How Global Biofuel Alliance is invigorating energy security worldwide

In a historic move, Bharat has taken a giant stride aiming towards a more sustainable and eco-friendly energy future for the world with the establishment of the Global Biofuel Alliance at the G20 Leaders Summit. This ambitious initiative aims to bring countries together to expand and create new markets for sustainable biofuels, fostering collaboration in biotechnology, innovation, and market development related to biofuels. The proposal for the Global Biofuel Alliance comes on the heels of the successful launch of the International Solar Alliance in 2015, demonstrating commitment of Bharat to leading the drive for renewable energy solutions. Argentina, Bangladesh, Brazil, Bharat, Italy, Mauritius, South Africa, UAE and USA are initiating members of the alliance whereas Canada and Singapore are observer countries. As many as 19 countries and 12 international organisations have so far agreed to join the alliance, including both G20 members and non-member countries. As we stand at the cusp of this transformative initiative, it is essential to understand the significance of biofuels in the global energy matrix. Currently, the United States holds the rank of the world leader in ethanol production, boasting a substantial 55 per cent share, followed by Brazil at 27 per cent. In stark contrast, Bharat, despite being an agricultural powerhouse, contributes only 3 per cent to the global biofuel production. If we include Europe and Indonesia, these five nations collectively produce a staggering 80 per cent of the world’s biofuels. The primary goal of the Global Biofuel Alliance is to facilitate cooperation among member nations to expand sustainable biofuel production and consumption. This will involve the sharing of best practices, technical support, and capacity building to overcome the challenges faced by the biofuel industry, particularly in terms of feedstock availability. We have witnessed that the global economy is often facing disruptions in the energy supply chain. Energy prices and market volatility create uncertainties in global economies. At this juncture, the Global Biofuel Alliance paves the way for a just energy transition. It will accelerate the production of biofuel, boost cooperation for innovation, provide low-cost financing, facilitate access to emerging technologies, and develop a transparent and resilient global market for ethanol, biodiesel, and Biogas. It will create green jobs and livelihoods in developing countries in conjunction with the aim of achieving zero and low emission. One of the critical challenges in biofuel production is ensuring an adequate supply of feedstock. To address this challenge, Bharat must develop a long-term strategy that encourages crop diversification. Balancing the nation’s need for both energy and food security is paramount in this endeavor. The central government has taken several major steps to boost the biofuel sector, including the launch of the ethanol blending program in June 2021 and the revision of the National Biofuel Policy in June 2022. Achieving the 10 per cent ethanol blending target ahead of schedule in November 2022 saved a substantial Rs 46,000 crore. Moreover, reducing GST on ethanol blending from 18 percent to 5 percent has incentivized ethanol use across the country. The central government has already taken steps in this direction by allowing the use of maize, damaged food grains (DFG), in addition to sugar, for ethanol production. Several states, including Uttar Pradesh, Tamil Nadu, and Bihar, have also implemented biofuel policies at the state level, further promoting the adoption of sustainable energy sources. Rajasthan, Madhya Pradesh, Chhattisgarh have established rules and authorities related to biofuels. The country’s first ethanol plant has been started with public-private partnership in Kabirdham district of Chhattisgarh. The operation of the plant established by a private company has started in Chhindwara and Balaghat districts of Madhya Pradesh. Madhya Pradesh government aims to produce 60 crore liters of ethanol by 2024. Gobar Dhan Yojana (Galvanizing Organic Bio-Agro Resources Wealth Scheme) launched by the Central Government is helpful in collecting the raw material. The efforts made by some state governments in this direction are yielding pleasant results. The first compressed biogas plant under construction in Kurukshetra, Haryana is expected to produce four lakh tonnes of biofuel per year. With this, the construction of a biogas plant will be completed in Karnal by next year. This plant will consume 40 thousand tonnes of straw every year. This will not only relieve the farmers from the problem of burning stubble, they will also earn income in return. Public sector oil companies have established bio-refineries in Panipat (Haryana), Bathinda (Punjab), Numaligarh (Assam), Bargarh (Odisha). Indian Oil Corporation (IOCL) 2G (second generation) ethanol plant in Panipat processes 2.1 lakh metric tonnes (MT) of dry rice straw annually, converting it into 3 crore litres of ethanol. Most of this dry rice straw is burnt by farmers in Haryana and Punjab as they clear their fields for the next crop post-harvest. Central government cooperative Kribhco’s upcoming 2.5 lakh litre bio-ethanol plant in Hazira, Gujarat, is a shining example of how biofuels can benefit farmers and the environment. This plant is set to produce 8.25 crore liters of biofuel, utilizing approximately 2.5 lakh metric tonnes of maize. By converting surplus or low-quality corn into ethanol, this initiative reduces food grain wastage and promotes sustainability. Additionally, the residue left after ethanol production can be used as cattle feed, leaving a minimal carbon footprint on the environment. Ethanol, bio-diesel, and compressed biogas (CBG) are the primary products of biofuels. Ethanol, a type of alcohol, is blended with petrol and diesel to improve their quality and reduce carbon dioxide emissions. It is derived from both food grains (first-generation ethanol) and non-food residues like agricultural and animal waste (second-generation ethanol). Research is even underway to produce third-generation ethanol from micro-bacteria and algae. Bio-diesel, another significant biofuel, is made from vegetable oils and fats through a process known as trans-esterification. Its environmental friendliness, owing to the absence of sulfur and aromatics, makes it a sustainable alternative to traditional diesel fuel. The establishment of the Global Biofuel Alliance will open doors to advanced technologies related to pyrolysis, gasification, and hydrothermal liquefaction, enabling member nations to harness the full potential of biofuels. In India, where 80 per cent of crude oil and 50 per cent of natural gas are imported to meet the nation’s energy needs, biofuels represent a significant renewable energy resource. With foreign exchange reserves of over Rs 9 lakh crore spent on crude oil imports, the strategic development of biofuels can play a pivotal role in reducing the country’s dependence on foreign oil. Compressed biogas (CBG), the main form of biofuel, is said to be a greener version of natural gas. Five thousand CBG plants are being established across the country. According to data released by the Ministry of Petroleum and Natural Gas, there will be an investment of about $ 20 billion in CBG plants by 2024 with a production target of 15 MMT. These also include CBG plants established by the public and private sector as well as cooperative institutions. Initially, these plants will produce 15 million tonnes of compressed biofuel (CBG). Biogas will be prepared for these plants with the help of waste generated from agriculture, forest, animal husbandry, sea and municipality. This will reduce our dependence on oil and conventional natural gas. Compressed biogas (CBG) holds a vital role in the biofuel landscape, often referred to as the green version of natural gas. India is embarking on the ambitious task of setting up 5,000 CBG plants across the nation, with an estimated investment of approximately $20 billion by 2024 and a production target of 15 million metric tons. These plants will be established through cooperative efforts involving the public and private sectors. One of the unique advantages of biofuels in India is the abundant availability of raw materials from farming and livestock. With over 53 crore livestock in the country, organic residues from these animals can be harnessed to produce biofuels, electricity, and organic manure. Utilising agricultural residue as a raw material for biofuels not only addresses environmental concerns but also reduces pollution-related diseases. To realise the full potential of biofuels in Bharat’s energy landscape, it is imperative to establish a sustainable supply system. This will incentivise the automobile industry to develop vehicles compatible with E-20, while also considering exemptions for existing vehicles. Crop diversification should remain at the heart of biofuel production planning, ensuring that production of crops like paddy and sugarcane does not exceed demand, especially given their water-intensive nature. As Bharat spearheads the establishment of the Global Biofuel Alliance, it is not only promoting a sustainable energy future for itself but also leading the world towards a greener tomorrow. With a robust strategy and international cooperation, biofuels have the potential to play a pivotal role in reducing our carbon footprint and securing a cleaner, more sustainable future for generations to come. The author is a public policy expert. Views expressed in the above piece are personal and solely that of the author. They do not necessarily reflect Firstpost’s views. Read all the  Latest News,  Trending News,  Cricket News,  Bollywood News, India News and  Entertainment News here. Follow us on  Facebook,  Twitter and  Instagram.