Like previous ones, National Bio-fuel policy -2018 t00 seems to be chasing ambitious targets based on ambiguous plans and questionable technologies.
But pollutions levels and fuel prices are only increasing and our bio-fuels program is becoming irrelevant due to lack of sincere implementation.
What is the state of India’s Bio-fuel program?
India commissioned “National Policy on Bio-fuels” (NPB) to find a solution to air pollution through clean and sustainable fuels.
In addition to this, moving towards energy self-sufficiency, and reducing dependence on crude oil imports, and reducing prices were other aspects.
Unfortunately, precious little has been done so far, and government and almost all the set targets are yet to be met despite timelines having elapsed.
In 2003, “Ethanol Blended Petrol Programme” (EBP) focussed on 5% blending of molasses-based ethanol with petrol, which was enhanced to 10% in 2008.
Thereafter, “National Biodiesel Mission” focused on biodiesel production from Jatropha seeds and targeted a 10% blending with diesel by 2012.
While none of these targets were met, in 2009, the NPB proposed a revised target of 20% blending for ethanol and biodiesel by 2017.
Notably, India currently has a paltry 2-4% blend on an average, which is woefully short of even the initial target of 5%.
Inconsistent supply of domestically produced ethanol is said to be the main reason for the apparent failure of the blending program.
What does the new “National Bio-fuels Policy - 2018” (NBP-18) offer?
NBP-18, repeats the previous pattern of promising the moon, with a road map that has little clarity and conviction.
Octane Count - World Health Organisation (WHO) has already declared 14 Indian cities as among the 20 most polluted in the world.
In this context, the policy is also totally silent on “fuel octane count”, which has direct consequences on vehicular emissions and air quality.
Notably, currently, to mimic octane characteristics in fuel, petrol is blended with imported aromatics which are proven carcinogens.
Untested Technology - NPB-18 has proposed “Viability gap funding scheme” and a “6 year tax incentive” for refiners manufacturing 2G ethanol.
2G is a new untested technology and there isn’t a single plant worldwide that produces 2G ethanol on a commercial scale.
Considering the amount of funds needed and the risk of failure, it is surprising that the government is prioritising 2G ethanol over other aspects.
Additionally, there is total lack of transparency in signing of MoUs with oil marketing companies for the 2G ethanol blending project.
What is the way ahead?
While the government has increasing the price of ethanol (by Rs. 3) to enhance supply, this might not contribute significantly to the blending program.
Rather, merely staying focused in implementing rationally revised blending targets would go a long way.
If necessary, the government could even consider importing ethanol at times to create consistency of supply for blending (like Philippines).
Appropriate and consistent ethanol blending throughout the country will help in reducing the import of expensive and harmful imported aromatics like BTX.
Also, as 2G ethanol is still in the developmental stage, the government would do good to persist with 1G for the time being.
