Guwahati: In India, biofuels have a remarkably promising future.

"With the Assam Ethanol Production Promotion Policy, Assam has attracted 15 private sector investments in the State amounting to over 2350 KLD of Ethanol output daily," said Dr. Lakshmanan S., IAS, Secretary to the Government of Assam Industries, Commerce & PE Department, Assam, and Managing Director of Guwahati Smart City Limited, at the 24th edition of SAFE Annual Convention 2023.

"Out of the 15 projects, 7 have already been shortlisted by a consortium of Oil Manufacturing Companies as vendors/suppliers," he said. The proposed annual capacity of these 7 units is 970 KLD, and with planned investments of Rs. 1154 Cr., they will create 925 direct jobs and almost 4115 indirect jobs.

Oil manufacturing companies have received investment proposals under these pro-active and promotional initiatives from the Department of Industries and Commerce, Government of Assam, with an annual manufacturing capacity of nearly 38 crore litres of ethanol as opposed to the current annual requirement of 15.2 crore litres of ethanol in Assam.  

"We are on the verge of a fundamental change in our energy landscape," stated Lakshmanan.

The Assam government is taking steps to promote the use of biofuels. The installation of ethanol producing facilities inside the state is encouraged by the Assam Ethanol producing Promotion Policy (Amendment), 2022. 

Lakshmanan remarked that as part of this policy, we provide many incentives, including:

a. Up to 30% of the fixed capital investment, with a maximum of INR 15 crore per unit, is eligible for a capital investment subsidy.

b. Working capital loans are eligible for an interest subsidy of 7% for a maximum of INR 70 lakh per year over a five-year period.

c. Tax exemption: 7 years of 100% stamp duty and SGST exemption.

f. Employment cost subsidy: 75% of expenses incurred for contributions to the ESI and EPF program for the first seven years for new units, up to a maximum of INR 1000 per employee per month.

g. Skill development subsidy: INR 25,000 per employee (or ASDM rates, whichever is lower) for skill development subsidy.

India's energy requirements will be met by biofuels in addition to helping us achieve our goals for combating climate change. The organic material contained in plants and other living things is used to make biofuels. These fuels, whether in liquid or gaseous form, hold the key to changing our transportation sector and lowering our dependency on limited fossil fuels.

Since the transportation industry is one in which we can make considerable progress in the conservation of fossil fuels, Lakshmanan said, "our focus today is on their application in transportation."

The required state pre-establishment clearances have already been enabled by the State Single Window agency under the Department of Industries and Commerce. Four of the seven units are prepared to start commercial production this fiscal year. 

The establishment of a joint venture, Assam Bio Refinery Pvt Limited (ABRPL), is yet another remarkable outcome of cooperation between three major stakeholders: Numaligarh Refinery Limited, in partnership with two foreign businesses, Fortum and Chempolis, both of which are based in Finland. Together, they have begun a calculated push into the world of ethanol manufacturing, concentrating on the use of bamboo, a plentiful cellulosic feedstock in the North-Eastern (NE) states of India.

A Memorandum of Understanding (MoU) was also signed on September 23, 2023, between Kesar Petro Products and the Government of Assam. This company is a pioneer in producing methanol from raw bamboo. An estimated 2000 crores will be invested in this strategic cooperation. Additionally, the project is anticipated to significantly contribute to the development of jobs, adding another 1800 indirect jobs and 200 direct permanent jobs to the local economy.

The upcoming biogas plant in Assam, to be built by Redlemon Technologies Private Limited in partnership with Indian Oil Corporation Ltd. at Domora Pathar, in the Sonapur neighborhood of Kamrup Metropolitan District, will begin operations in November 2023. This plant is designed with a significant production capacity, capable of producing 5 tonnes of compressed biogas (CBG) per day. Cattle dung, municipal solid waste, and other appropriate organic matter will largely serve as the raw materials for the manufacturing of CBG. Notably, as the first compressed biogas facility in Northeast India, this biogas plant will represent a significant milestone.

Furthermore, the central government has set a goal of blending 20% ethanol into gasoline by 2025. By attaining 10% ethanol blending in gasoline as of June 2022—well in advance of the deadline of November 2022—the Government of India has exceeded its goal. Financial incentives have been put in place to promote the creation and use of biofuels. The National Policy on Biofuels, 2018, provides a detailed development plan for the industry in India.

In addition, Lakshmanan urged the stakeholders at the convention involved to work together to advance the use of biofuels. Together, he said, we can create a more prosperous and environmentally responsible future for our country, one that will leave a legacy of environmental care.

Moreover, a methanol policy, he said, may be a useful instrument for fostering methanol use and enjoying its numerous advantages, which include lowering the nation's oil import cost, creating jobs, and lowering air pollution. Governments may think about creating and adopting methanol policies to aid in the future switch to renewable energy.

There is no denying that biofuels have benefits over conventional fossil fuels. As a sustainable energy source, biofuels may encourage employment growth and help the agricultural industry, which can stimulate rural economies.

Additionally, Lakshmanan discussed how municipal solid waste (MSW), a significant environmental concern.

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