April 3, 2026

Biofuels

  • Directorate General Of Foreign Trade (DGFT) has modified the 2018 notification, allowing export of biofuel from Special Economic Zones (SEZs) and Export-Oriented Units (EOUs) for both fuel and non-fuel purposes without any restrictions if biofuel is produced using imported feed stock.
    • Biofuel imports and exports both require a license.

About Biofuels

  • Biofuel, renewable form of energy, is any hydrocarbon fuel that is produced from organic matter in a short period of time.
  • Examples include Bio ethanol, Biodiesel, Compressed Biogas etc.
  • Different generations of Biofuels
    • First GenerationEdible biomass – Sugar beet , Sugar cane, Wheat, Corn, Oil crops
    • Second GenerationNon-Edible biomass– Wood, Grass, Straw, Waste
    • Third GenerationAlgal biomass– Macroalgae, Microalgae
    • Fourth GenerationBreakthrough– Pyrolysis, Solar to fuel, Genetically Modified Orgaisms
  • Significance of Biofuels
    • Reduce greenhouse gas emissions and are a renewable source of energy.
    • Benefit Farmers with additional income.
    • Opportunities for new businesses in processing of biomass, storage solutions and enable employment generation.

Government policies to promote Biofuels

  • National Policy on Biofuels, 2018 for reaching 20% ethanol-blending by 2025-2026.
  • Pradhan Mantri JI-VAN (Jaiv Indhan- Vatavaran Anukool fasal awashesh Nivaran) Yojana, 2019.
  • GOBAR (Galvanizing Organic Bio-Agro Resources) DHAN scheme, 2018.
  • Sustainable Alternative Towards Affordable Transportation (SATAT) to establish an ecosystem for Compressed Biogas (CBG) production.

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