India creating bio-fuel opportunities opportunity
Student name: Mr Naveen Kumar Rai
Guide: Ms Namish Jha and Dr Priyanka Kaushal
Year of completion: 2012
Host Organisation: European Business and Technology Centre (EBTC), New Delhi
Supervisor (Host Organisation): Mr Monish Verma
Abstract: The bio-fuel industry is growth has been rapidly on a global scale, and both the European Union
and Indian government are basically increasing the production of renewable energy option. The
industry has the potential to improve the overall rural economy, reduction of greenhouse gas
(GHG) emissions and meet the requirements of country’s energy security. The locally produced
bio-energy can help in reducing the dependence on foreign oil and can provide the requirements
for industrial, agricultural, and household uses in urban and rural areas of the country. At the
same time however, it has contributed to increase in food prices and reduction of food availability.
The report looks at the current situation in both countries by keeping on account of the available
technology for conversion and its efficiency, and the bio-fuel resources available in both the
countries. It also helps us to know whether bio-fuels are a sustainable energy option by looking at
their future potential in terms of the amount of energy that needs to be produced in future years and
the area of land required growing the bio-fuel crops. Finally, the environmental and socioeconomic
impacts of the bio-fuel industry are analysed. The two countries want to blend 10%
ethanol with gasoline for vehicle use by 2012. India is aiming for 20% by 2017. In India,
sugarcane molasses is used for ethanol production and the government is also looking into using
Jatropha Curcas seeds for the production of biodiesel on wastelands. Both countries have the
potential of meeting future blending requirements but will require an increase in crop land area.
The use of cellulosic ethanol made from switch grass and agricultural residues is being
investigated but is not yet commercially available. The bio-fuel industry has both positive and
negative socio-economic and environmental aspects. Bio-fuels can lessen the gravity of carbon
from the atmosphere through crop sequestration. However, deforestation and land use change in
response to increased agricultural land requirements may increase GHG emissions over the long
term. Furthermore, for the bio-fuel crops the need of large quantities of water, land and chemicals
are required to cultivate. In terms of social sustainability, there are a lot of employment
opportunities in rural areas and can also raise farm business. However, there are also socioeconomic
impacts through the competition of land required for food crops. The increase in the
prices of the grain is also a threat to food security in many growing nations. The environmental and
social sustainability issues need to be considered by policy makers when implementing the
production of bio-fuels on a local and global scale.
