National Policy on Biofuels

National Policy on Biofuels

Subject: Environment

Context: The Minister of State for Petroleum and Natural Gas, Shri Rameswar Teli in a written reply to a question in the Lok Sabha today informed that the National Policy on Bio-fuels, 2018 envisages creation of a National Biomass Repository by conducting appraisal of biomass across the Country.

Concept:

• Technology Information, Forecasting and Assessment Council (TIFAC), an autonomous organisation under Department of Science and Technology (DST) has published a study report titled ‘Estimation of Surplus Crop Residue in India for Biofuel Production’ jointly with Indian Agriculture Research Institute (IARI).
• TIFAC along with National Remote Sensing Centre (NRSC), Hyderabad has carried out an estimation of residual biomass and its energy potential on PAN India basis on a further disaggregated at a level of 1 square kilometre through spatial information system.
• This has focussed on four major crops namely rice, wheat, sugarcane and cotton.
• The Government has allowed procurement of ethanol produced from other non-food feedstocks besides molasses, like cellulosic and lignocellulosic materials including petrochemical route.
• Oil PSUs have entered into Memorandum of Understanding with State Governments and Technology Providers for 2G ethanol bio-refineries.Oil Public Sector Undertakings (PSUs) have planned to set up second generation (2G) ethanol bio-refineries to augment ethanol supplies for Ethanol Blended Petrol (EBP) Programme at Panipat in Haryana, Bathinda in Punjab, Bargarh in Odisha, Numaligarh  in Assam and  Davangere  in Karnataka.
• Government has approved financial support of Rs. 150 crore each to 4 commercial projects at Bathinda (Punjab) of HPCL, Panipat (Haryana) of IOCL, Bargarh (Odisha) of BPCL and Numaligarh (Assam) of NRL &Rs15 crore to 1 demo plant at Panipat (Haryana) of IOCL under the Pradhan Mantri JI-VAN Yojana

National Policy on Biofuels

• The new National Policy on Biofuels had a target of 20 per cent blending of ethanol in petrol and 5 per cent blending of biodiesel in diesel by 2030.
• This was to be achieved by increasing production using second generation bio-refineries and developing new feedstock for biofuels. It allowed the production of ethanol from damaged food grains like wheat and broken rice, which are unfit for human consumption.

• The new policy allowed the use of excess food grain for ethanol in a bounty crop year, so long as the surplus is endorsed by the Union Ministry of Agriculture.
• The approval for this is to be given by the National Biofuel Coordination Committee, chaired by the Union Minister Petroleum and Natural Gas.
• It includes representatives from 14 other central departments.

Ethanol blending Programme

• The Ministry of Petroleum & Natural Gas (MoP & NG) vide its notification dated 20th September, 2006 directed the Oil Marketing Companies (OMCs) to sell 5% Ethanol Blended Petrol subject to commercial viability as per Bureau of Indian Standards specifications in notified 20 States and 4 UTs with effect from 1st November, 2006.
• At present, this programme has been extended to whole of India except Union Territories of Andaman Nicobar and Lakshadweep islands with effect from 01st April, 2019 wherein OMCs sell petrol blended with ethanol up to 10%.