New Delhi: The Global Biofuel Alliance (GBA) can generate an opportunity worth USD 500 billion in the next three years for the G21 countries, said the Indian Biogas Association (IBA) days after the launch of the alliance on the sidelines of the G20 Summit. Biogas can generate investment opportunities of USD 200 billion, considering that it requires the least amount of investment in comparison to other energy generation options and the easy availability of raw materials. Bioenergy / Biogas, in principle, has the potential to replace fossil fuels completely especially, to decarbonise the transport sector, said the association.
An initial investment of USD 100 billion in financial support will be required to trigger the biofuel industry, five billion for each G20 partner in the next three years. “This anchor investment will have further multiplier effects on private investments and the production of biofuels, especially biogas. Creating a favourable regulatory environment in the G20 countries and sharing technological advancements will be key to the success of this biofuel alliance. Of the USD 100-billion investment, 20 percent investment in research and development is expected to increase the overall momentum,” said the IBA.
Promoting international cooperation through best practices followed across G20 nations will be key to the success of the Global Biofuel Alliance, said the IBA. “The transfer of machinery and equipment within G20 partners must be made easy for the success of the biofuel alliance. This will help G20 nations reduce their dependence on fossil fuels. Their overall import bill for non-fossil fuels can be reduced by billions of USD within the next three years, helping them meet Sustainable Development Goals,” it added.
“Increased energy security and creation of jobs for each country can be envisaged. Improved air quality and a better environment can save billions in healthcare expenses. The G20 is a powerful forum that can play a major role in promoting Bio-energy. By taking the steps outlined above, the G20 can help accelerate the global transition to a clean and sustainable energy future,” said the association.
As per the Ministry of New and Renewable Energy (MNRE), current biogas and CBG production in the country is 1,151 MT per day. With a push to the sector, even with conservative estimates, it can go up to 1,750 MT per day by 2025 in the next few years, said the Indian Biogas Association. As far as biomass availability is concerned, there is a tremendous availability of potent biomass in India, and harnessing all of these as the CBG plant’s feedstocks shall lead to a whopping production capacity of 1,70,000 MT of CBG per day, good enough to replace one-third of the crude oil imports or three times the imported LNG, it added. The average cost for setting up a biogas plant is USD 4.25 million, and with the government’s target of setting up 5,000 biogas plants, this is a huge opportunity of over USD 200 billion, said the IBA.
