitable for conversion to jet fuel. This biojet fuel has received wide acceptance from the airline industry.
Why it matters?
- Evaluating the performance of biojet fuel under conditions prevalent in Leh was considered extremely important from an operational perspective.
- The success of the flight validated the capability of the aircraft’s engines to operate smoothly with biojet fuel at the extremities of the operational envelope.
- The tests were conducted by a team comprising test pilots from the Aircraft and Systems Testing Establishment (ASTE), Bengaluru and pilots from the operational squadrons.
- The successful test flight also demonstrated the IAF’s capability to absorb newer technology, while sponsoring indigenization.
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Everything you wanted to know about Biofuels
India is set to announce a policy on flexible-fuel cars, cars that can run on bio-ethanol and petrol, or a blend of both.
Biofuel production would help farmers by supporting the diversification of agriculture into energy, power and bio-plastics.
What are Biofuels?
Simply put, fuels produced directly/indirectly from organic material i.e. biomass including plant materials and animal waste.
Biofuels can be solid, liquid or gaseous.
Primary Biofuels
Those organic materials which are used in an unprocessed form such as fuel wood, wood chips and pellets, primarily for heating, cooking, electricity production.
Secondary Biofuels
Those materials which result from processing of biomass.
Example: Liquid fuels such as ethanol and biodiesel
What are different generations of Biofuels?
First Generation
The first generation fuels are conventional biofuels made from sugar, starch or vegetable.
Issue: They come from a biomass that is also a food source, so it requires a lot of land to grow at a time when there is food shortage in the world.
Let’s learn about some of the famous examples in this category.
Ethanol – It is a type of alcohol which can be produced by any feedstock containing significant amount of sugar. It can be blended with petrol or burned in nearly pure form in slightly modified spark-ignition engines.
1 litre of ethanol produces energy equivalent to two-third of energy produced by 1 litre of petrol.
Is there any benefit of blending except providing an alternative to sugar industry? Of course, it improves combustion performance and lowers the emissions of Carbon Mono-oxide and Sulfur Di-oxide.
Biodiesel – It is produced by combining vegetable oil or animal fat with alcohol. It can be blended with traditional diesel fuel or burned in its pure form in compression ignition engines.
Source – rapeseed, soyabeen, palm, coconut or jatropha oils.
Energy content is 88-95 % of diesel
Second Generation
They come from non-food biomass such as wood, organic waste, food waste, specific biomass crops.
Issue: The second-generation fuel sources compete with food production for land.
Third Generation
They are specifically engineered crops such as algae as the energy source. These algae are grown and harvested to extract oil within them.
Fourth Generation
They are aimed at not only producing sustainable energy but also a way of capturing and storing carbon-dioxide. They are carbon-negative i.e. it takes away more carbon-dioxide than it produces.
National Policy on Biofuels 2015
The Policy endeavors to facilitate and bring about optimal development and utilization of indigenous biomass feedstocks for production of bio-fuels.
- It envisages that biofuels will be produced using non-food feedstock on waste lands
- Encouraged the use of renewable energy resources as alternate fuels to supplement transport fuels
- Proposed an indicative target of 20% biofuel blending by 2017
- Major thrust for development of second generation biofuels
- A Biofuel Steering Committee will be set up to oversee implementation of the Policy
Criticism – Govt launched National Biodiesel Mission identifying Jatropha as the most suitable tree-borne oilseed for bio-diesel production, which failed miserably. The policy is also criticized for being largely sugarcane centric.
What is the proposal under flex-fuel policy?
It aims at decreasing pollution by adopting cleaner alternatives against fossil fuels. It encourages a diversion in the sugar industry’s output away from sugar towards ethanol.
Sugar industry has an excess supply problem and it helps farmers because of diversification of agriculture into energy, power and bio-plastics.
What are the challenges to implement this policy?
- Additional sugarcane cultivation or it can be met by improved farm practices/HYV canes
- Installing special dispensing units at petrol pumps across the country
- Automakers need to be given adequate time to comply
- Oil marketing companies will have to augment storage capacity for ethanol
- Reforming tax structure so that transport of ethanol across state boundaries is not expensive
Published with inputs from Pushpendra