HT G20 Agenda: Global Biofuel Alliance to be launched in Goa, says Hardeep Puri

A Global Biofuels Alliance is expected to be announced on July 22 during the G20 Clean Energy Ministerial in Goa. The GBA which is being launched under the G20 Presidency of India with support from Brazil and the US will work towards enhancing global collaboration and cooperation for adoption of biofuels and to identify global best practices for their development and deployment , Hardeep Singh Puri, Union minister of Petroleum and Natural Gas and Housing and Urban Affairs said at Hindustan Times’ event on sustainable development goals and biofuels, part of a series of events HT is hosting on India’s G20 agenda.

Read here: HT G20 Agenda: Why it makes sense for India to consider biofuels

Puri said that GBA would be signed soon and described this as a “landmark”.

Based on the experience of achieving 10% ethanol blending, five months in advance of the goal, the Centre has decided the advance the deadline for achieving 20% ethanol blending (E20) from 2030 to 2025, Puri said explaining that inhibitions associated with use of blended fuels in automobiles have been resolved now. Around 1350 petrol pumps in the country are already selling E20 fuel, he said. The government is also considering a policy on 1% blended aviation fuel based on their experience with using 1% indigenous sustainable aviation fuel for a Pune to Delhi flight in May, the minister added.

India in 2006, had a goal of achieving 5% ethanol blending but by 2014, had managed to achieve only 1.4% ethanol blending.

“In 2014 the government set a target of 10% blending by 2022 and a 20% blending 2030. We managed to achieve 10% blending 5 months ahead of schedule in 2022 and brought forward the target of 2030 to 2025 and I am very happy to say that we have already got 1350 petrol pumps in the country that are already selling E20 fuel in the country. It’s moving very fast,” Puri said.

Puri explained that biofuels could also cut import bills significantly . “We are very clear that with economy growing your energy consumption will increase. Global energy growth is at 1% but ours is three times of that. Roughly about a 100 million barrels of petrol crude oil gets consumed in a year. It’s a very price sensitive commodity. ”

India consumes roughly 5 million barrels a day. “Our consumption is going up. The oil marketing companies have paid the distillers more than ₹82000 crore in the last eight years (for ethanol) enabling timely payment to our farmers,” Puri said adding that biofuel production can support the agriculture sector.

“In this context, the importance of Biofuels as a sustainable and cleaner choice cannot be overlooked. Our efforts to build domestic capabilities over the last decade has augmented India’s energy security and also translated into a for-ex savings of over Rs.54,000 crores, over the last nine years,” he added.

The minister added that India is looking to move up from using molasses and sugar cane to using farm waste (including stubble) to produce ethanol.

Puri spoke about the recent inauguration of a second-generation ethanol plant in Panipat that produces ethanol from agricultural residue. “Agricultural residue (stubble) contributes to choking air pollution in Delhi NCR every year. We are now looking at third generation ethanol plants…India will account for 25% of global demand growth in biofuels until 2040. Everyday 60 million citizens go to the petrol pump to fill up.”

Read here: HT G20 Agenda: India on course for a low carbon future, says Amitabh Kant

He pointed out that there is a lot of scope for growth. “Today when Brazil, US and India sign up to GBA, it (the alliance) will constitute 85% of global production of ethanol of which US produces 55%; Brazil produces 27%; and India produces 3%. India has the maximum potential and is fastest growing.”

It’s taken a significant change in attitudes too, to achieve this, the minister said. Originally, he added, a 10% blending target looked ambitious. “But, we are losing our mental block about 20% ethanol blending. Automakers have told us that the same car engine will take up to 20% blending. Recently, I welcomed a flight from Pune to Delhi that used 1% blended sustainable aviation fuel. If you make 1% blended aviation fuel mandatory as part of policy you will require 140 million litres of ethanol fuel. ”

GBA is also being supported by major International organisations such as the World Economic Forum, International Energy Forum, International Energy Agency and the alliance as a guiding principle will support each country’s national-level policy/ strategy/ goals/ circumstances and member countries can choose to be associated with initiatives best suited for their decarbonization journey. The membership to the alliance is also open for interested countries beyond G-20 as well. GBA will also be a competent organisation which will set technical standards for Sustainable Aviation Fuel business in collaboration with relevant Industry bodies. The GBA will be having a three-category membership structure bringing together (i) member countries, (ii) partner organizations and (iii) industries. Several countries are willing to join, Puri said.

GREEN HYDROGEN PUSH

Green Hydrogen, that produced through the use of green or renewable energy, will be the fuel of the future, the minister said, adding that it was in his 2021 Independence Day speech that the Prime Minister said that India would launch its Green Hydrogen initiative on “ mission mode”.

Puri said the government’s seriousness of resolve in implementing Green Hydrogen on mission mode is apparent from the ₹19,700 crore support announced under production linked incentive (PLI) scheme to promote green hydrogen for electrolysers. As a country that is a world leader in renewable energy -- India is the only country to have met its NDC or nationally determined contributions thus far -- Green Hydrogen is a natural progression for India, he added.

Read here: In G20, India is pushing for global cooperation

Since Hydrogen can’t really be transported in gaseous form, it makes sense for it to be used locally, the minister said. And India needs the energy, he added.

“We have to become self-reliant in the energy sector. How long will we be dependent on others in the field of energy? We should be self-reliant in the field of solar energy, wind energy, various renewable energy sources and must lead in terms of Mission Hydrogen, bio fuel and electric vehicles.”