National Policy on Biofuels - 2018

 National Policy on Biofuels - 2018
 National Policy on Biofuels - 2018

About National Policy on Biofuels - 2018  

Important features of this policy are :

1.The Policy categorises biofuels as Basic Biofuels :
  • First Generation (1G)   -  bioethanol and biodiesel and Advanced Biofuels
  • Second Generation (2G)- ethanol, Municipal Solid Waste (MSW) to drop-in fuels,
  • Third Generation (3G) - biofuels, bio-CNG etc. to enable extension of appropriate financial and fiscal incentives under each category.
2.  It expands the scope of raw material for ethanol production by allowing use of Sugarcane Juice, Sugar containing materials like Sugar Beet, Sweet Sorghum, Starch containing materials like Corn, Cassava, damaged food grains like wheat, broken rice, rotten Potatoes, unfit for human consumption for ethanol production.

3. It  allows use of surplus food grains for production of ethanol for blending with petrol with the approval of National Biofuel Coordination Committee.

4. This  Policy indicates a viability gap funding scheme for 2G ethanol Bio refineries of Rs.5000 crore in 6 years in addition to additional tax incentives, higher purchase price as compared to 1G biofuels.

5. It encourages setting up of supply chain mechanisms for biodiesel production from non-edible oilseeds, Used Cooking Oil, short gestation crops.

6. Roles and responsibilities of all the concerned Ministries/Departments with respect to biofuels has been captured in the Policy document to synergise efforts.

How this policy will Benefit us ?

1. Clean Environment - The reduction in the GHG (Green House Gas ) emissions by reducing crop burning & conversion of agricultural residues or wastes to biofuels .

2. Health benefits - Used cooking oil for making biodiesel prevent diversion of used cooking oil in the food industry.

3. Employment Generation: - It can contribute to the jobs in village level entrepreneurs , Plant operations and Supply Chain management.

4. Additional income to farmers-  By adopting 2G technologies, agricultural residues or waste which  are burnt by the farmers can be converted to ethanol and will  help to fetch a price for these waste if a market is developed for the same and will help in  price stabilization

5. MSW management - There are technologies available which can convert waste/plastic, MSW to drop in fuels. One ton of such waste has the potential to provide around 20% of drop in fuels.  It will help in  good municipal  waste  management from used cooking oils.

6. Infrastructural Investment in Rural Areas :- The addition of 2G bio refineries across the Country will boost infrastructural investment in the rural areas.

7. Reduce Import Dependency: - 1  cr litre of E10 saves Rs 28 cr of forex at current rates .
The ethanol supply for the year 2017-18 is likely to see a supply of around 150 crore litres of ethanol which will result in savings of over Rs.4000 crore of forex.

Summary : 

  • Helps in getting extra income  for farmers 
  • Reduce Green House Gases 
  • Help in making biodiesel fuel from used cooking oils
  • Help in managing Municipal Solid wastes  
  • Importing biofuels from other countries will get reduced 
Related : National Mineral Policy-2019


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