Sat, 13 Jun 2026 · LIVE
Updated Jun 12, 2026 · 14:36
Business India News Updated Jun 12, 2026

India Explores Integrated Bioenergy Ecosystem to Boost Energy Security

The Indian government is considering an integrated approach to the bioenergy ecosystem to strengthen energy security and reduce crude oil imports. NITI Aayog Advisor Rajnath Ram highlighted that the transport sector consumes 70% of fuel, making biofuels like ethanol crucial for reducing imports. The government has rolled out E20 fuel and is examining higher blends like E85 and E100, with flex-fuel vehicles already launched. Challenges remain in project bankability, supply chain logistics, and fragmented landholdings, but Ram expressed confidence in biofuels playing a major role in India's development by 2047.

Govt exploring integrated bioenergy ecosystem to boost energy security, cut imports: NITI Aayog's Rajnath Ram

New Delhi, June 12

The government is considering an integrated approach to India's bioenergy ecosystem as it seeks to strengthen energy security, cut crude oil imports and expand cleaner fuel alternatives, Rajnath Ram, Advisor, NITI Aayog, said on Friday.

Speaking to ANI on the sidelines of the India Bioenergy Conference in the national capital, Ram said discussions are underway to give a broader push to the sector.

"There are some discussions going on in the government because they want to take an integrated view of our bioenergy ecosystem. The government is pushing bioenergy and most states are taking it up," he told ANI.

The conference focused on promoting bioenergy technologies and addressing opportunities and challenges in the sector.

Highlighting the importance of bioenergy for India's energy security, Ram said the current geopolitical environment has reinforced the need to diversify energy sources and reduce dependence on imports.

"That is required, in fact, for energy security purposes because, seeing the current geopolitical scenario, we have to de-risk somehow in the energy business," he said.

Ram noted that the transport sector accounts for nearly 70 per cent of fuel consumption, making biofuels an important tool for reducing fossil fuel imports.

"A large part of the consumption remains in the transport sector, almost 70 per cent. Alternate sources, biofuels like ethanol and other kinds of SAF, will reduce that use in the transport sector. So definitely imports could also be reduced," he said.

On ethanol blending, Ram said the government has already rolled out E20 fuel and is examining higher blends.

"We have rolled out E20 and the government is looking at E85 and E100. Flex fuel is also under consideration and some companies have already launched flex-fuel vehicles," he said, adding that wider adoption could help lower India's crude oil import bill.

Addressing challenges facing the sector, Ram said improving project bankability and strengthening supply chains remain key priorities.

"The challenges remain with having the bankability of the project. We have to work towards the system and supply chain, from connection to marketing of the entire spectrum," he said.

He also stressed the need to ensure that only surplus feedstocks are used for biofuel production and that projects are assessed based on lifecycle and net-energy considerations.

According to Ram, fragmented landholdings, lack of mechanised collection systems and high transportation costs continue to affect project viability.

"The supply chain logistics aspect, fragmented and small landholdings, lack of mechanical collection and high transportation cost can create a viability issue," he said.

While first-generation biofuel technologies are relatively mature, challenges linked to second-generation technologies still need to be addressed, Ram said. "Industry, policy and R&D will solve these issues," he added.

Expressing confidence in the sector's future, Ram said biofuels would play a major role in India's development journey.

"Towards 2047, we have to keep in mind energy from now on and that is where biofuels play a big role," he said.

— ANI

Reader Comments

Vikram M

Interesting perspective from NITI Aayog. E20 rollout is good but the real challenge is supply chain logistics - our fragmented landholdings make collection a nightmare. Need cooperative models like AMUL to aggregate biomass. Also, flex fuel vehicles need tax incentives to gain traction.

Sneha F

Sounds promising but I'm skeptical about large-scale bioenergy. Remember the ethanol diversion from sugar? It caused water shortages in Maharashtra. Need strict lifecycle assessments. Also, why no mention of biogas for rural households? That would directly benefit farmers. Just saying...

Rohit L

Good move for Atmanirbhar Bharat! Reducing crude imports is critical - we import 85% of our oil needs. Bioenergy plus solar plus nuclear - that's the mix we need. But implementation is key. Hope states cooperate and farmers get fair prices for biomass. Arre bhai, farmers ko fayda hona chahiye!

Kavya N

Love the integrated approach! But we need clear policy timelines and R&D investment for 2G technologies. Also, SAF (Sustainable Aviation Fuel) for airlines is a game-changer - imagine Indian flights running on agri-waste! However, cost competitiveness with fossil fuels remains a big hurdle.

James A

Impressive vision from NITI Aayog. As someone who works in renewable energy globally, India's bioenergy potential is enormous - but I've seen too many pilot projects fail due to poor economics. The focus on bankability and supply chain is spot on. Hopefully, private sector gets clear incentives to scale up.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

Reader Voices

Leave a comment

Be kind. Add to the conversation. 0/50
Thank you — your comment has been submitted.
JS blocked