Explained: What Are Biofuels That Now Require A License To Export And Import In India

The Indian government has announced that the export of biofuels from SEZs and EOUs will be allowed without restrictions, provided they are produced using imported feedstock. This comes after the government imposed restrictions on biofuel exports in 2018, following similar restrictions on imports.

The Directorate General of Foreign Trade (DGFT) has amended that notification of 2018 "to the extent that export of biofuel from special economic zones/export oriented units are allowed for fuel as well as non-fuel purpose without any restriction when produced using only imported feedstock".

To export or import biofuels such as ethyl alcohol, petroleum oil, oils obtained from bituminous minerals, bio-diesel, and mixtures, a license is required, according to the amended export policy for biofuels in India, reports ET.

What are Biofuels?

Biofuels are hydrocarbon fuels produced from organic matter, either living or once living, in a short period of time. Biofuels can be solid, liquid or gaseous.

Examples of solid biofuels include wood, dried plant material, and manure. Liquid biofuels include bioethanol and biodiesel, while biogas is an example of a gaseous biofuel.

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What are its 4 categories?

Biofuels are classified into four categories. First-generation biofuels are made from food sources such as sugar, starch, vegetable oil, or animal fats using conventional technology. Examples include bioalcohols, vegetable oil, bioethers, and biogas.

Second-generation biofuels are produced from non-food crops or portions of food crops that are not edible, such as stems, husks, wood chips, and fruit skins and peels. Examples include cellulose ethanol and biodiesel.

Third-generation biofuels are produced from microorganisms such as algae.

Fourth-generation biofuels are advanced biofuels that use genetically modified algae biomass and advanced conversion technologies such as pyrolysis and gasification.

Pros and cons of biofuel

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Biofuels can reduce reliance on imported fossil fuels and increase energy security. They are more environmentally friendly than fossil fuels as they produce fewer greenhouse gas emissions and can reduce waste and pollution.

Biofuel production can contribute to agricultural development by providing a new source of income for farmers and promoting rural development while increasing agricultural productivity.

Efficiency is a challenge for biofuels as they produce less energy compared to fossil fuels. Using cropland for fuel crops may lead to food shortages, and biofuel production requires significant amounts of water, which can strain local resources.