NATIONAL BIOFUEL POLICY

 National Policy on Biofuels – 2018: Salient Features

• Categorisation of Biofuels: Biofuels have been categorised into 3 categories to extend appropriate fiscal incentives –
  • First Generation (1G): Bio-Ethanol produced from molasses and bio-diesel from non-edible oilseeds (a.k.a Basic Biofuels).
    
    
  • Second Generation (2G): Bio-ethanol produced from municipal solid waste (a.k.a Advanced Biofuels).
    
    
  • Third Generation (3G): Fuels like bio-CNG.
    
    
  
  
  
• Expansion of Scope of raw material for ethanol production: Starch containing materials like Corn, Damaged food grains like wheat, Rotten Potatoes, unfit for human consumption for ethanol production can be used.
  
  
• Surplus food grains can be used for ethanol production:
  • It allows use of surplus food grains for production of ethanol for blending with petrol with the approval of National Biofuel Coordination Committee.
    
    
  • This will benefit Farmers who are at a risk of not getting appropriate price for their produce during the surplus production phase.
    
    
  
  
  
• Viability gap funding: With a thrust on Advanced Biofuels, the Policy indicates a viability gap funding scheme for 2G ethanol Bio refineries.
  
  

Rajasthan’s strategy:

• It will emphasise on increasing production of oilseeds and establish a Centre for Excellence in Udaipur to promote research in the fields of alternative fuels and energy resources.