Watch | Why is the global biofuels alliance critical for India?

India announced its Global Biofuels Alliance at the recently concluded G-20 Summit in New Delhi. The country was the chair for this year’s G20 alliance.

Nineteen countries and 12 international organisations have agreed to participate. Why is the announcement significant? Biofuels have, after all, been talked about for a while now, with the industry not having made as much progress as it should have.

Why is the biomass industry finally sensing that its time has come? We are also joined by M. Ramesh, Associate Editor of Business Line, to discuss this.

Script and presentation: K. Bharat Kumar

Guest: M. Ramesh

Production: Shibu Narayan

Videography: Thamodharan Bharath

New Delhi:

A Global Biofuels Alliance to promote the use of sustainable biofuels was launched by Prime Minister Narendra Modi at the G20 Summit in New Delhi this weekend. PM Modi called on countries to join the alliance and set a global target of blending 20% ethanol with petrol.

India is increasing its production capacity of biofuels, a renewable energy source produced from organic matter. The country imports more than 85% of its crude oil requirements, so it is looking to reduce its reliance on imported oil by producing biofuels from domestic sources.

What is The Global Biofuels Alliance?

The alliance was launched to develop an alliance of governments, international organisations, and industries to promote the adoption of biofuels. The alliance aims to ensure the reliable and affordable supply of biofuels, while promoting sustainable production methods.

In 2009, developed countries pledged to provide $100 billion per year by 2020 to help developing countries combat climate change. However, this promise was not fulfilled. The agreement on the Global Biofuels Alliance during India’s presidency of the G20, as the world’s third-largest oil consumer, is therefore seen as a significant moment for the country, which is being hailed as the voice of the Global South.

The Global Biofuels Alliance mirrors the International Solar Alliance which was launched in 2015 by India and 120 signatory countries in Paris. The ISA’s main aim is to bring clean and affordable solar energy within the reach of everyone. Similarly, the biofuels alliance will work toward providing biofuels

How It Will Benefit India

The launch of the Global Biofuels Alliance is a significant milestone in the global effort to end reliance on fossil fuels. For India, which imports more than 85% of its crude oil, the alliance presents an opportunity to reduce not just the cost of importing oil but also its reliance on oil and gas. The workings of this alliance will also help mitigate the challenges posed by climate change.

“The Biofuel Alliance is a win-win situation for Atmanirbhar Bharat. It will help to reduce air pollution, create jobs, and make India a leader in the production and use of biofuels. The alliance is also aligned with India’s goal of becoming a carbon-neutral country by 2070,” Union Minister Nitin Gadkari told NDTV recently.

India aims to blend 20% ethanol extracted from sugarcane and agricultural waste with petrol by 2025 and is also simultaneously setting up dozens of compressed biogas (CBG) plants.

The Global Biofuels Alliance will accelerate India’s existing biofuels programmes, such as the Sustainable Alternative Towards Affordable Transportation (SATAT) programme – an initiative aimed at setting up compressed biogas production plants, and the Gobardhan scheme which converts waste products to clean energy. This will help to increase farmers’ incomes, create jobs, and boost the overall development of the Indian ecosystem.

The global ethanol market is projected to grow from $99.06 billion in 2022 to $162.12 billion by 2032, at a compound annual growth rate (CAGR) of 5.1%.

New Delhi:

Union Minister Nitin Gadkari, in an exclusive interview with NDTV, spoke about the importance of biofuels in reducing world pollution and making India a carbon-neutral nation.

The Global Biofuels Alliance was launched by Prime Minister Narendra Modi at the 18th G20 Leaders’ Summit in New Delhi yesterday. PM Modi called on countries to join the initiative and set a global target of blending 20% ethanol with petrol.

“The Biofuels Alliance is a historic event that will help us reduce world pollution in a major way,” Mr Gadkari said. “Using ethanol in petrol is a major achievement, and it will be especially helpful for farmers, who can now sell their surplus crop to fuel stations.”

India is increasing its ability to produce biofuels, a renewable energy source derived from organic matter. The country imports more than 85% of its crude oil requirements, so it is looking to reduce its reliance on imported oil by producing biofuels from domestic sources.

The Alliance aims to secure the supply of biofuels, ensure their affordability, and promote sustainable production.

Mr Gadkari, the Union Minister for Road Transport and Highways, also spoke about the importance of green hydrogen in India’s future. 

“Green hydrogen is a futuristic vision for India,” he said. “It has the potential to make our automobile sector the number one in the world.”

In 2009, developed countries pledged to provide $100 billion per year by 2020 to help developing countries combat climate change. However, this never materialised. The Biofuel Alliance being agreed when the G20 presidency is with India, the world’s third-largest oil consumer, is therefore seen as a landmark moment for the country that is being hailed as the voice of the Global South.

“The Biofuel Alliance is a win-win situation for Atmanirbhar Bharat. It will help to reduce air pollution, create jobs, and make India a leader in the production and use of biofuels. The alliance is also aligned with India’s goal of becoming a carbon-neutral country by 2070,” Mr. Gadkari told NDTV.

The launch of the alliance coincides with India, the United States, and several major economies announcing an ambitious India-Middle East-Europe Economic Corridor. 

The initiative, seen by many as a potential alternative to China’s Belt and Road Initiative, was jointly announced by PM Modi and the leaders of the United States, Saudi Arabia, the United Arab Emirates, France, Germany, Italy, and the European Union on the sidelines of the G20 summit.

Once completed, the project can serve as a modern-day Silk Road that functioned as the central trade route facilitating economic partnerships, political alliances, and cultural integration across continents.