Budget 2024 & Sustainability: The interim budget kicks off a bio-manufacturing and bio-foundry scheme to elevate renewable energy and sustainable products to enhance renewable energy production
In a significant development, Finance Minister Nirmala Sitharaman has introduced a ground-breaking scheme focused on bio-manufacturing and bio-foundry. The primary objective is to enhance renewable energy production and promote the creation of sustainable next-generation products.
The initiative aims to foster the development of environmentally friendly alternatives, including biodegradable polymers, bioplastics, biopharmaceuticals, and bio-agri inputs. This move aligns with India's commitment to achieving net-zero goals by 2070.
Additionally, the finance minister announced the phased mandatory blending of compressed biogas (CBG) in compressed natural gas (CNG) for transportation and piped natural gas (PNG) for domestic purposes.
During the budget speech, Sitharaman emphasised that the scheme would facilitate a shift from the current wasteful manufacturing paradigm to one based on regenerative principles. Financial assistance will be provided to procure biomass aggregation machinery and support the collection process.
According to sources, less than 3 percent of India's installed power generation capacity comes from biomass power, cogeneration, and waste-to-energy projects.
Experts anticipate that the budget's financial assistance allocated for biomass collection and equipment will contribute to building a resilient feedstock supply chain.
This, in turn, will ensure the availability, accessibility, and affordability of bio-based feedstocks, instilling confidence among investors to establish bio-refineries.
SN Goel, the Chairman and Managing Director of the Indian Energy Exchange, has stated that the compulsory blending of CBG in CNG for transportation and PNG for domestic use will contribute significantly to greening the gas supply chain.
The International Energy Agency (IEA) predicts that implementing government policies could considerably boost renewable energy generation by 2040. This would account for around 15 percent of India's total energy demand. Currently, India has 750 million metric tonnes of biomass available each year, with a surplus biomass availability of 230 MMT per year.
A PwC report reveals that over 70 percent of Indians rely on biomass for energy across the value chain.
Sources indicate that over 800 biomass power projects, bagasse cogeneration, and non-bagasse cogeneration projects have been installed in India, boasting an aggregated capacity of 10,632 MW for power generation and 140 TPD for CBG production. Additionally, approximately 230 biomass pellet manufacturers and 1,030 briquette manufacturers supply these products to power plants and industries.
The National Bioenergy Programme has been notified by the Ministry of New and Renewable Energy for April 2021 to March 2026, allocating ₹858 crore under Phase-I.
This comprehensive program encompasses Waste to Energy, Biomass, and Biogas components, offering central financial assistance for large biogas, bio-CNG, and power plant projects.
In parallel, the Ministry of Petroleum and Natural Gas 'SATAT' (Sustainable Alternative Towards Affordable Transportation) scheme targets the production of 15 MMT of CBG from 5000 plants. India's National Biofuels Policy 2018 aims for an ethanol blending rate of 10 percent by 2022 and 20 percent by 2025. The country
launched the "Innovation Roadmap of the Mission Integrated Biorefineries" two years ago, showcasing collaboration and advancements at the Global Clean Energy Action Forum-2022 in Pittsburgh, United States.