Less discussed Renewable energy source.

Bio-fuels, not one of the most commonly discussed or used in the renewable energy business. These are the Fuels like Ethanol, Acetone, Butanol and Methanol which are all produced from plant, algae and animal waste. It is an alternative to petroleum products. The industry once thrived during World War 2 when these same fuels were used to make explosives. However, around the 1960s, biofuel factories began to close as petrochemical products became a more viable alternative.

Around time 2005, interest in Biofuels was rekindled and new companies started to emerge around the world. In 2003, India began producing Ethanol Blended Petrol. In 2006, a 5 percent bio-ethanol (E5) blend in gasoline was achieved. In 2022, government introduced 20% ethanol blending in gasoline. For a country which imports 85% of its oil, costing $551 billion, homemade ethanol will save around $4 billion annually. Ethanol blending would lead to more production of sugarcane, which will eventually increase more opportunities for farmers.

While we observed the benefits, there are a number of drawbacks to ethanol blending.

If E20 blended gasoline is used in a standard petrol engine car, the vehicle's efficiency may suffer. As a result, flex fuel vehicles are required to reap the benefits of E20 mixing. Ethanol is made from sugarcane, a first-generation biofuel which uses thousands of liters of water directly for its production. It's also been suggested that land used for sugar cane production to meet the E20 targets, could be better used for renewable energy sources. However, a hybrid solution such as Agro-Photovoltaic is always a possibility. As world is leaning towards EVs, it may also pose a threat to gasoline-powered automobiles.

The E20 targets appear to be costly in terms of resources, but one positive is that 2nd generation biofuels are given greater priority in terms of tax incentives and purchase price than 1st generation biofuels. Leading to the growth of the biofuels industry and maybe attracting further investment.