Biofuel Policies in India: An Assessment of Policy Barriers

Biofuel Policies in India: An Assessment of Policy Barriers

Sunil Kumar Verma, Prashant Kumar
DOI: 10.4018/978-1-6684-5269-1.ch004
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Energy is one of the most precious and demanded commodities among various industries and consumers to sustain the current lifestyle. Energy is a crucial element, which unswervingly influences the country's economic development. Numerous methods are adopted to reduce global warming, embracing clean energy from wind, solar, and biomass sources. This chapter speaks about the current situation of energy demand, the innovations in biofuel sources, and the obstacles regarding the commercialization and production of microalgal biofuel.
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1. Introduction

1.1. Green Energy Projection and Foundation of Energy Demand

The term ‘energy’ is supposed to be a derivative of the Greek word ‘Energeia’ which means activity, and as we advanced, the explanation of energy transformed according to its field. When coming to the biological system, cells store energy in biomolecules such as lipids, complex carbohydrates, and proteins. The first law of thermodynamics can conclude that energy can neither be created nor destroyed; it can only be transformed from one form to another (Figure 1).

Figure 1.

Various types of Energy


Worldwide to sustain the current lifestyle, energy is one of the most precious and demanded commodities among various industries and consumers. Energy is a crucial element, which unswervingly influences the country’s economic development (Cleveland et al.,2000). It can be comprehended to the advanced energy accessibility the improved chances of nations growth. There is a solid and direct correlation between energy to per capita GNP, countries with the higher gross national product have higher energy consumption per individual (Stern, 2011). The exponential boom of energy use was originated through fossil hydrocarbon burning, with the additional support of coal in the 19thcentury, followed by Crude oil use in the 20thcentury, and currently, prolonged with the help of natural gas (Hall, 2016; IEA, 2016; Sayre, 2010). Currently, fossil fuels' central portion of energy demands is fulfilled. Worldwide, there is an increase in fuel price due to decrease in fossil fuel reserves (Monari et al., 2016), in addition with increased greenhouse gas emissions leading to global warming are two major concerning coercions for the transport area (Reyimu and Özçimen, 2017; Hashim et al., 2017; Lecksiwilai et al., 2017). Combustion of fossil fuel is required for power generation despite having several negative consequences such as pollution (Liu et al., 2017). Several pollutants such as SO2, NOx, CO, CO2, ground-level ozone, particulate matter, volatile organic compounds (VOC) are emitted.

There has been an increase in global temperature by 2 ºC due increase in CO2 emission in the last decade (Friedling stein et al., 2014). In 2015, the Paris agreement was signed by around 194 countries whose primary aims are

  • 1.

    Reduction of 2 ºC in global temperature.

  • 2.

    Aim to curb greenhouse gas emissions.

  • 3.

    Reconnoitre substitute energy sources.

It is a well-known fact that there is a decrease in global fossil fuel reserves, and its current usage rate will last a few generations. We have to reduce our energy demands in the coming future. We need to search for eco-friendly, renewable fuel prospects (Dresselhaus and Thomas,2001). Biofuel produced from biological materials can be used as a substitute for diesel due to low emission levels when matched (Tsolcha et al., 2017; Bildirici, 2017). Major significance of using bio-fuel is that It is made from renewable organic substances and has the capacity to eliminate several of the negative features of fossil fuel extraction and usage, such as greenhouse gas and conventional pollutant emissions, finite resource depletion, and reliance on volatile, unpredictable foreign suppliers. The demand for bio-fuels also gave boost farm revenues (united states environmental protection agency, 2022). Nevertheless, sustainable biofuel promotion in the energy sector relies on several elements: government course of action. Currently, each country needs to frame its policies to have better biofuel penetration in the energy market. (Su et al., 2015) policies may have regulatory gaps which provide a political system to countersign contradictory objectives. With the introduction of bio-fuel in the energy market, by 2010 around 3% of worldwide transportation energy used was in form of bio-fuel and with the current increase it is expected to reach 27% of transportation fuel by year 2050 (Timilsina, 2014). The biofuel importance was first accredited by Brazil, the United States of America, and the European Union; now, this importance is being understood by Asian countries which can be understood by the amount of bio-fuel produced by them as mentioned in table 1 (Mohan et al., 2006).

Table 1.
Biofuel Production
Brazil19 00022719 227(FAO, 2008)
Canada1 000971 097
China1 8401141 954
United States of America26 5001 68828 188
European Union2 2536 1098 361
Others1 0171 1862203

Brazils bio-fuel program was a massive success due to strong support of stringent legal directives and operative enactment (Mohan et al., 2006). In consideration of India’s perspective, in 2008, A National Policy on Bio-fuel was approved to standardise biofuel marketing in India via various firms in a transparent and operative mode following all accepted legal guidelines. However, we cannot replicate Brazil’s success in India because of different climates and inconsistent rainy season patterns. Since then, in the last fifteen years, the Indian government has implemented different policies to encourage the usage of biofuels. In order to accomplish all the policy objectives, we need to have competent policy strategies to have appropriate information of the market and its dynamics for the day to day scenario (Barisa et al., 2015).

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