G20 Summit: What Is Global Biofuel Alliance Launched By PM Narendra Modi

The Global Biofuels Alliance, proposed by India, follows a model similar to the International Solar Alliance (ISA) initiated by New Delhi and Paris in 2015.

Speaking at the G20 Summit session on 'One Earth', Prime Minister Narendra Modi urged G20 nations to join the Global Biofuel Alliance.

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Prime Minister Narendra Modi on Saturday launched the Global Biofuel Alliance that facilitates cooperation and promotes the use of biofuels, including in the transport sector. Speaking at the G20 Summit session on 'One Earth', Prime Minister Narendra Modi urged G20 nations to join the initiative and take ethanol blending with petrol globally to 20 per cent.

"Today, the need of the hour is that all countries should work together in the field of fuel blending. Our proposal is to take an initiative at a global-level to take ethanol blending in petrol up to 20 per cent," he said.

"Or alternatively, we could work on developing another blending mix for the greater global good, one that ensures a stable energy supply while also contributing to climate security," PM Modi said at the session. 

What Is Global Biofuels Alliance?

The Global Biofuels Alliance, proposed by India, follows a model similar to the International Solar Alliance (ISA) initiated by New Delhi and Paris in 2015. The ISA's goal was to make clean and affordable solar energy accessible to all. Earlier this month, Prime Minister Narendra Modi, in an interview with PTI, said that India's proposition for a global alliance focused on biofuels among G20 member nations would facilitate the rapid adoption of sustainable biofuels, aligning with the worldwide transition toward cleaner energy sources.

"Such alliances are aimed at creating options for developing countries to advance their energy transitions," PM said.

"Biofuels are also important from the perspective of a circular economy. Markets, trade, technology, and policy – all aspects of international cooperation are crucial in creating such opportunities," Modi had said.

Biofuel, a renewable energy source derived from biomass, is gaining importance in India's energy landscape. India, which currently imports more than 85 per cent of its crude oil, is progressively expanding its capacity to produce fuel from various sources, including crop residue, plant waste, and municipal solid waste, according to a PTI report. 

The report also said that India is on track to double the blending of ethanol, sourced from sugarcane and agricultural waste, to 20 per cent in petrol by 2025. Additionally, numerous compressed biogas (CBG) plants are being established.

The primary objective of the Global Biofuels Alliance is to promote cooperation and enhance the utilisation of sustainable biofuels, particularly in the transportation sector. Its key focus areas include bolstering biofuel markets, facilitating global biofuel trade, sharing valuable policy insights, and providing technical support for national biofuel initiatives worldwide.

India's Expectation From Biofuel

Gaurav Kedia, Chairman of the Indian Biogas Association (IBA), in an interview with Moneycontrol, said that they expect India to set up 5,000 compressed biogas plants (CBG) by the year 2030. The Global Biofuels Alliance (GBA) could play a pivotal role in advancing this target and offering guidance in the implementation of these plants.

Kedia further said that the government has received approximately 4,090 letters of intent (LoI) from various entities interested in establishing CBG plants across India. Prominent companies like Reliance Industries Limited (RIL), the Adani Group, and other energy public sector undertakings (PSUs) are actively planning to initiate CBG plant projects in the country.

Reliance, now India's leading bio-energy producer, has ambitious plans to set up 100 CBG plants within the next five years, with a focus on utilizing 5.5 million tonnes of agro-residue and organic waste. Additionally, Indian Oil, HPCL, GAIL, and other major oil companies are also actively involved in the CBG segment.