India’s production of liquid and gaseous biofuels could more than double by 2030 if stronger policy measures are put in place, according to a new report released by the International Energy Agency (IEA). The report says such growth would support India’s energy security goals while helping cut emissions.
The IEA said bioenergy is becoming increasingly important as India’s energy demand continues to rise rapidly. Existing government policies have already led to sharp growth in ethanol and compressed biogas use, while also creating opportunities for biodiesel and cleaner aviation fuels. Considering the feedstock availability and market conditions, these fuels are expected to grow from 293 petajoules (PJ) in 2025 to 429 PJ by 2030, with ethanol and CBG accounting for the majority of this growth.
According to the report, expanding biofuel production would reduce India’s dependence on imported fuels, boost rural incomes, create jobs and support national climate targets. These benefits are supported by the country’s large availability of agricultural residues and organic waste, which can be used as raw material for bioenergy.
The IEA pointed to India’s ethanol blending programme as one of the country’s most successful policy-driven initiatives. Since the National Policy on Biofuels was introduced in 2018, ethanol consumption has increased from less than two billion litres to over 11 billion litres a year. This has made India the world’s fourth-largest producer of liquid biofuels.
The report also noted strong progress in compressed biogas, backed by national policies in place for more than a decade. Around 170 compressed biogas plants are currently operating across the country, while nearly 300 more are under construction. Interest is also rising in sustainable aviation fuels as airlines look for cleaner fuel options.
Under the IEA’s main outlook, which is based on current policies, India’s use of liquid and gaseous biofuels is expected to grow by more than 50% by 2030. With stronger policy support, better access to raw materials and improved supply networks, consumption could more than double over the same period, the report said.
To achieve faster growth, the IEA identified four key steps: creating a clear long-term plan for sustainable fuels, improving supply chains and infrastructure, supporting innovation for new fuels, and setting up strong systems to track emissions and sustainability so Indian biofuels can compete in global markets.
