India Plans to Hit 20% Biofuel Blending by 2025 October

India's Biofuel Blending Jumps to 19%, On Track to Hit 20% by 2025

India is making remarkable strides in energy transition, with biofuel blending increasing from a modest 1.4% in 2014 to an impressive 19% as of last month. Union Minister for Petroleum and Natural Gas, Hardeep Singh Puri, announced this milestone at the seventh edition of the Mangaluru Literature Festival, expressing confidence that India will achieve its ambitious target of 20% biofuel blending by October 2025, five years ahead of the original goal of 2030.

Rising Energy Demand and India’s Role in Global Energy Growth

During his talk, the minister emphasized India’s growing energy needs, with crude oil consumption rising from 5 million barrels per day to 5.4 million barrels and expected to reach 6–7 million barrels in the coming years. He pointed out that according to the International Energy Agency (IEA), India will account for 25% of the world's energy demand growth, underscoring its pivotal role in the global energy landscape.

Green Hydrogen and Biofuels: Pillars of Energy Security

The minister outlined key strategies to bolster energy security and transition to sustainable energy. These include advancing biofuels, green hydrogen, and compressed biogas (CBG) to reduce dependence on imported fossil fuels. India is targeting the production of 5 million metric tonnes of green hydrogen by 2030, supported by significant initiatives such as:

• Inclusion of electrolysers in the Production Linked Incentives (PLI) programme.

• A ₹19,700 crore allocation under the Green Hydrogen Mission to foster research and attract global electrolyzer manufacturers to India.

He also highlighted Karnataka’s proactive steps in establishing CBG plants and pledged to boost gas usage in India’s energy mix from the current 6% to 15%.

India's Economic Growth Fuels Energy Transition

Citing projections by the International Monetary Fund (IMF), the minister noted that India is poised to become the world’s fourth-largest economy by 2027 but may achieve this milestone earlier due to its robust growth rates. He also emphasized India's historical significance, recalling its contribution of 23–25% to global GDP before colonial rule and expressing optimism about reclaiming its economic prominence.

Tackling Global Energy Price Challenges

Addressing concerns over rising crude oil prices, the minister clarified that global crude oil availability is not an issue. Instead, price hikes are influenced by OPEC’s supply restrictions. This underscores the importance of diversifying energy sources and strengthening domestic energy security.