Biofuels

What are Biofuels?

In simple terms, biofuels are hydrocarbon fuels derived from organic matter—material that is living or was once living—and crucially, produced over a short period of time.
This short renewal cycle clearly distinguishes biofuels from fossil fuels, which take millions of years to form.

Types of Biofuels (Based on Physical State)

• Solid biofuels: Wood, manure
• Liquid biofuels: Bioethanol, Biodiesel
• Gaseous biofuels: Biogas

Because biofuels emit less carbon dioxide (CO₂) than conventional fossil fuels, they can be blended with petrol or diesel, especially in the transport sector.
At present, biofuels account for around 3% of global road transport fuels, but their strategic importance is rising rapidly.

Generations of Biofuels – Evolution Over Time

The idea of biofuels did not remain static. As problems emerged, new generations were developed to address earlier limitations.

First Generation Biofuels

These are produced directly from food crops.

Feedstock:

• Wheat, sugarcane → bioethanol (via fermentation)
• Rapeseed oil → biodiesel

Key Problems

1. Negative net energy gains
   → More energy (and carbon) may be consumed in production than captured during crop growth.
2. Fuel vs Food debate
   → Diverting food crops to fuel threatens food security.
3. Rising food prices
   → Biofuels from food grains have been linked to inflation in food markets.

👉 This generation made the world realise that clean energy cannot come at the cost of hunger.

Second Generation Biofuels (2G Biofuels)

To solve the food security issue, non-food biomass is used.

Feedstock → Wood, Agricultural residues, Organic waste, Food crop waste, Dedicated biomass crops

Why are they better?

• Eliminate the fuel vs food conflict
• Designed to be cost-competitive with fossil fuels
• Life Cycle Assessments (LCA) show positive net energy gains

👉 This generation shifts focus from food crops to waste and residues, aligning well with sustainability goals.

Third Generation Biofuels

Here, science takes a leap forward.

• Key feedstock: Algae
• Algae are:
  • High energy-yielding
  • Fast-growing
  • Entirely renewable

Major Advantages

• Can produce more energy per acre than conventional crops
• Grown on non-arable land and using non-potable water
• Can be converted into → Diesel, Petrol, Jet fuel
• Potentially carbon neutral
  → Carbon absorbed during growth ≈ carbon emitted during combustion

👉 This is why algae-based biofuels are often called the future of bioenergy.

Fourth Generation Biofuels

This is the most advanced and ambitious stage.

Core Objective

Not just to produce energy—but to remove carbon from the atmosphere.

• Biomass absorbs CO₂ while growing
• Fuel is produced using processes similar to 2G biofuels
• CO₂ released during production is captured (e.g., oxy-fuel combustion)

What happens to captured CO₂?

• Stored in:
  • Old oil and gas fields
  • Saline aquifers
    (a process called geo-sequestration)

👉 Result: Carbon-negative fuel
This means more carbon is locked away than emitted, making it superior even to carbon-neutral systems.

Advantages of Biofuels

1. Increased Life of Vehicle Engines

• Compatible with existing engine designs
• Higher cetane number and better lubrication
• Reduced engine wear → lower maintenance → less pollution

2. Lower Carbon Emissions

• Derived from renewable sources
• Less flammable than fossil diesel
• Significantly lower harmful emissions
• Studies indicate up to 65% reduction in greenhouse gases

3. Easy Availability of Raw Material

Biofuels can be sourced from: Manure, Crop residues, Corn, Switchgrass, Soybeans, Algae, Dedicated energy crops

👉 This decentralised sourcing makes biofuels highly scalable.

4. Economic Security

• Reduces dependence on imported fossil fuels
• Cheaper for households and businesses in the long run
• Generates employment across rural and industrial sectors
• Strengthens national energy security

5. Lower Levels of Pollution

• Biodegradable
• Less risk of:
  • Soil contamination
  • Groundwater pollution during transport or storage

6. Cost–Benefit Advantage

• Currently priced similar to gasoline
• Cleaner combustion → lower environmental costs
• With increasing demand and technological maturity, prices are likely to fall further

Disadvantages of Biofuels

1. High Cost of Production and Price Concerns

At present, biofuels are expensive to produce.

• Production requires:
  • Capital-intensive technology
  • Stable feedstock supply
  • Large processing infrastructure
• However, investment and interest in biofuel production remain limited, keeping economies of scale low.

Why is this a concern?

• If biofuel prices rise continuously, they may:
  • Put pressure on consumers
  • Hurt the economy in the same way rising petrol and diesel prices do

👉 Thus, without technological breakthroughs and policy support, biofuels may fail the affordability test.

2. Industrial Pollution during Production

It is true that biofuels emit less CO₂ when burnt compared to fossil fuels.
But UPSC expects you to look at the entire life cycle, not just tailpipe emissions.

• Large-scale biofuel industries:
  • Emit significant industrial emissions
  • Cause localised water pollution
• Production processes can:
  • Offset gains achieved during combustion
  • Increase emissions of NOx (nitrogen oxides)

👉 Unless cleaner and more efficient production technologies are adopted, the net carbon benefit remains limited.

3. Changes in Land Use and Ecological Damage

Biofuel production can promote monoculture farming, which triggers serious environmental consequences.

(a) Loss of Native Vegetation

• Land cleared for biofuel crops destroys:
  • Local habitats
  • Biodiversity
• Native forests are far more efficient at long-term CO₂ removal, because:
  • Carbon remains locked in biomass
  • It is not re-released through burning (as in biofuels)

(b) Carbon Debt

• Clearing forests for agriculture creates a carbon debt
• Studies suggest:
  • It may take up to 500 years to repay this carbon loss through biofuel substitution

👉 This directly contradicts the short-term climate mitigation goals.

(c) Agricultural Pollution

• Converting land into farmland leads to:
  • Heavy fertiliser use
  • Runoff into rivers and groundwater
• Consequences include:
  • Waterway pollution
  • Higher energy use in water treatment plants
  • Further increase in indirect carbon emissions

👉 Thus, land-use change can magnify, not reduce, environmental damage.

4. Poor Performance in Low Temperatures

Biofuels face operational issues in cold climates:

• Attract moisture more easily than fossil diesel
• Encourage microbial growth in fuel systems
• Result:
  • Clogged fuel filters
  • Reduced engine reliability

👉 This limits their widespread adoption in colder regions.

National Policy on Biofuels, 2018

India recognised these challenges and responded through a revised policy framework.

Evolution of Biofuels in India (Chronological Understanding)

• 1975 – India begins studying ethanol–petrol blending
• 2002 – 5% ethanol blending mandated in select states
• 2004 – Programme suspended due to molasses shortage
• 2005 – Revival after increased sugar and molasses production
• 2006 – Biodiesel Purchase Policy announced
• 2007 – Biofuels Mission launched (jatropha, pongamia)
• 2009 – National Biofuel Policy 2009
• 2018 – National Policy on Biofuels 2018 launched (revised policy)

Salient Features of National Policy on Biofuels, 2018

The 2018 policy is a revised version of the 2009 policy and was formulated by the Ministry of New and Renewable Energy.

1. Blending Targets

• 20% ethanol blending in petrol
• 5% biodiesel blending in diesel
• Original target year: 2030
• Current blending levels:
  • Petrol: ~2%
  • Diesel: <0.1%

2. Classification of Biofuels

The policy classifies biofuels into:

1. Basic Biofuels
   • First Generation (1G) bioethanol and biodiesel
2. Advanced Biofuels
   • 2G ethanol
   • Municipal Solid Waste (MSW) to fuels
   • 3G biofuels
   • Bio-CNG

3. Expanded Raw Material Base for Ethanol

To overcome feedstock constraints, the policy allows ethanol production from:

• Sugarcane juice and sugar-rich crops (sugar beet, sweet sorghum)
• Starch-rich crops (corn, cassava)
• Damaged food grains (unfit for human consumption)
• Surplus food grains, with approval from the National Biofuel Coordination Committee

👉 This directly supports the Ethanol Blended Petrol (EBP) Programme by increasing ethanol availability.

4. Definitions under the Policy

• Bioethanol:
  • Produced from sugar, starch, or cellulosic materials
  • Includes agricultural residues, bagasse, algae, industrial waste
• Biodiesel:
  • Derived from non-edible oils, used cooking oil, animal fat, acid oil
• Advanced Biofuels:
  • 2G ethanol
  • Drop-in fuels
  • Algae-based 3G biofuels
  • Bio-CNG, bio-methanol, DME, bio-hydrogen
• Drop-in Fuels:
  • Fuels compatible with existing engines and fuel distribution systems
• Bio-CNG:
  • Purified biogas from dung, crop residues, sewage, food waste
  • Energy content comparable to natural gas

Important Biofuels

1. Bioethanol

What is Bioethanol?

• Bioethanol (ethyl alcohol, C₂H₅OH) is an alcohol-based biofuel
• Produced mainly from sugar and starch crops
• Manufacturing processes:
  • Fermentation (biological route – most common)
  • Reaction of ethylene with steam (industrial route)

Key Properties

• Clear, colourless liquid
• Biodegradable, low toxicity
• Burns to produce CO₂ and water
• High-octane fuel → improves engine performance

👉 Ethanol has replaced lead as an octane enhancer in petrol, which is a major public health gain.

Why is Ethanol Blending Important?

• When blended with petrol:
  • Oxygenates the fuel
  • Ensures more complete combustion
  • Reduces emissions of carbon monoxide and hydrocarbons

👉 This forms the backbone of India’s Ethanol Blended Petrol (EBP) Programme (discussed later)

2. Biobutanol

What is Biobutanol?

• A four-carbon alcohol
• Produced by fermentation of biomass
• Can be produced using existing ethanol production infrastructure

Why is it Promising?

• Properties closer to gasoline
• Some petrol vehicles can use it without engine modification

Limitation

• Energy content is 10–20% lower than gasoline

Major Advantage

• Can reduce carbon emissions by up to 85% compared to gasoline

👉 This makes biobutanol a strong future candidate, though currently limited by economics.

3. Biodiesel

What is Biodiesel?

• Liquid biofuel used in diesel engines
• Derived from: Vegetable oils, Animal fats, Plant oils

Chemically, vegetable oils are triglycerides (fats).

How is Biodiesel Produced?

• Process: Transesterification
• Triglycerides react with alcohol (usually methanol)
• Glycerine is replaced → methyl ester (biodiesel) is formed

Indian Context

• Biodiesel development in India focused on Jatropha
• Jatropha seeds contain ~40% oil
• National Biofuel Policy (2008) aimed to meet 20% diesel demand through plant-based fuels

Biodiesel Blends (BXX)

• BXX → XX = percentage of biodiesel
  • B2, B5, B20, B100
• B100 = pure biodiesel
• Currently → Low blending levels due to availability constraints
• Technically:
  • Up to B20 usable without engine modification
  • In EU & USA, blends from B2 to B100 are available

👉 Blend ratios depend more on supply availability, not technical feasibility.

Advantages of Biodiesel

Technical Advantages

• Excellent lubricating properties
• Higher Cetane Index (56–58) vs diesel (50–52)
• Contains ~11% oxygen → better combustion, less soot
• Ultra-low sulphur content (~0.001%)
• Viscosity similar to diesel → no injector modification

Environmental & Safety Benefits

• Biodegradable and less toxic
• High flash point (>130°C) → safer handling
• Saves 2.2 kg GHG per litre
• Energy positive fuel
  • 1 unit energy input → 3.24 units energy output

Socio-economic Benefits

• No food vs fuel dilemma
• Suitable for India due to:
  • Fallow land
  • Abundant labour
  • Diverse oilseed crops (jatropha, neem, karanj, castor, etc.)

Why Biodiesel is Better than Other Alternative Fuels

• Renewable and sustainable
• No major infrastructure modification needed
• CNG/LNG/LPG:
  • Lower energy per volume
  • Require larger storage
• Ethanol:
  • Renewable but lower calorific value

👉 Transition to biodiesel is smoother and cheaper.

4. Biodiesel from Used Cooking Oil (UCO)

Randhan se Indhan Scheme

• Converts Used Cooking Oil (UCO) into biodiesel

Why UCO is a Problem if Not Managed?

• Repeated heating produces:
  • Total Polar Compounds (TPC)
  • Trans fats and free radicals
• Environmental damage:
  • Clogs municipal sewers
  • Reduces wastewater treatment efficiency
  • Increases chemical oxygen demand (COD)
  • Harms aquatic life by oil coating and oxygen blockage

👉 Using UCO for biodiesel solves both health and environmental problems.

5. Biogas and Compressed Bio-Gas (CBG)

What is Biogas?

• Composition:
  • Methane: 50–65%
  • CO₂: 35–50%
• Produced through anaerobic digestion of biomass

Feedstock

• Cattle dung
• Agricultural residues
• Sugarcane press mud
• Municipal waste

Compressed Bio-Gas (CBG)

• Purified biogas
• Methane content >95%
• Calorific value ≈ 52,000 kJ/kg
• Comparable to CNG

Climate Impact

• Carbon neutral
• No net carbon addition to the atmosphere

Challenge

• Poor segregation and collection of biowaste at household level

SATAT Scheme

• Sustainable Alternative Towards Affordable Transportation (SATAT) launched in 2018
• By the Ministry of Petroleum and Natural Gas
• Implemented with PSU Oil Marketing Companies (e.g., IOCL)

Key Objective

• Promote CBG plants by entrepreneurs
• OMCs procure and sell CBG as automotive and industrial fuel

Benefits

• Reduces air pollution & stubble burning
• Enhances farmer income and rural employment
• Efficient MSW disposal
• Produces Fermented Organic Manure (FOM) → boosts organic farming
• Acts as a buffer against crude oil price volatility

Ethanol Blending Programme in India

What Is Ethanol Blending?

Ethanol blending refers to the process of mixing ethanol—a renewable alcohol-based biofuel—with petrol to create a cleaner and more sustainable fuel for use in internal combustion engines.

Ethanol (C₂H₅OH) is primarily produced through the fermentation of sugars from crops like sugarcane, maize, wheat and can also be produced via petrochemical routes such as ethylene hydration.

Blending ethanol with petrol improves combustion efficiency and lowers certain harmful emissions when compared with fossil fuels alone.

Genesis and Policy Framework

Ethanol Blended Petrol (EBP) Programme

• Launched in 2003 as a pilot initiative to reduce crude oil imports and support farmers.
• Initially piloted with blending at 5% levels, later expanded nationwide.
• The National Policy on Biofuels (2018) — subsequently amended — provided a comprehensive framework for ethanol blending, setting targets for ethanol incorporation in petrol and defining eligible feedstocks.

Key Policy Features

• Target advancement: The original target of 20% ethanol in petrol (E20) by 2030 was advanced to 2025-26 under policy amendments.
• Expanded feedstock base: Policy allows production from sugarcane juice, sugar beet, cassava, damaged/surplus food grains and other biomass, reducing pressure on food supplies.
• Fiscal incentives: GST on ethanol for blending was reduced, and interest subvention schemes and amendments to regulatory Acts were introduced to smooth ethanol supply.
• National Biofuel Coordination Committee (NBCC) oversees feedstock use and surplus declarations.

Progress and Milestones

Achievement of E20 Target Ahead of Schedule

India achieved 20% ethanol blending in petrol by March 2025, five years ahead of the original 2030 deadline. This progress reflects strong policy push, expansion of ethanol production capacity, and coordinated implementation across stakeholders.

Blending Growth Trajectory

• Ethanol blending levels were low (~1.5%) in 2014 but have seen a more than tenfold rise by 2025.
• Ethanol production has increased from 38 crore litres in 2014 to over 660 crore litres in 2025.
• Significant funds have been disbursed to farmers and distilleries, enhancing rural incomes and supporting the agricultural value chain.

Strategic Rationale Behind Ethanol Blending

1. Energy Security

India imports a large share of its crude oil requirement. By substituting a portion of petrol with domestically produced ethanol, the country reduces import dependence, saving foreign exchange and insulating the economy from global oil price volatility. Savings from petrol substitution have crossed substantial amounts over the last decade.

2. Environmental Benefits

• Lower tailpipe emissions: Ethanol contains oxygen molecules that help achieve more complete combustion, reducing carbon monoxide and particulate emissions.
• The shift to ethanol blends contributes to greenhouse gas reduction targets and aligns with India’s climate commitments.

3. Rural Economy and Farmer Support

The programme has created an assured market for sugarcane and other ethanol feedstock producers, resulting in increased incomes for farmers and investments for distilleries. This links energy policy with rural development goals.

Challenges and Headwinds

Despite impressive progress, several structural challenges remain:

1. Feedstock and Supply Constraints

• Ethanol production in India is still heavily reliant on sugarcane and molasses, which are water-intensive crops and subject to climatic variability.
• Increased production capacity and diversification into second-generation (2G) ethanol from lignocellulosic biomass is needed to sustain higher blending targets.

2. Infrastructure and Logistics

• Inadequate storage, distribution and blending infrastructure affects consistent supply, particularly in remote regions.
• Non-uniform implementation of regulatory amendments (e.g., inter-state movement of ethanol) adds to logistical bottlenecks.

3. Vehicle Compatibility and Technical Constraints

• Higher ethanol blends can affect older vehicles’ fuel systems, leading to potential issues with mileage, drivability and engine wear unless vehicles are specifically designed or modified for E20+ fuels.
• Ethanol has a lower energy density compared to petrol, potentially reducing fuel efficiency and increasing perceived running costs for consumers.

4. Stakeholder Concerns

Industry and automakers have voiced concerns regarding:

• Reduced margins for distillers converting molasses to ethanol
• Need for clarity on enhancement of blending ratios beyond E20
• Complexities in aligning agriculture and automotive sectors with biofuel policy objectives.

Emerging Issues and Future Directions

Towards Higher Blends

• Government discussions include potentially transitioning to higher ethanol blends (E27, E30 or beyond) in the medium term, subject to stakeholder consensus and vehicle readiness.

Second-Generation Ethanol

• Investment in 2G ethanol production using agricultural residues and waste biomass (e.g., sugarcane bagasse) is crucial for long-term sustainable ethanol supply without pressuring food and water resources.

Policy Integration

• Synchronising ethanol blending with policies like PM JI-VAN Yojana, bioenergy missions, and renewable energy targets will amplify benefits across climate, agriculture and energy sectors.

Conclusion: A Strategic Policy with Multidimensional Impact

India’s Ethanol Blending Programme exemplifies a market-driven, policy-oriented approach to decarbonising the transport sector, enhancing energy security, and supporting rural livelihoods. The achievement of the 20% blending target well ahead of schedule reflects strong political will and collaborative implementation. Going forward, technological innovation, flexible policy frameworks, and robust infrastructure expansion will be key to addressing challenges, enabling higher blends, and ensuring ethanol’s role as a strategic pillar in India’s sustainable energy transition.