Page 44 - Policy Economic Report - October 2024

POLICY AND ECONOMIC REPORT
OIL & GAS MARKET

Key Policy developments/Significant news in Energy sector

Government’s Support Fuels Transformation of Bioenergy Ecosystem in India: Petroleum Minister
Hardeep Singh Puri

At the 12th Edition of the CII Bioenergy Summit, Shri Hardeep Singh Puri, Minister of Petroleum and
Natural Gas, underscored India's remarkable progress in bioenergy, aligning with the summit's theme,
“Fuelling the Future - Securing India’s Green Growth Goals.” Shri Puri highlighted the success of India's
ethanol blending initiative, which has seen the blending percentage rise from 1.53% in 2014 to a projected
15% by 2024. Encouraged by these results, the government has advanced its target for 20% blending to
2025, reinforcing its commitment to sustainable energy. He further revealed that discussions have already
started to develop a roadmap for the future, post the attainment of the 20% blending target. This
roadmap will guide the country’s next steps in its pursuit of energy sustainability and self-reliance.

Shri Hardeep Singh Puri commended Prime Minister Shri Narendra Modi's leadership in transforming
India’s bioenergy ecosystem since 2014. He emphasized the crucial role of market dynamics, technology
advancements, and supportive government policies in driving this transformation and enhancing
sustainability in the energy sector.

The Minister shared impressive outcomes of the ethanol program, revealing that from 2014 to August
2024, it has generated foreign exchange savings of ?1,06,072 crore, reduced CO2 emissions by 544 lakh
metric tons, and achieved crude oil substitution of 181 lakh metric tons. Payments to distillers by OMCs
have reached ?1,50,097 crore. Furthermore, he said, farmers have been paid ?90,059 crore, empowering
them from being Annadata to being Urjadata. Additionally, he mentioned about the government's
ambitious targets for Sustainable Aviation Fuel (SAF), aiming for 1% blending in 2027 and 2% in 2028,
positioning India as a leader in bio-mobility.

At the event, Shri Hardeep Singh Puri emphasized India’s robust economic growth, predicting it will drive
25% of global energy demand over the next two decades. He noted that bioenergy will be crucial in
meeting this demand while advancing climate goals and rural development. Currently valued at US$44
billion (as per Wood Mckenzie), the Minister said that the bioenergy market is projected to grow to
US$125 billion by 2050. If global net-zero targets are achieved, this figure could surge to US$500 billion.

Underscoring India’s agricultural strength and its vast biomass potential as critical elements in the
country’s transition to clean energy, Shri Puri said that the country recognized as an agricultural
powerhouse, is a leading producer of rice, wheat, cotton, sugar, and various horticultural and dairy
products. He said that the country has more than 750 million metric tonnes of available biomass, with
about two-thirds being used for domestic purposes such as cattle feed and compost fertilizer. According
to a report by PWC, he noted, 32% of India’s total primary energy consumption is derived from biomass,
and over 70% of Indians rely on it for energy across the value chain.

India’s position as a major biofuel producer and consumer has been strengthened through coordinated
policies, political support, and abundant feedstocks, said Shri Hardeep Singh Puri. He noted that the

October 2024 Page | 43