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NEW DELHI :The recently launched Global Biofuels Alliance will work on the definition and specification of biofuels, and also increase international cooperation through a virtual marketplace, said Union petroleum & natural gas minister Hardeep Singh Puri. The alliance was launched on 9 September with 19 countries and 12 international organizations agreeing to join. In an interview, Puri said India would increase its production of biofuels going ahead.
The recently launched Global Biofuels Alliance will work on the definition and specification of biofuels, and also increase international cooperation through a virtual marketplace, said Union petroleum & natural gas minister Hardeep Singh Puri. The alliance was launched on 9 September with 19 countries and 12 international organizations agreeing to join. In an interview, Puri said India would increase its production of biofuels going ahead.
On the likelihood of a reduction in petrol and diesel prices, the minister said retail fuel prices depend on several factors including the cost of fuel, freight and insurance. He reiterated that non-BJP state governments have not yet lowered value added tax, while the Centre has lowered the excise duty twice in the last two years.
On the likelihood of a reduction in petrol and diesel prices, the minister said retail fuel prices depend on several factors including the cost of fuel, freight and insurance. He reiterated that non-BJP state governments have not yet lowered value added tax, while the Centre has lowered the excise duty twice in the last two years.
Edited excerpts:
In 2018 India banned trading of biofuels. Will the restriction be lifted as the biofuels alliance has been launched?
What the biofuels alliance will do, it will first of all have a definition. If a biofuel is sustainable, if it’s green then you would have to get your definition on that. You’ll have to deal with issues like technical standards, you’ll have to deal with which specification, testing, the whole gamut of issues. What would you have traded in 2018. The ethanol production which started in 2005-06, reached 1.5% in 2014. The total ethanol production and procurement was 380 million litres. Out of 380 million how much one would sell? In 2014, you set a target of 8 years for 10% blending. Today, you have reached 12%, you are procuring 5.62 billion litres of ethanol and 1 billion litres of biodiesel. It totals 6.62 billion litres.
Our assessment was, when the initial 10% blending target was for 8 years till 2022, the target for the next 10% was another 8 years till 2030, and in that we would need 10 billion litres.
What will be the wider impact?
In terms of fossil fuels also, it is said that India is an importer. India is also a major exporter of refined products of petchems, etc. So all I am coming back to say is, when you set up something like the biofuels alliance, you will be not only increasing your production in India, you will be having an international cooperation which we are planning to get done through a virtual marketplace. You will join everybody, join hands. The existing biofuel producers would be enthused. Because today the government has said we are ready, we want to give biofuels a push.
This would accelerate the energy transition journey. This reduces your import bills.
In the nine years India has produced biofuels, India has saved ₹73,000 crore, because of which farmers have been given ₹76,000 crore.
Any other benefits?
If 1% sustainable aviation fuel is mandated, then we would need 140 million litres more. It would also benefit 500,000 farmers. If the mandate is made for 5% blending, it will benefit 700,000 farmers. This is all very clear. This will benefit farmers, and the engine manufacturers. The toxicity would be reduced, and the air will be less polluted.
Will this rule will be changed anytime soon?
Not yet, you don’t need to do it yet, you need to first achieve your 20%.
Saudi Arabia and Russia have so far not joined the alliance...
If your question is will fossil fuel producers oppose it, (it’s) not correct. Today, even if you take an optimistic view your market on biofuels will be a couple of hundred billion dollars, compared to the (far bigger) market on fossil fuel. But my view is that as you go towards enhanced blending...if you have a policy which encourages biofuels you are saving on expenditure and imports.
You are helping the cause of transition, the fight against climate change. And a series of other things happen automatically. If they come around its good. Otherwise, the UAE is already there. A lot of the consuming countries are there.
When do you think retail fuel prices may come down?
The cost of production at the source is a very important factor... I think insurance and freight costs could come down.
By the way, opposition states are not talking about lower petrol, diesel prices as the price is higher in those states by ₹10-11.
There were differences on the definition of green hydrogen. What is your view on the matter?
That doesn’t make much of a difference. Green hydrogen is what you want. A lot of people say till you get green hydrogen, please make do with blue hydrogen, But ultimately, I think we are now very clear.
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