Conflicts Push India’s Biofuel, Low-Carbon Fertiliser Revolution

April 28, 2026

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by Pallab Bhattacharyya/Aasha Khosa (AWAZ/The Voice) ... In this crucible, biofuels, renewable gases, green hydrogen, and low-carbon fertilisers have shifted from niche environmental tools to strategic imperatives for energy sovereignty and climate resilience. India, with its vast agricultural diversity, abundant solar and wind resources, and policy momentum, stands uniquely positioned to lead this transformation while turning crisis into opportunity.

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India, one of the world’s largest urea consumers, imports a good part of its fertiliser needs and relies heavily on imported natural gas for domestic production, making roughly 20–25% of its supply chain exposed to these chokepoints. The absence of strategic fertiliser stockpiles akin to petroleum reserves amplifies the risk, potentially depressing application rates and jeopardising food security for 1.5 billion people. Yet, these very disruptions are catalysing a paradigm shift toward locally sourced, environment-friendly options that decouple economies from volatile foreign supplies.

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However, alternatives can be produced domestically and sustainably using biosolutions. Currently, India boasts a surplus bio-ethanol capacity of 7–8 billion liters, which can be harnessed for innovative applications.

Enzymes and microorganisms can transform local biomass, crops, and agricultural residues into fuels, chemicals, and materials that are viable substitutes for fossil-based products.

With the right technologies and policies, and with current excess production capacity, ethanol has the potential for up to 8 per cent commercial LPG substitution. Sustainable aviation fuels, biodiesel, and biochemicals are transitioning from aspiration to reality, with infrastructure already advancing.

Biofuels have emerged as a cornerstone of this response, offering “drop-in” replacements for petroleum fuels with significantly lower lifecycle greenhouse gas emissions—often 50–80% less when produced sustainably. Global liquid biofuel production has grown by about 50% over the past decade, led by the United States (primarily corn ethanol) and Brazil (sugarcane ethanol and soy biodiesel), which together account for roughly two-thirds of output. Brazil, in particular, derives around 22% of its transport energy from biofuels, supported by long-standing blending mandates, tax incentives, and flex-fuel infrastructure—a model born from the 1970s oil crises that has saved billions in imports and avoided vast emissions.

The United States reinforces this through its Renewable Fuel Standard, which sets ambitious volume obligations and promotes advanced biofuels through credits, and through the Inflation Reduction Act.

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Nordic countries like Sweden, Finland, and Denmark have integrated bioenergy to exceed 20% of primary energy supply, complementing renewables with rigorous sustainability criteria that cap food-based fuels and prioritise waste and residues. Even China and other emerging players have accelerated production ....

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India has moved decisively in this direction, leveraging its policy architecture to accelerate the transition. The National Policy on Biofuels (2018), updated in 2022, advanced the 20% ethanol blending target (E20) to 2025–26, expanding eligible feedstocks to include molasses, sugarcane juice, damaged grains, and non-edible oils. Blending rates have climbed steadily, reaching nearly 20% in mid-2025, delivering substantial foreign exchange savings and additional income to sugarcane and grain farmers.

Complementary initiatives like the SATAT (Sustainable Alternative Towards Affordable Transportation) scheme promote compressed biogas (CBG) from agricultural residues, cattle dung, and municipal waste, with offtake guarantees from oil marketing companies. This not only displaces imported natural gas but also tackles stubble burning, air pollution, and waste management—turning rural liabilities into assets.

Advanced second-generation ethanol plants using crop residues are being scaled under schemes like Pradhan Mantri JI-VAN (Jaiv- VatavaranAnukoolfasalawaseshNivaran), prioritising non-food feedstocks to avoid competition with food security. India’s participation in the Global Biofuel Alliance further amplifies these efforts through international collaboration on standards and technology.

Parallel innovation in low-carbon gas and fertiliser pathways offers even deeper resilience.

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Green ammonia, produced via electrolysis of water using renewable electricity to generate hydrogen, followed by synthesis with nitrogen, slashes emissions to near zero and stabilises costs through long-term power purchase agreements.

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Brazil’s decades-long biofuel commitment has not only buffered oil shocks but also fostered rural development.

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Morocco is emerging as a green hydrogen and ammonia exporter, leveraging solar and wind for Power-to-X projects.

In India, the National Green Hydrogen Mission targets 5 million tonnes of green hydrogen annually by 2030, with auctions and offtake agreements already linking refineries, fertiliser plants, and steel to lower-carbon pathways.

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By prioritising residues and wastes for biofuels and CBG, India safeguards food security while generating rural income, creating jobs, and cutting imports.

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For India, the convergence of energy security, climate goals, and rural prosperity offers a historic opportunity to pioneer a resilient, low-carbon future. READ MORE

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Excerpt from IANS/Hi India: The government has proposed widening the definition of automotive fuels to include higher blends of ethanol and biodiesel, as part of efforts to promote cleaner and more diversified energy use in the transport sector, according to a draft notification issued by the Ministry of Road Transport and Highways.

The draft seeks amendments to the Central Motor Vehicles Rules, 1989, to enable the use of ethanol blends up to 100 per cent (E100) and 85 per cent (E85), along with biodiesel blends up to 100 per cent (B100).

The notification has proposed changes to hydrogen-CNG terminology, replacing ‘Hydrogen + CN’ with ‘Hydrogen + CNG’, along with other technical corrections in emission tables.

At present, vehicles manufactured after April 2023 are compliant with E20 fuel and are capable of running on ethanol blends of up to 20 per cent, with certain models engineered to support higher blends.

In a related move, the draft has proposed increasing the permissible gross vehicle weight for certain categories to 3,500 kg from the existing 3,000 kg.

The draft has been issued for public consultation, with the government inviting objections and suggestions within 30 days before finalising the amendments.

According to officials, the changes aimed at aligning regulatory frameworks with evolving fuel technologies and supporting India’s long-term goal of reducing dependence on fossil fuel imports. Union Minister of Road Transport and Highways, Nitin Gadkari, recently underlined the need to scale up ethanol adoption, stating that India should work towards achieving 100 per cent ethanol blending in the future to strengthen energy self-reliance amid global supply uncertainties. Notably, countries such as Brazil have already adopted higher ethanol blending levels, offering a potential model for India as it expands its biofuel ecosystem.

Separately, the government has also taken steps to introduce biofuels in the aviation sector. The Ministry of Petroleum and Natural Gas has amended norms to allow blending of ethanol in aviation turbine fuel (ATF). The move is expected to help lower crude oil import dependence and reduce carbon emissions from the aviation sector.In addition, India has set indicative targets for SAF blending, aiming for 1 per cent by 2027, 2 per cent by 2028, and 5 per cent by 2030, in line with global aviation sustainability goals.–IANSag/na READ MORE

Excerpt from The Pioneer: For India, which imports 87 per cent of its crude oil, much of it from this region: The lesson is particularly significant. When you add to that 60 per cent of its LPG imports, every kilogram of potash used for agriculture, and nearly half the petrochemicals found in everyday products like detergents, plastics, and solvents, the extent of India’s exposure becomes unmistakably clear.

This dependence on far-flung, often volatile supply routes is a strategic vulnerability that no amount of diplomatic maneuvering can fully safeguard. India has already demonstrated its capacity to reduce import reliance, as seen in the Ethanol Blended Petrol Programme.

Remarkably, the country achieved 20 per cent blending five years ahead of schedule, saving Rs 1,44,000 crores in foreign exchange, paying Rs 1,25,000 crores directly to farmers, and generating about 165,000 jobs. This success was powered by strong political will and robust policy measures that encouraged private sector investment in new ethanol production facilities.

Collaboration among engineering companies, biosolution technology providers, academia, and regulatory bodies fostered an ecosystem that built trust and enabled transformative change. This model, proven to work, is ready to be scaled up. Fossil dependence is often seen as a fuel issue, but it is much more pervasive. READ MORE

Excerpt from Indian Express: Simply put, ethanol derived from sugarcane, maize and rice is today cheaper than petrol refined from crude oil. It strengthens the case to incentivise the rollout of flex-fuel vehicles along with separate dispensing units in fuel stations for higher ethanol blends.

That said, global crude prices may not sustain at $110-per-barrel levels beyond a time. The ethanol industry must prioritise long-term cost competitiveness, which means raising cane and grain yields per acre and breeding varieties with higher sugar and starch recoveries. Nor should it expect the government to make available subsidised rice from the Food Corporation of India’s godowns. Also, it’s not desirable to produce ethanol from water-guzzling rice. More effort is required to promote sweet sorghum, bajra and other millets as sustainable feedstocks for ethanol production, offering fermentation efficiencies comparable to maize or sugarcane. There’s no doubt, however, that the current oil shock is an inflection point for biofuels — and for Indian policymakers to think beyond incremental ethanol blending. The time for flex fuels has, indeed, arrived. READ MORE

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