Ethanol Blending achieves percentage rise of 15% by 2024, fostering sustainable energy

New Delhi:  During the 12th Edition of the CII Bioenergy Summit, Shri Hardeep Singh Puri, Minister of Petroleum and Natural Gas, emphasized India's significant advancements in bioenergy, in line with the summit's theme, "Fuelling the Future - Securing India’s Green Growth Goals."

The Oil and Petroleum Minister highlighted the success of India's ethanol blending initiative, noting that the blending percentage has risen from 1.53% in 2014 to a projected 15% by 2024.

In response to these achievements, the government has revised its target for 20% blending to 2025, demonstrating its dedication to sustainable energy. Additionally, he disclosed that discussions have commenced to outline the future roadmap after reaching the 20% blending target.

The Minister shared impressive outcomes of the ethanol program, revealing that from 2014 to August 2024, it has generated foreign exchange savings of Rs 1,06,072 crore, reduced CO2 emissions by 544 lakh metric tons, and achieved crude oil substitution of 181 lakh metric tons. Payments to distillers by OMCs have reached Rs 1,50,097 crore.

Furthermore, he said, farmers have been paid Rs 90,059 crore, empowering them from being Annadata to being Urjadata. Additionally, he mentioned the government's ambitious targets for Sustainable Aviation Fuel (SAF), aiming for 1% blending in 2027 and 2% in 2028, positioning India as a leader in bio-mobility.

At the event, Shri Hardeep Singh Puri emphasized India’s robust economic growth, predicting it will drive 25% of global energy demand over the next two decades. He noted that bio-energy will be crucial in meeting this demand while advancing climate goals and rural development. Currently valued at US$44 billion (as per Wood Mckenzie), the Minister said that the bio-energy market is projected to grow to US$125 billion by 2050.

India’s position as a major biofuel producer and consumer has been strengthened through coordinated policies, political support, and abundant feedstocks, said Shri Hardeep Singh Puri. He noted that the International Energy Agency (IEA) forecasts a growth potential of 3.5 to 5 times for biofuels by 2050 due to Net Zero targets, presenting a substantial opportunity for India.

The Global Biofuels Alliance (GBA) aims to facilitate knowledge sharing, technological advancement, and policy development, unlocking a $500 billion opportunity in biofuels and accelerating global adoption through technology transfer.

He said that government initiatives, such as the Indian Solar Alliance (ISA) and GBA, aim to accelerate the transition to cleaner energy sources, reduce import dependency, save foreign exchange, promote a circular economy, and move toward a self-reliant energy future.

Shri Puri also highlighted India’s collaboration with Brazil, emphasizing the importance of joint efforts in sustainable bioenergy and biofuels to enhance energy security and reduce carbon emissions, particularly in hard-to-decarbonize sectors like aviation and shipping.