India to see $67 bn in energy investments in next 5-6 years: PM

Subject: Geography

Section: Human and economic geo

Context:

Prime Minister announced India’s aim to increase the share of domestic gas in its primary energy mix from the current 6% to 15% as a move towards more environmentally friendly energy sources.

Details:

This initiative is expected to attract an investment of about $67 billion over the next five to six years.
India’s energy demand is projected to double by 2045, and in anticipation, the country is focusing on developing affordable and sustainable energy.
There is an ‘unprecedented infrastructure push’ with ₹11 lakh crore allocated for it in the interim budget, underlining the government’s commitment to enhancing India’s energy infrastructure.

‘Big part for energy’:

A significant portion of the allocated ₹11 lakh crore will be invested in the energy sector, supporting the development of infrastructure in railways, roadways, waterways, airways, and housing, all of which will increase energy demand and aid in expanding India’s energy capacity.
Additionally, he highlighted the Global Biofuel Alliance, introduced during the G20 Summit in India, which has garnered support from 22 nations and 12 international organizations.
This alliance aims to promote the use of biofuels, potentially unlocking economic opportunities valued at $500 billion.

About Global Biofuels Alliance:

It is an India-led Initiative to develop an alliance of Governments, International organisations and Industry to facilitate the adoption of biofuels.
A total of 19 countries and 12 international organisations have so far agreed to join the alliance, including both G20 members and non-member countries.
India, Brazil and the US is the founding members of the alliance.
This Alliance will be aimed at facilitating cooperation and intensifying the use of sustainable biofuels, including in the transportation sector.
Significance of the alliance
- It will place emphasis on strengthening markets, facilitating global biofuels trade, developing concrete policy lesson-sharing and providing technical support for national biofuels programs worldwide.
- It will support worldwide development and deployment of sustainable biofuels by offering capacity-building exercises across the value chain, technical support for national programs and promoting policy lessons-sharing.
- It will facilitate mobilising a virtual marketplace to assist industries, countries, ecosystem players and key stakeholders in mapping demand and supply, as well as connecting technology providers to end users.
- It will also facilitate the development, adoption and implementation of internationally recognised standards, codes, sustainability principles and regulations to incentivise biofuels adoption and trade.

Ethanol blending push:

Ethanol blending in petrol has increased from 1.5% in 2014 to 12% in 2023, resulting in a reduction of approximately 42 million metric tons in carbon emissions.
The government aims to achieve a 20% ethanol blending rate in petrol by 2025.
The government has established 5,000 compressed biogas plants to further enhance India’s energy sustainability.

Ethanol Blended Petrol (EBP) Programme:

The Ethanol Blended Petrol Programme was launched in 2003 with an aim to promote the use of renewable and environmentally friendly fuels and reduce India’s import dependence for energy security.
Starting with 5% blending, the government has set a target of 10% ethanol blending by 2022 and 20% blending (E20) by 2030.
The programme is implemented in accordance with the National Policy on Biofuels.
Under this programme, oil marketing companies (OMCs) will procure ethanol from domestic sources at prices fixed by the government.
Till 2018, only sugarcane was used to derive ethanol. Now, the government has extended the ambit of the scheme to include foodgrains like maize, bajra, fruit and vegetable waste, etc. to produce ethanol.

Generations of biofuels

First generation biofuels – First-generation biofuels are made from sugar, starch, vegetable oil, or animal fats using conventional technology. Common first-generation biofuels include Bio-alcohols, Biodiesel, Vegetable oil, Bio-ethers, Biogas.
Second generation biofuels – These are produced from non-food crops, such as cellulosic biofuels and waste biomass (stalks of wheat and corn, and wood). Examples include advanced biofuels like bio-hydrogen, bio-methanol.
Third generation biofuels – These are produced from micro-organisms like algae.
Four Generation Bio-fuels-It uses genetically modified (GM) algae to enhance biofuel production.