The National Policy on Biofuels is here and what is the next step?
The National Policy on Biofuels got the final nod from the Union Cabinet. The Policy, which is considered as a crucial step in the sector, categorises biofuels as Basic Biofuels or First Generation Biofuels (1G), which include bioethanol and biodiesel, and Advanced Biofuels or Second Generation (2G), which constitute ethanol, Municipal Solid Waste (MSW) and drop-in fuels, and Third Generation (3G) biofuels.
The Policy expands the scope of raw material for ethanol production by allowing use of sugarcane juice, sugar beet, sweet sorghum, corn, cassava, damaged food grains like wheat, broken rice, and rotten potatoes for ethanol production. The Policy also allows use of surplus food grains for the production of ethanol, a move beneficial for farmers who don’t get an appropriate price for their produce during the surplus production phase.
With a thrust on Advanced Biofuels, the Policy recommends a viability gap funding scheme for 2G ethanol Bio refineries of Rs. 5,000 crore in 6 years in addition to additional tax incentives, higher purchase price as compared to 1G biofuels. The Policy encourages setting up of supply chain mechanisms for biodiesel production from non-edible oilseeds, Used Cooking Oil, short gestation crops.
By adopting 2G technologies, agricultural residues and wastes which otherwise are burnt by the farmers can be converted to ethanol and can fetch a price for these waste. Earlier, in order to promote biofuels in the country, a National Policy on Biofuels was made by the Ministry of New and Renewable Energy during the year 2009. Biofuels programme in India has been slowed down due to the non-availability of domestic feedstock for biofuel production.
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