Bio Energy Sector

Bio –Energy Sector

India’s bio-energy sector is quickly transforming from a niche alternative to a mainstream pillar of energy strategy, helping the country move toward energy independence while offering solutions that are environmentally sustainable, economically empowering, and socially inclusive. India produces nearly 750 million tonnes of biomass annually, much of which has traditionally been burned in fields. This practice generates severe air pollution, releasing PM2.5, carbon monoxide, and greenhouse gases, contributing to smog and posing serious health risks, including respiratory and cardiovascular diseases. By converting agricultural residues, organic waste, and other biomass into fuel and electricity, bio-energy not only reduces air pollution but also provides a renewable alternative to fossil fuels, easing pressure on natural resources and reducing reliance on imports.

The economic potential of bio-energy is equally compelling. India’s biofuels market, valued at over US$ 10 billion, is projected to grow significantly over the next decade. With government initiatives such as the National Bio-Energy Mission, the target of 20% ethanol blending in petrol by 2025, and schemes like SATAT for compressed biogas production, the sector is creating new income streams for farmers. Residues that were once considered waste, like rice stubble or sugarcane bagasse, are now being monetized, helping farmers earn additional revenue while reducing harmful stubble burning. Structured biomass supply chains also generate decentralized green jobs, strengthening rural economies and promoting inclusive growth.

Technological advancements are pushing bio-energy from experimental projects to commercial-scale solutions. Second-generation ethanol, compressed biogas (CBG), and sustainable aviation fuel (SAF) are emerging as viable alternatives to traditional fossil fuels. Co-firing biomass in coal-based power plants, planned at 7% by 2026, further demonstrates the sector’s role in cleaner electricity generation. In aviation, India is targeting a 2% biojet fuel blend for international flights by 2028, aligning with global sustainability goals. These initiatives collectively help reduce greenhouse gas emissions, improve energy security, and conserve finite natural resources.

Globally, the bio-energy market is expected to exceed US$ 150 billion by 2030, and India is well-positioned to emerge as a leader. By leveraging its abundant biomass, cost advantages, and expanding R&D ecosystem, India can meet domestic demand and become a major exporter of ethanol, bio-CNG, sustainable aviation fuel, and bio-based chemicals. More importantly, bio-energy supports India’s net-zero target by 2070 and aligns with international climate commitments, demonstrating that economic growth and environmental responsibility can go hand in hand.

Bio-energy is a climate solution, a rural livelihood enhancer, and a technological innovation driver. By reducing pollution, supporting farmers, diversifying energy supply, and conserving natural resources, it stands as an important aspect of India’s sustainable development and energy independence journey.

National Committee on Bio –Energy will focus on FPA (Feedstock–Product–Application) framework.

Guiding Principles of the Committee

Sustainability – Align all actions with India’s Net Zero and climate commitments.
Collaboration – Work across ministries, industry, farmers, and international platforms.
Innovation – Champion R&D, technology transfer, and entrepreneurial solutions.
Transparency – Promote fair pricing, open markets, and independent regulation.
Inclusivity – Ensure benefits to rural communities, smallholders, and industry stakeholders.
Global Leadership – Expand India’s influence in the Global South through the Global Biofuels Alliance and technology exports.