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  • 04 April, 2023

  • 3 Min Read

Biofuel Export

Biofuel Export

  • The government changed the rules for exporting biofuel from special economic zones (SEZs) and export-oriented units (EOUs), allowing it to be exported without restriction for both fuel and non-fuel uses as long as the biofuel is made using an imported feedstock.
  • After placing similar limitations on their imports, the Indian government restricted the export of biofuels in 2018.


  • The notification from August 2018 limited the export of biofuels and mandated licences for both imports and exports. Ethyl alcohol, petroleum oil, oils derived from bituminous materials, bio-diesel, and mixtures are examples of biofuels.

  • The amendment maintains the ban on the export of biofuel for uses other than gasoline outside of SEZs and EOUs. Even so, when manufactured utilising just imported feed stock inside SEZ and EOU, export is permitted for both fuel and non-fuel purposes without any restrictions.

About Biofuel

  • Vegetable oils, waste feedstock, or biomass such as maize or sugar can be used to make biofuels.

  • As biofuels emit less carbon dioxide (CO2) than traditional fuels, blending them with current fuels is a practical solution to cut CO2 emissions in the transportation sector.

  • Biofuels are any hydrocarbon fuels, such as solid, liquid, or gas, that are created quickly from organic material, including live or formerly living material.

Significance of biofuel

  • Rural areas will see an increase in infrastructure investment as a result of the addition of 2G bio refineries around the nation.

  • Economic Security: Using biofuels instead of fossil fuels can lower reliance on them and lower the cost of refuelling homes, companies, and cars.

  • Environmentally friendly: Compared to fossil fuels, biofuels are renewable, emit less hazardous levels of carbon dioxide, and cut greenhouse gas emissions by up to 65%.

  • Energy security: By producing biofuels on a big scale, we may save money on foreign exchange and lessen our reliance on imported crude oil.

  • A substantial amount of feedstock is needed to produce biofuel, which might open up a new revenue stream for farmers.

  • Also, this could aid in boosting agricultural output and rural development.


  • Efficiency: Certain biofuels are less efficient than fossil fuels at producing energy. For instance, 1 gallon of ethanol provides less energy than 1 gallon of petrol (a fossil fuel).

  • Food Shortages: There are worries that exploiting valuable cropland for fuel crops could raise the price of food and possibly cause a food crisis.

  • Water Use: The production of biofuel and the correct watering of biofuel crops both demand enormous amounts of water, placing a strain on local and regional water supplies.

Classification of Biofuel

  • The term conventional biofuels also applies to first-generation biofuels.

  • They are made directly from food crops by removing the oils for biodiesel production or by fermenting the bioethanol to make it.

  • Advanced biofuels are a common name for second generation biofuels.

  • They are created from biomass crops, such as wood, organic waste, food crop waste, and other non-food crops.

  • Algae are the source of third generation biofuels.

  • In order to serve as a low-cost, high-energy, and totally renewable feedstock, algae are grown.

  • The goal of fourth generation biofuels is to capture and store CO2 in addition to creating sustainable energy.

  • Carbon dioxide is caught at every level of production using techniques like oxy-fuel combustion, and it is subsequently geo-sequestered by being kept in abandoned oil and gas fields or saltwater aquifers.

Government policy

  • By encouraging the development of biofuels from domestic feedstock, the National Policy on Biofuels 2018 seeks to increase the use of biofuels in the energy and transportation sectors.

  • Pradhan Mantri JI-VAN Yojana, 2019: to foster R&D in the 2G ethanol industry and to establish a supportive environment for the establishment of commercial initiatives.

  • The GOBAR (Galvanizing Organic Bio-Agro Resources) DHAN project is centred on managing and converting solid farm waste, such as calf dung, into compost, biogas, and bio-CNG.

  • Repurpose Used Cooking Oil (RUCO): It was started by the FSSAI with the intention of creating an ecosystem that will allow for the collection and conversion of wasted cooking oil into biodiesel.

Source: The Economic Times

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