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August 10, 2025

World Biofuel Day 2025: How biofuels can be beneficial as well as challenging for India

The CSR Journal Magazine

World Biofuel Day is observed every year on 10th August to create awareness about the importance of non-fossil fuels as an alternative to conventional fossil fuels and to highlight the various efforts made by the Government in the biofuel sector.

What is biofuel? It is a kind of fuel that is produced from organic matter, such as plants, algae, or agricultural waste. It is a renewable energy source that can be used to power vehicles, generate electricity, or provide heat.

Types of Biofuels include:

Ethanol: A biofuel produced from fermented plant materials, such as sugarcane, corn, or wheat. It can be blended with gasoline to power vehicles.

Biodiesel: A biofuel produced from vegetable oils, animal fats, or algae. It can be used in diesel engines.

Biogas: A biofuel produced from the anaerobic digestion of organic matter, such as food waste or agricultural waste. It can be used to generate electricity or heat.

Benefits and challenges of biofuels

Biofuels are beneficial in a number of ways. Biofuels are produced from renewable biomass sources, reducing dependence on fossil fuels. Biofuels can reduce greenhouse gas emissions compared to fossil fuels, contributing to climate change mitigation. These can also enhance energy security by providing a domestic source of energy. Biofuels offer opportunities to reduce carbon emissions, create rural jobs, and enhance energy security for India.

But these also come with their share of challenges. For example, biofuel production can compete with food production, potentially leading to food price increases or shortages. Biofuel production requires significant land and water resources, potentially leading to environmental impacts. The production and use of biofuels can be energy-intensive, potentially reducing their overall energy efficiency. While biofuel production is increasing in India, it also poses challenges in areas like feedstock sustainability, infrastructure development, and poor quality of biofuel.

India rapidly expanding biofuel production

India is rapidly expanding its biofuel production and usage, mainly through ethanol and biodiesel, to reduce dependence on fossil fuels and lower carbon emissions. The government has set ambitious targets for ethanol blending in petrol, aiming for 20% ethanol blending by 2025-2026. This move is expected to not only reduce greenhouse gas emissions but also boost the rural economy by increasing demand for crops like sugarcane and maize.

Government policies, such as the National Policy on Biofuels 2018, and initiatives like the Ethanol Blending Program (EBP), are driving this growth. India aims to achieve 20% ethanol blending in petrol and 5% biodiesel blending in diesel by 2030.

The National Policy on Biofuels 2018 promotes the production of biofuels from various feedstocks, including non-food sources like crop residues and waste. India launched the Global Biofuels Alliance in 2023 with other countries to promote global biofuel deployment.

Government initiative like the National Bio-Energy Mission provides financial incentives and regulatory support for biofuel production. The Ethanol Blending Program aims to achieve 20% ethanol blending in petrol by 2025-2026.

Biodiesel Production and Promotion provides incentive on biodiesel production from non-edible oil sources like Jatropha and Pongamia.

India and Brazil are collaborating on biofuel production, technology, and policy, leveraging their expertise in sugarcane-based ethanol production.

Major sources of biofuels in India

Types of Biofuels in India include first-generation biofuels, which are produced from consumable food items like sugarcane, maize, and vegetable oils. Second-generation biofuels, which are derived from non-food feedstocks like agricultural waste and waste vegetable oils. Third-generation biofuels, which are produced from algae and fourth-generation biofuels, which are made using non-arable land and advanced production technologies.

India plans to achieve 20% ethanol blending in petrol, which will help reduce crude oil imports and support domestic farmers. Biofuel production is expected to create rural employment opportunities and increase farmers’ incomes.

Why biofuel can be a threat for India?

However, there are several challenges. While advancements are being made in 2G and 3G biofuel technologies, high production costs, low yields, and the need for significant infrastructure investments still pose a problem. The use of food crops like sugarcane and maize for biofuel production raises concerns about potential impacts on food security and food prices.

Also, large-scale biofuel feedstock cultivation may lead to land-use changes, potentially affecting biodiversity, soil health, and water resources if not managed sustainably. Continuous cultivation of ethanol-centric crops like sugarcane and rice leads to monoculture, depleting soil fertility and consuming excessive water. For instance, producing 1 kg of sugar requires up to 2,000 liters of water, which is difficult in water-scarce region.

Finally, limited storage capacity for biomass residue is a significant issue, contributing to stubble burning and affecting project economics.

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