National Policy on Biofuels (The Policy transfer from MNRE to Ministery of Petrolium)
Salient Features -
- An indicative target of 20% blending of biofuels both for biodiesel and bioethanol
by 2017
- Biodiesel production from non-edible oilseeds on waste, degraded and marginal lands
to be encouraged
- A Minimum Support Price (MSP) to be announced for farmers producing non-edible oilseeds
used to produce biodiesel
- Financial incentives for new and second generation biofuels, including a National
Biofuel Fund
- Setting up a National Biofuel Coordination Committee under the Prime Minister for
a broader policy perspective
- Setting up a Biofuel Steering Committee under the Cabinet Secretary to oversee policy
implementation
- Several ministries are involved in the promotion, development and policy making
for the biofuel sector
- The Ministry of New and Renewable Energy is the overall policymaker, promoting the
development of biofuels as well as undertaking research and technology development
for its production
- The Ministry of Petroleum and Natural Gas is responsible for marketing biofuels
and developing and implementing a pricing and procurement policy
- The Ministry of Agriculture’s role is that of promoting research and development
for the production of biofuel feedstock crops
- The Ministry of Rural Development is specially tasked to promote Jatropha plantations
on wastelands
- The Ministry of Science & Technology supports research in biofuel crops, specifically
in the area of biotechnology
Recent Developments -
The Union Cabinet has approved the following decisions related to Bio-ethanol and
Biodiesel for implementation of National Policy on Biofuels;
- Sugarcane or sugarcane juice may not be used for production of ethanol and it be
produced only from molasses
- Ethanol produced from other non-food feed-stocks besides molasses like cellulosic
and lignocellulosic materials and including petrochemical route, may be allowed
to be procured subject to meeting the relevant BIS standards
- The MS and HSD control order dated 19.12.2005 may be suitably amended to acknowledge
private biodiesel manufacturers, their authorized dealers and JVs of OMCs authorized
by Ministry of Petroleum and Natural Gas (MoPNG) as Dealers and give Marketing /
distribution functions to them for the limited purpose of supply of bio-diesel to
consume INR. The supply will be made as per quality standards applicable and prescribed
by the MoPNG
- Relaxation in Marketing resolution No.P-23015/1/20001-Mkt.dated 08.03.2002 and a
new clause be added to give marketing rights for B100 to the Private biodiesel Manufacturers,
their authorised dealers and JVs of OMCs authorised by MoPNG for direct sales to
consumers
- The price of bio-diesel will be market determined
First Generation Biofuels -
'First-generation biofuels' are biofuels made from sugar, starch, vegetable oil
or animal fats using conventional technology. The basic feedstock's for the production
of first generation biofuels are often seeds or grains such as sunflower seeds,
corn or soybeans which are pressed to yield vegetable oil that can be used for producing
biodiesel. These feedstock's could instead enter the animal or human food chain,
and as the global population has risen their use in producing biofuels has been
criticised for diverting food away from the human food chain, leading to food shortages
and price rises.
Second Generation Biofuels -
Second-generation biofuels use non-food crops as the feedstock, these include waste
biomass, the stalks of wheat, corn, wood, and special-energy-or-biomass crops (e.g.
Miscanthus). Second generation (2G) biofuels use biomass to liquid technology, including
cellulosic biofuels. Many second generation biofuels are under development such
as biohydrogen, biomethanol, DMF, Bio-DME, Fischer-Tropsch diesel, biohydrogen diesel,
mixed alcohols and wood diesel. Cellulosic ethanol production uses non-food crops
or inedible waste products and does not divert food away from the animal or human
food chain. Lignocellulose is the "woody" structural material of plants. This feedstock
is abundant and diverse, and in some cases (like citrus peels or sawdust) it is
in itself a significant disposal problem.
Third Generation Biofuels -
Algae fuel, also called oilgae or third generation biofuel, is a biofuel from algae.
Algae are low-input, high-yield feedstock's to produce biofuels. Based on laboratory
experiments, it is claimed that algae can produce up to 30 times more energy per
acre than land crops such as soybeans, but these yields have yet to be produced
commercially. With the higher prices of fossil fuels (petroleum), there is much
interest in algaculture (farming algae). One advantage of many biofuels over most
other fuel types is that they are biodegradable, and so relatively harmless to the
environment if spilled. Algae fuel still has its difficulties though, for instance
to produce algae fuels it must be mixed uniformly, which, if done by agitation,
could affect biomass growth.
Download : MNRE National Policy on Biofuels Policy