Biofuel alliance can create opportunities worth $500 billion for the G20 nations in the next three years, said the Indian Biogas Association (IBA) calling the biofuel alliance a ‘win-win situation’ for G20 member states and the environment.
According to an IBA study, the biofuel alliance can create $500 billion worth of opportunities, reported PTI. The study stated that biogas can create an opportunity worth $200 billion, assuming the minimum investment needed, as compared to other energy generation sources. Further, it said that biogas or bioenergy can potentially replace fossil fuels altogether, specifically to decarbonise the transport sector.
The study detailed that about $100 billion worth of financial support is needed to act as a trigger for the biofuel industry initially, and about $5 billion is required for every G20 member in the next three years. This initial investment will cause multiplier effects on private investments and biofuel production.
To ensure the success of the biofuel alliance, the association called for the creation of a favourable regulatory environment among the G20 members and sharing of technological advancements. It further noted that it is necessary to enhance global cooperation across G20 member countries.
On the matter, it detailed that the transfer of machinery and equipment among the Group of Twenty must be facilitated to help reduce the dependence on fossil fuels. Additionally, this will help reduce the total import expenses incurred on non-fossil fuels worth billions of dollars in the next three years, and ensure the nations can meet their sustainable development goals.
Further, this cooperation will help provide increase energy security and employment opportunities for the member nations. The study called on the G20 to fulfill it’s role in providing a boost to bioenergy.
Notably, the G20 adopted an action plan in 2016 on renewable energy, which required the members to voluntarily enhance their renewable energy capacity in the total mix. India successfully increased it’s renewable energy capacity share in total energy capacity and reportedly grew at a CAGR of about 22 per cent in the last six years. It managed to increase it’s solar energy almost 20-fold in the last ten years. During the period, solar energy and wind energy witnessed a CAGR of 38 per cent and 30 per cent respectively, the report stated.
According to the data by the Ministry of New and Renewable Energy, the biogas and CBG production at the moment in the country is 1,151 MT per day, and this can increase to nearly 1,750 MT per day by 2025, taking conservative estimates.
The study noted that potent biomass is available in abundant quantity in India, and tapping all of it as the CBG plant’s feedstocks can create an increased production capacity of 170,000 MT of CBG per day. This limit is sufficient to replace one-third of the crude oil imports or the imported LNG capacity by three times.