A biofuel alliance could unlock economic opportunities amounting to $500 billion for G20 countries over the next three years, according to a study by the Indian Biogas Association (IBA). This alliance is seen as a mutually beneficial arrangement for G20 nations, alongside its positive environmental impact.
Biogas, a pivotal component of this alliance, has the potential to yield $200 billion in opportunities. It boasts several advantages, such as requiring minimal investment in contrast to other energy generation options and having ready access to raw materials.
This revelation comes during India’s hosting of the G20 Leaders’ Summit in New Delhi, highlighting the timeliness and relevance of this study.
The study points out that bioenergy and biogas, in particular, hold the promise of eventually replacing fossil fuels entirely, especially in the endeavor to decarbonize the transport sector.
To initiate the biofuel industry, an initial financial investment of $100 billion is deemed necessary. This anchor investment is expected to catalyze private investments and biofuel production, especially in the domain of biogas. Creating a conducive regulatory environment within G20 countries and sharing technological advancements will be pivotal to the success of this biofuel alliance, the study underscores.
Enhancing international cooperation through the exchange of best practices among G20 nations is critical for the biofuel alliance’s triumph. Additionally, facilitating the transfer of machinery and equipment among G20 partners is essential to its success.
This alliance has the potential to reduce G20 nations’ dependence on fossil fuels significantly, leading to substantial reductions in their non-fossil fuel import bills within the next three years, thereby contributing to the achievement of Sustainable Development Goals. Furthermore, it would enhance energy security, create job opportunities in each country, improve air quality, and lead to cost savings in healthcare expenditure.
The G20, as a powerful forum, is well-positioned to champion the cause of bioenergy. As per the Ministry of New & Renewable Energy, India’s current daily biogas and Compressed BioGas (CBG) production stands at 1151 MT. With further investments and support in the sector, it is estimated to reach 1750 MT per day by 2025.
India also boasts substantial biomass resources, which, if harnessed for CBG plants, could lead to a substantial production capacity of 170,000 MT of CBG per day. This quantity could replace one-third of crude oil imports or three times the imported liquefied natural gas (LNG).
With the government’s ambitious target of establishing 5,000 biogas plants, there is a remarkable opportunity exceeding $200 billion for this sector. Each biogas plant is estimated to cost approximately $4.25 million.
Source PTI