Dependency on oil imports was 86.4% in 2022-23, up from 85.9% a year ago
The India Biodiesel Market size is expected to be about US$634.8 million by 2032, registering a CAGR of 8.11% 2024 to 2032, and having recorded a value of US$314.7 million in 2023, according to an industry report in the list of ResearchAndMarkets.com’s offering.
The expanding energy demand in India results from population growth and rapid economic development, said the “India Biodiesel Market Report by Application (Fuel, Power Generation, Others), Feedstock (Vegetable Oil, Animal Fats), and Company Analysis 2024-2032”, released 12 Sept.
India’s third-highest user of total final energy is the road transportation sector, which is nearly solely dependent on petroleum oil. According to a ScienceDirect article, India is expected to have 411.8 million vehicles in operation by 2030, with 260.1 million and 34.6 million being gasoline- and diesel-powered cars, respectively.
The demand for gasoline and diesel fuels will rise dramatically from the current level by 2030, and India will have to deal with the ensuing problems. India must use biofuels, including biodiesel, in the transportation sector to reduce the impact of these fuels. The India biodiesel market is anticipated to grow as a result.
India is the third-biggest oil consumer in the world, after the US and China. The nation’s need for oil is increasing every year. As a result, the country is highly dependent on crude oil imports.
India bought 212.2 million tonnes of crude oil in 2021-2022, up from 196.5 million tonnes the year before, as stated by the Petroleum Planning and Analysis Cell (PPAC). During the April 2022-2023 period, the dependency on oil imports was approximately 86.4%, compared to 85.9% during the same period last year.
Increased import costs for crude oil are anticipated to impact macroeconomic indicators negatively. An excellent substitute for imported fossil fuels is biofuels. As a result, the biodiesel market in India is expanding.
The government also undertakes several measures to lessen its reliance on imported crude oil. For example, the Indian government supports the Ethanol Blending Programme (EBP) to lower carbon emissions, increase farmer incomes, and lessen the nation’s reliance on crude oil imports.
The government has moved the deadline for blending 20% ethanol (E20) into gasoline from 2030 to 2025.
India has implemented several legislative measures to support its energy needs, restrict oil imports, and promote the production and use of biodiesel. This drives the biodiesel market in India. The National Standards Body of India, the Bureau of Indian Standards (BIS), pledges to create pertinent standards to support the nation’s green objectives.
Indian Standards would greatly help the goals of the Global Biofuel Alliance (GBA), a multilateral organization, according to a statement made by BIS and Prime Minister Narendra Modi during the recent G20 leaders’ summit in New Delhi.
The government has established several notable initiatives to support the growth of biofuels in India, including the SATAT plan to enhance the production of Compressed Biogas (CBG) in India and Viable Gap Funding (VGF) for 2G bioethanol under the Pradhan Mantri JI-VAN Yojana.
Companies leading the industry are: Archer Daniels Midland Company; FutureFuel; Neste; Renewable Energy Group; Bunge Global SA; Wilmar; and Shell. Fiinews.com
