Why you as an Individual Indian should cheer for Ethanol, Methane and other Biofuels

India stands at a pivotal juncture in its energy evolution, grappling with soaring energy demands amidst a commitment to environmental stewardship. With a rapidly growing population, urbanisation, and industrialisation, the energy demand is rising at unprecedented rates. Traditionally, this demand has been met primarily through fossil fuels, making India the world’s third-largest oil importer. The nation’s reliance on imported fossil fuels presents formidable challenges, both economic and environmental. However, this reliance creates significant challenges: high import bills, energy insecurity, environmental degradation, and vulnerability to global price shocks. People often forget that India’s worst economic crisis, the 1990 balance of payment crisis, was created by the Gulf War oil shock. Against this backdrop, alternative fuels such as ethanol, methane, green hydrogen, and other biofuels emerge as critical pillars not only for the Indian consumer but also for India as a nation.

Biofuels and the Indian consumer

1. Cleaner Air and Reduced Pollution: Biofuels like ethanol and methane, when replacing traditional gasoline and diesel, contribute to a reduction in harmful emissions such as carbon monoxide and particulate matter, leading to cleaner air quality and a healthier environment for Indian consumers. This is particularly critical in India’s rapidly urbanising cities, which grapple with severe air pollution challenges. There have been several articles and videos dismissing stopping pollution aspect of biofuels as some sort of act of charity. They portray it as though it’s not something that is not the not the concern of the average Indian.
   This is an attitude that boggles the mind as breathing polluted air can decrease life expectancy, weaken the immune system, and cause extreme illnesses like cancer. If none of that convinces you as a reader, then feel free to start your vehicle and take around five long and deep breaths of the gas coming from your vehicle’s tailpipe. Breathing that gas will convince you of its health benefits. Please ensure that you have someone else nearby when doing this because there is a high likelihood you may need to go to the hospital afterwards. Biofuels will save you a lot of money by reducing the number of hospital visits you will need to take in your life.
2. Affordable and Accessible Energy: Developing domestic biofuel production can help stabilise fuel prices by reducing dependence on volatile global oil markets. Policies like the National Policy on Biofuels promote a shift towards affordable biofuels, easing the financial burden on consumers. There has been some controversy recently with people suggesting, E20 is a scam because price of E20 is not drastically lower. E20 is 80% petrol, 20% Ethanol. 1 litre of E20 has 0.8 litres of Petrol and 0.2 litres of Ethanol. If 1 litre of petrol costs 100Rs, then basic math shows 0.8 litres of petrol will cost 80Rs. If you add 0.2 litres of Ethanol to 80Rs of Petrol, then how can the result cost 60Rs? Brazil has been using E27 and E100 for decades, and they have observed no issues with engine maintenance. E100 will lead to reduced mileage, but E100 will also cost less.
3. Rural Development and Livelihoods: Biofuel production, especially ethanol from sugarcane and maize, provides a new income source for farmers, supports the agricultural sector, and stimulates rural economies.

Biofuels and India as a nation

1. Enhanced Energy Security and Reduced Import Bill: India’s heavy reliance on imported crude oil makes it vulnerable to global market fluctuations and geopolitical risks. Biofuels offer a strategic alternative, potentially saving billions of dollars in foreign exchange and strengthening India’s energy independence. Ethanol blending has reduced CO2 emissions by approximately 736 lakh metric tonnes. India’s trade deficit is between 70-100 billion dollars. India imports 150 billion dollars worth of crude oil. If half of India switches to biofuels, then that alone will make India a trade surplus country. This will increase the Indian government’s annual budget by at least 100 billion dollars or 8.7 lakh crores rupees, which will massively boost India’s GDP growth rate, thus benefiting every Indian.
2. Mitigating Climate Change and Meeting Environmental Targets: Biofuels, particularly green hydrogen, offer a pathway to decarbonising hard-to-electrify sectors like steel and cement, helping India meet its climate goals and commitments under the Paris Agreement. Biofuels are considered carbon-neutral, as the carbon dioxide released during combustion is offset by the CO2 absorbed by plants used in their production.
3. Driving Technological Innovation: India’s biofuel sector is a catalyst for innovation in areas like biomass conversion, efficient production techniques, and the development of sustainable aviation fuels, fostering a knowledge-based economy and attracting investment.
4. Strengthening Rural Economies: Biofuel production creates employment opportunities and supports farmers by providing new markets for their crops and waste materials, fostering a more balanced and inclusive economic development.

Challenges and the way forward

Despite the numerous benefits, India’s biofuel journey faces certain challenges. These include the “food versus fuel” debate, which requires careful consideration of the diversion of food crops like maize and sugarcane for ethanol production. Further challenges include the high cost of production of some advanced biofuels like algal biofuels, infrastructural bottlenecks in storage and distribution, and ensuring the long-term sustainability of feedstock supply. Addressing these challenges necessitates a multi-pronged approach:

1. Diversifying Feedstock: Shifting from food crops to agricultural residues, waste materials, and non-edible oilseeds like jatropha will alleviate the food versus fuel conflict.
2. Investing in Advanced Biofuels: Supporting research and development in second and third-generation biofuels, particularly green hydrogen and algae-based fuels, can unlock their immense potential.
3. Strengthening Infrastructure: Investments in dedicated ethanol transportation, storage, and blending facilities are crucial for seamless distribution and efficient blending across the country.
4. Policy Reforms: Rationalising the GST on ethanol and feedstock, implementing fair pricing mechanisms, and offering financial incentives and subsidies for biofuel producers can boost production and market growth.

Conclusion

Ethanol, methane, green hydrogen, and other biofuels are not merely alternatives to fossil fuels; they are transformative instruments crucial for India’s energy security, environmental sustainability, and economic prosperity. By embracing a well-balanced biofuel strategy that addresses the challenges and capitalizes on the opportunities, India can solidify its position as a global leader in the green energy transition, setting an inspiring example for the world.