In 2023, India is expected to produce 200 million liters of biodiesel, up from 185 million liters in 2022. The USDA Foreign Agricultural Service estimates that consumption will increase slightly to 190 million liters in 2023.
India’s biofuel generation in 2023 is expected to see significant growth, driven by various government initiatives and policies. The National Biofuels Policy of India, amended in May 2022, aims to expedite the pace towards blending goals and increase domestic ethanol output from sugarcane and multi-feed stocks. The average ethanol blending rate with petroleum for the calendar year 2023 is estimated to reach 11.5 percent.
According to projections by the International Energy Agency (IEA), India is expected to overtake China to become the third-largest producer of ethanol by 2023. In terms of biodiesel, the production volume in India was 185 million liters in 2022 and is forecasted to increase to 200 million liters in 2023.
India’s Bio-fuel generation in 2023
According to the Ministry of New and Renewable Energy (MNRE), India has embarked on an ambitious energy transition journey with a target of fifty percent cumulative electric power installed electricity capacity from non-fossil fuel-based energy resources by 2030 and achieving net zero by 2070.
We must optimally utilise domestically available Renewable Energy alternatives to attain these ambitious Renewable Energy targets and achieve self-reliance in the energy sector.
Estimates suggest that India’s average ethanol blending rate with petroleum in 2023 will be 11.5 percent. In May 2022, India amended the National Biofuels Policy to increase the domestic ethanol output from sugarcane and multi-feed stocks. The aim is to achieve a 20% blending ratio by 2025-26.
The average level of biodiesel blending in India has reached 0.10%. The target is to reach 5% blending by 2030.
The India biodiesel market size reached US$ 383.4 Million in 2022. IMARC Group expects the market to reach US$ 643.0 Million by 2028, exhibiting a growth rate (CAGR) of 9.36% during 2023-2028.
The Indian government has also set forward-looking goals to manage emissions as a step towards decarbonisation. In 2015, India submitted its first Nationally Determined Contribution (NDC) to the United Nations Framework Convention on Climate Change (UNFCCC) pledging a 33-35 percent reduction in the emissions intensity of its economy by 2030, compared to the 2005 levels.
As per the updated NDC, India now stands committed to reducing emissions intensity of its GDP by 45 percent by 2030, from the 2005 level.
Production volume of biodiesel in India from 2010 to 2023 (in million liters)
| Year | Production Volume (in million liters) |
|---|---|
| 2010 | 100 |
| 2011 | 111 |
| 2012 | 126 |
| 2013 | 132 |
| 2014 | 138 |
| 2015 | 152 |
| 2016 | 158 |
| 2017 | 170 |
| 2018 | 185 |
| 2019 | 230 |
| 2020 | 200 |
| 2021 | 180 |
| 2022 | 185 |
| 2023* | 200 |
The Ministry of New and Renewable Energy (MNRE) has notified the National Bioenergy Programme for a period 01.04.2021 to 31.03.2026 with an outlay of Rs.858 crore under Phase-I. The National Bioenergy Programme will comprise the following sub-schemes: Waste to Energy Programme, Biomass Programme, and Biogas Programme.
In 2022, India produced 185 million liters of biodiesel fuel, and forecasts predict this will increase to 200 million liters by 20232. The International Energy Agency (IEA) projects that by 20233, India will overtake China to become the third-largest producer of ethanol.
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