In March 2019, Government had notified the Pradhan Mantri JI-VAN Yojana (Jaiv Indhan- Vatavaran Anukool fasal awashesh Nivaran). The scheme was for providing financial support to integrated bio-ethanol projects for setting up second-generation (2G) ethanol projects in the country using lignocellulosic biomass and other renewable feedstocks. Read here to learn more.
To keep pace with the latest developments in the field of biofuels and to attract more investment, the Union Cabinet, chaired by the Prime Minister approved the modified Pradhan Mantri JI-VAN Yojana in August 2024.
The modified scheme extends the timeline for implementation of the scheme by Five years i.e. till 2028-29. It includes advanced biofuels produced from lignocellulosic feedstocks i.e. agricultural and forestry residues, industrial waste, synthesis (syn) gas, algae etc. in its scope.
“Bolt-on” plants & “Brownfield projects” would also now be eligible to leverage their experience and improve their viability.
Pradhan Mantri JI-VAN Yojana
The Pradhan Mantri JI-VAN Yojana (Jaiv Indhan-Vatavaran Anukool fasal awashesh Nivaran) is an initiative by the Government of India aimed at promoting the production of ethanol from biomass and other renewable feedstocks.
The scheme was launched in 2019 as part of India’s broader efforts to enhance energy security, reduce carbon emissions, and support rural economies by providing an alternative use for agricultural residues.
Key Objectives of the Pradhan Mantri JI-VAN Yojana:
- Promotion of Biofuel Production: The scheme seeks to promote the production of ethanol, a biofuel, from biomass and other renewable resources, such as agricultural waste (e.g., crop residues, forestry residues), municipal solid waste, and other non-food sources.
- Reduction of Crop Burning: By providing a market for agricultural residues, the scheme aims to reduce the practice of crop burning, which is a significant contributor to air pollution in India, especially in the northern states.
- Support to Farmers: The scheme is designed to provide an additional source of income to farmers by creating a market for agricultural residues that would otherwise be wasted or burned.
- Environmental Benefits: It aims to reduce greenhouse gas emissions by promoting the use of cleaner, renewable energy sources. The use of ethanol as a fuel blend can reduce dependency on fossil fuels and lower carbon emissions.
- Energy Security: The production of ethanol from renewable resources is intended to reduce India’s dependence on imported crude oil, thus enhancing the country’s energy security.
- Waste management: To contribute to the Swacch Bharat Mission by supporting the aggregation of non-food biofuel feedstocks such as waste biomass and urban waste.
Implementation and Financial Outlay
- The scheme is implemented by the Ministry of Petroleum and Natural Gas (MoPNG).
- The total financial outlay for the scheme is ₹1,968.50 crores for the period 2018-19 to 2023-24.
- The scheme focuses on setting up 2G (second-generation) ethanol bio-refineries across the country, which will use agricultural residues and other renewable feedstocks for ethanol production.
Under this Yojana, 12 Commercial Scale and 10 demonstration scale Second Generation (2G) ethanol Projects will be provided a Viability Gap Funding (VGF) support in two phases:
- Phase I (2018-19 to 2022-23): wherein six commercial projects and five demonstration projects will be supported.
- Phase II (2020-21 to 2023-24): wherein the remaining six commercial projects and five demonstration projects will be supported.
Expected Impact
- The scheme is expected to provide direct and indirect employment opportunities in rural areas by promoting the setting up of bio-refineries.
- To produce 700 crore litres of ethanol by 2022, thus contributing to the government’s goal of achieving 20% ethanol blending in petrol.
- Meeting the Government of India’s vision of reducing import dependence by way of substituting fossil fuels with Biofuels.
- Achieving the GHG emissions reduction targets through progressive blending/ substitution of fossil fuels.
Ethanol blending in India
The Government has been promoting the blending of ethanol in petrol under the Ethanol Blended Petrol (EBP) Programme wherein Public Sector Oil Marketing Companies (OMCs) sell petrol blended with ethanol.
- Under the EBP Programme, the blending of ethanol with petrol increased from 38 crore litres in the Ethanol Supply Year (ESY) 2013-14 to more than 500 crore litres in ESY 2022-23 with a corresponding increase in blending percentage from 1.53% to 12.06%.
- The blending percentage has touched 15.83% in July 2024 and the cumulative blending percentage has crossed 13% in the ongoing ESY 2023-24.
- OMCs are on course to achieve the 20% blending target by the end of ESY 2025-26.
- It is estimated that over 1100 crore litres of ethanol will be required during ESY 2025-26 to achieve 20% blending for which 1750 crore litres of ethanol distillation capacity need to be installed to meet the blending requirement and for other uses (potable, chemical, pharmaceutical etc.).
To meet the ethanol blending targets, the Government is also focusing on alternate sources like 2nd Generation (2G) Ethanol (Advanced biofuels).
- Surplus biomass /agricultural waste which has cellulosic and lignocellulosic content, industrial waste etc. can be converted to ethanol using advanced biofuel technology.
- To encourage 2G ethanol capacity in the country and attract investment in this sector, “Pradhan Mantri JI-VAN (Jaiv Indhan- Vatavaran Anukool fasal awashesh Nivaran) Yojana” was notified on 07.03.2019 for providing financial assistance to 2G Bio-ethanol projects.
- Under the scheme, the first 2G Ethanol Project was set up by Indian Oil Corporation Limited at Panipat, Haryana in August 2022.
- The other 2G commercial projects being set up by BPCL, HPCL and NRL at Bargarh (Odisha), Bathinda (Punjab) and Numaligarh (Assam) respectively, are also nearing completion.
In news
The government is evaluating a plan to introduce a 5% ethanol blend in diesel (ED-5) as it nears its goal of 20% ethanol blending in petrol within the next 2 years.
- This initiative aims to improve environmental benefits and reduce crude oil import costs. In May, ethanol blending in petrol exceeded 15% for the first time, thanks to increased purchases from biofuel producers who have significantly expanded their production capacities.
- The Automotive Research Association of India (ARAI) conducted trials on BS-III and BS-VI buses in 2018-19 to assess ethanol-blended diesel’s performance, emissions, and durability.
- The 500-hour test showed no major failures and slightly lower fuel consumption than regular diesel.
- However, further trials on BS-VI vehicles are still needed, and a public sector oil company is expected to test the fuel on a heavy-duty vehicle soon.
Conclusion
The Pradhan Mantri JI-VAN Yojana is a significant step toward promoting sustainable energy production and reducing environmental pollution in India.
The successful implementation of the scheme requires addressing challenges related to the collection and transportation of biomass, technological advancements for efficient conversion processes, and the establishment of a sustainable supply chain.
Frequently Asked Questions (FAQs)
Q. What is ethanol blending?
Ans: Ethanol can be mixed with gasoline to form different blends. As the ethanol molecule contains oxygen, it allows the engine to more completely combust the fuel, resulting in fewer emissions and thereby reducing the occurrence of environmental pollution.
Q. How much ethanol blending is allowed in India?
Ans: India has achieved an average ethanol blending rate of 11.60 per cent in the first four months of the 2023-24 supply year that started from November, against the 15 per cent target set by the government for the whole year. By 2025 supply year, the government has set the target of blending 20 per cent ethanol with petrol.
Q. What is 1G and 2G ethanol?
Ans: The bioethanol technology is termed as either first generation (1G) or second generation (2G) depending upon the origin of such sugars. While the 1G bioethanol technology uses starch as a source of sugar, the 2G bioethanol technology uses cellulose and hemicelluloses as a source of sugar.
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-Article by Swathi Satish
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