India Biofuels Market Trends

• Improving Ethanol Economy: There is a clear growth trend towards an improving ethanol economy in India. Ethanol production capacity has rapidly increased from less than 2000 Milllion litres per annum in 2013 to a projected 10,000 million litres by 2025. More than 50 new distilleries are expected to be setup for grain/molasses-based ethanol production. OMCs are investing in supply infrastructure for ethanol blending. Higher ethanol blends like E15 and E20 will be introduced in more locations. The ethanol economy ecosystem is expanding enabling usage.
• Second-Generation Biofuels: Second-generation biofuels from agricultural wastes and residues are gaining traction globally and in India. Most of the new ethanol bio-refineries being established are based on lignocellulosic biomass feedstocks like rice straw, bagasse, wood biomass, etc. Biodiesel production from non-edible oils is also rising. Several technology providers are offering process technologies for 2G biofuels tailored for Indian biomass sources. 2G biofuels are emerging as a viable sustainable option.
• Biogas Growth: Biogas is witnessing increasing adoption driven by India's focus on waste management and organic fertilizers under the SATAT initiative. Biogas is produced from agricultural residues, cattle dung, municipal solid waste, etc. via anaerobic digestion. Biogas is used for electricity generation and as a transportation fuel in the form of bio-CNG. The number of biogas plants being set up is rising driven by facilitative policies and the supply of wet organic wastes. Biogas holds promising growth prospects.
• Emerging New Feedstocks: Research is ongoing to develop and commercialize new advanced biofuel feedstocks with better efficiency and sustainability. Algae biofuel development is gaining attention given its higher yield potential while also recycling CO2. Biofuels from municipal solid wastes and plastics using techniques like pyrolysis are also being explored. Agricultural processing wastes like rice bran, cashew apple, etc. also hold potential for biofuel conversion. Feedstock diversification will support the continued evolution of biofuels.

Figure. India Biofuels Market Share (%), By Region