Trade4asia Exhibition Stall Biofuels and Biodiesel in India: The Future at Energy Expo
By Trade4Asia Team

Biofuels and Biodiesel in India: The Future at Energy Expo

Jul-19-2025
Biofuels and Biodiesel in India: The Future at Energy Expo

When energy entrepreneurs, policymakers, and agri-entrepreneurs met at the Energy Expo, there was excitement in the air. India's experience with biofuels—from ethanol and biodiesel to compressed biogas—took pride of place, highlighting concrete momentum, innovative collaborations, and a shared vision for a greener fuel future. Vitalis Power Engineering was among them, motivated by the energy and potential in India's fuel journey.

1. An Evolving Landscape of Fuel Innovation

India is rapidly transitioning to a bio-energized ecosystem powered by agricultural residues, dairy byproducts, and circular economy principles. The expo offered a space where stakeholders—from sugar mill operators exploring ethanol from cane juice to CBG startups turning cattle dung into clean fuel—shared real-world success stories and scalable models.

Speakers pointed out how Gujarat's dairy cooperatives have turned dung into compressed biogas and powered more than 80,000 vehicles every year, with 30 new CBG plants in the pipeline and household biogas units going across large swathes of the country. This is not only innovation; it's socio-economic transformation—enabling farmers while enabling tomorrow.

2. Pillars of Progress—Policy, Technology, and Scale

National Policy & Blending Mandates

India's National Policy on Biofuels released in 2018 and revised in 2022 fast-tracks obligated blending of ethanol to 20% by 2025–26 and biodiesel to 5% by 2030. Fixed pricing, tax relief, priority lending, and guaranteed purchase agreement with PSU OMCs provide a firm direction to producers and investors.

Feedstock Innovation & Circular Economy

The clean-fuel engine is being fueled by a new generation of feedstocks—used cooking oil, non-food oils such as Jatropha, crop residue, and whey. Gujarat's Amul pilot that is converting whey into bioethanol is estimated to generate ₹700 crore in farmers' income and scale low-carbon fuel production on an enormous level.

India's SATAT (Sustainable Alternative Towards Affordable Transportation) initiative is scaling up CBG production with the help of agricultural waste and municipal biomass. It will increase thousands of plants and millions of tonnes of fuel every year, eliminating waste and fossil fuel reliance.

Scaling Technology & Production

Second-generation (2G) ethanol refineries have come on stream in Indian Oil, HPCL, and BPCL plants, converting crop residue into fuel. Investment plans worth 5,000–10,000 crore are to establish a few large-scale 2G bio-refineries. In addition, biodiesel production is increasing, but from a small base—currently only 33% of capacity and producing only a tiny fraction of the 200 lakh tonnes required for 5% blending by 2030.

3. Expo Features: Ground-Level Biofuel Technology

Biodiesel Technologies & Feedstock Variety

Modules for producing biodiesel from non-edible oils, spent oil, and crop residues were demonstrated by exhibitors. Features such as integrated extraction–production modules, on-board degumming, and space-saving filling systems reflected the ease with which rural communities and small businesses can get into the value chain of biofuels.

Ethanol Blending & Flexible Fuel Vehicles

E20 fuel (20% ethanol mix) is currently on sale at more than 17,000 retailers, and ethanol-blending levels hit 18–18.4% by March 2025—short of the target 20%. OEMs in the expo featured flex-fuel cars and retrofit kits for higher ethanol blends.

Compressed Biogas & Digesters

CBG technology suppliers showcased community, cluster-type, and household biogas digesters under SATAT. Most plants here employ cattle dung and agri-residue to generate transport fuel and domestic cooking fuel, with slurry-to-fertilizer cycles.

Sustainability & Lifecycle Insights

Roundtables addressed lifecycle emissions with first-generation versus waste-based fuels. Experts highlighted the significance of second- and third-generation routes, particularly algae-based fuels, to prevent food–fuel competition and provide lower carbon intensities.

4. Human Narratives & Strategic Partnership

In addition to tech showcases, the expo encouraged genuine ties: sugar-mill managers negotiating ethanol deals, startup founders selling CBG factories, public sector OMCs sealing off-take deals, and policymakers charting multi-state biofuel routes.

Oral testimonies reflected setbacks from feedstock supply to blending logistics, and the manner in which rural entrepreneurs leveraged biofuel projects to upscale livelihood prospects. The convention presented biofuel as much an energy source as empowerment for farmers and agri-industries.

5. Outcomes & Outlook: A Roadmap Forward

Summarizing key takeaways:

  • Ethanol blending approaching 20%, with strong growth in 2024–25 and infrastructure hitting the roads across the country.
  • Accelerating growth of biodiesel, but capacity needs to scale manically—from 12 lakh tonnes presently towards 200 lakh by 2030.
  • Satellite activation for CBG scaled through SATAT, with thousands of digesters and billions of cubic metres of fuel opportunity.
  • Feedstock transparency: Increased utilization of waste-based biomass, non-edible oil, and dung reduces land and food security costs.
  • Strategic co-alignment of biofuel with climate objectives, energy security, rural economy empowerment, and circular economy principles.

Delegates departed with greater clarity of plans: pilot schemes, feedstock aggregation models, technology partnerships, financial pathways, and public-private MoUs.

Keywords inserted organically:

  • biofuel adoption
  • biodiesel blending
  • circular economy biofuels

Frequently Asked Questions (FAQ)

1. Why is India promoting ethanol and biodiesel blending so aggressively?

To minimize dependence on fossil fuels, limit greenhouse gas emissions, enhance rural livelihoods, and address ambitious government blending targets (20% ethanol by 2025–26; 5% biodiesel by 2030).

2. What are the primary feedstocks for biofuels?

Ethanol is derived from sugarcane juice and molasses, and increasingly also from agricultural waste (2G ethanol). Feedstocks for biodiesel are non-food oils, used cooking oil, animal fats, and Jatropha. CBG employs biomass and cattle manure.

3. What are the challenges facing the sector?

Main challenges are limited feedstock supply, quality issues (e.g. fuel adulteration), lifecycle emissions issues, and logistics issues in storage and distribution infrastructure.

4. What are the policies and incentives promoting biofuel expansion?

Policy initiatives such as National Biofuel Policy, SATAT, and Pradhan Mantri JI‑VAN Yojana offer tax credits, concessional financing, minimum purchase price, and blending orders to incentivize production and demand.

5. What's next for biofuels in India?

India plans to increase 2G ethanol plants, raise biodiesel production to 200 lakh tonnes/year, increase SATAT-based CBG plants, look at algae-based advanced fuels, and blend biofuels in aviation (SAF) by 2027–2030.

Conclusion

One thing was absolutely clear at the Energy Expo: India's future in biofuels is not just a dream—it's happening. With support from policy, technology deployment, and universal collaboration, biofuels are revolutionizing transportation, agriculture, and energy together.

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