India in talks with Germany for technology collaborations in biofuel sector, says IBA’s Gaurav Kedia

India is looking at technologies in the biogas sector which would be adaptable for the country

India is working to accelerate collaborations with Germany for advanced technologies in the biofuel sector, Gaurav Kedia, Chairman of Indian Biogas Association (IBA) told Moneycontrol.

The government is looking at technologies from Germany to process feedstock which is not sugar-based such as paddy straw and municipal solid waste, said Kedia.

“Raw material is always a big question mark. India is looking at proven technologies from Germany that could help process raw materials such as paddy straw, Napier grass, and municipal solid waste,” said Kedia.

The Indian government has been looking at developing infrastructure in the country for biofuel production from non-food crops or sugar-based crops to tackle the issue of energy security. Other than sugar crops, the industry is looking at feedstock such as agricultural waste and other solid waste for biofuel production.

In December 2023, the government banned the production of ethanol from sugarcane juice to ensure adequate availability of sugar for domestic consumption and to keep prices in check. The decision was, however, later reversed.

Cost cutting solutions

The IBA head added that India, while working on collaborations, is not looking for funds but at technologies in the biogas sector which would be adaptable for the country and help in optimising costs.

“India is interested in bringing the right technologies from Germany for the biofuel industry and also bringing the know-how so that we can start manufacturing such equipment in India. The idea behind the talks with Germany is to optimise costs and update technologies as per the Indian scenario,” he said.

Kedia said Union Minister of Petroleum and Natural Gas Hardeep Singh Puri had met the CEO of the German Biogas Association in November 2023 to advance talks between the countries. The Ministry of Petroleum and Natural Gas has been at the forefront of handling decisions related to biofuels and ethanol blending in petrol and diesel.

“The purpose was to catalyse talks between the two countries in the biogas sector,” said Kedia.

Germany is a world leader in producing biogas from stubble and therefore India is working to adopt technologies from the country. For India, these German technologies would help in tackling two issues, one of air pollution from stubble burning and other energy-security.

Increased focus on biofuels

Since India is dependent on imports for over 85 percent of its crude oil requirements and around 50 percent of its natural gas needs, it becomes important for the country to look at ways to reduce its reliance on imports.

To boost the biofuels industry, Finance Minister Niramala Sitharaman while presenting the interim Budget had said that the government would provide financial assistance for the procurement of machinery to help in biomass collection. She has, however, not disclosed the allocation as of now.

In a similar move, the government in November had mandated the blending of compressed biogas in compressed natural gas (CNG) and piped natural gas (PNG) in a phased manner. CBG blending obligation (CBO) would be voluntary till the financial year 2024-25 (FY25), while mandatory blending obligation would start from FY26. CBO will be kept as 1 percent, 3 percent and 4 percent of total CNG/PNG consumption for FY26, FY27 and FY28, respectively.

Global Biofuel Alliance

Meanwhile, with the objective to facilitate the adoption of biofuels, India had launched the Global Biofuel Alliance on September 9 under its G20 Presidency.

Nineteen countries including Brazil, the US, Canada and Italy, and 12 international organisations have joined the GBA, which is expected to support the development of biofuels by offering capacity building exercises across the value chain, providing technical support for national programmes and promoting the sharing of policy lessons.