• Bio-ethanol is looked upon as a means to reduce India’s oil import dependency, save forex, address environmental issues and give a boost to domestic agriculture sector.

• Blending of bio-ethanol in petrol has not only augmented India’s energy security but also translated into a forex impact of over Rs.41,500 crores, reduced GHG emissions of 27 lakh MT and also led to the expeditious payment of over Rs.40,600 crores to farmers.

• Encouraged by the progress, the National Biofuels Policy has been amended and the target of 20% ethanol blending was advanced from 2030 to 2025-26.

• PSU OMCs are setting up 12 2G bio-refineries with an investment of Rs.14,000 crore.

Compressed Biogas 

• Sustainable Alternative Towards Affordable Transportation (SATAT) was launched on 1st October 2018 aiming to establish an ecosystem for production of Compressed Bio Gas (CBG) from various waste/ biomass sources in the country.

• The scheme envisages setting up of 5000 CBG plants for production of 15 Million Metric Ton (MMT) per annum of CBG by 2023-24.

• As on 31st October 2022 Oil and Gas Marketing Companies participating in SATAT have issued 3694 Letters of Intent (LoI) to entrepreneurs for procurement of CBG produced by them. Further, 38 CBG/biogas plants with installed capacity around 225 MT per annum have been commissioned by LoI holders.

• CBG sector offers an attractive and green investment opportunity for local as well as global investors.

Biodiesel

• MoP&NG announced a Biodiesel Purchase Policy which became effective 1st January 2006.

• Presently, bio-diesel is being produced in the country primarily from imported palm stearin oil. In order to phase-out palm stearin, and as a measure towards import substitution, it has been decided to promote domestically available used cooking oil (UCO) as the feedstock.

• UCO has been identified as a potential raw material for biodiesel production in National Policy on Biofuels-2018. UCO can be collected from Bulk Consumers such as hotels, restaurants, canteens, etc. for conversion.

• Oil Marketing Companies (OMCs) are periodically floating Expression of Interest (EoI) for procurement of Biodiesel produced from UCO.