Indian Economy News

Global Biofuels Alliance will strengthen India's position globally: Union Minister Mr. Hardeep Puri

  • IBEF
  • September 12, 2023

According to the Union Minister of Petroleum and Natural Gas and Housing and Urban Affairs Mr. Hardeep Singh Puri, India will lead the world on a new biofuels path through the Global Biofuels Alliance. It will help in improving India's position globally as a result of the G20 presidency, he said.

It is an India-led Initiative to develop to facilitate the adoption of biofuels.

Sharing a post on the social media site ‘X’ (formerly known as Twitter), the Minister said that this initiative will definitely reduce the dependence on petrol and diesel across the world.

On the sidelines of the G20 Summit in New Delhi, Prime Minister Mr. Narendra Modi announced the launch of the Global Biofuels Alliance (GBA). 12 international organisations and as many as 19 countries have already agreed to join the alliance. Leaders of Singapore, Bangladesh, Italy, the US, Brazil, Argentina, Mauritius, and the UAE were present during the launch.

According to Mr. Hardeep Singh Puri, the visionary Global Biofuels Alliance, which is backed by the G20 countries and energy-related international organisations like the International Energy Agency (IEA), International Civil Aviation Organisation (ICAO), World Economic Forum (WEO), and World LPG Association among others, will strengthen global trade in biofuels and promote best practices, enabling the members to successfully address the Energy Quadrilemma.

India will save roughly Rs. 45,000 crore (US$ 5.43 billion) and 63 million tonnes (MT) of oil annually if E20 is implemented by 2025, he remarked.

E20 fuel is a mixture of 80% fossil-based fuel and 20% ethanol.

In India, 20% blended fuel has already been introduced this year, but in a phased manner, this year and widespread availability is anticipated in two years. Earlier, the target for E20 fuel had been advanced by the government from 2030 to 2025.

The market for ethanol was estimated to be worth US$ 99.06 billion in 2022 and by 2032, it is expected to reach US$ 162.12 billion after expanding at a compounded annual growth rate (CAGR) of 5.1%. According to the International Energy Agency (IEA), due to Net Zero targets, there would be a great opportunity for India to increase its biofuel industry by 3.5-5 times by 2050.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.