Guwahati: With rich agricultural resources and a growing emphasis on renewable energy, Assam is coming to the forefront of India's biodiesel sector. The state's fertile land and climate are perfect for cultivating biodiesel feedstocks like soybean and palm oil, making agriculture central to Assam's green energy transition.
During an exclusive interview with Business North East (BNE), Joint Director, Department of Geology and Mines, Government of Assam, Barnali Nath, highlighted the key role of the agricultural sector in biodiesel production.
"The agriculture sector has a massive potential to lead biodiesel production. Crops like soybean and palm oil can provide raw materials needed, offering immense opportunities to farmers and bringing much-needed money into rural economies," she said.
The government representative also stated that a self-sustaining ecosystem for green energy and farmer income could be developed through the production of biodiesel from agricultural feedstocks.
"Assam is rich in fossil fuels like oil and natural gas, but for biodiesel, the focus will shift to agricultural products. As one example, biofuel production, including ethanol, is targeted to be made at the NRL by 2025. For this, crop cultivation of soybean and palm oil would create a continuous source of supply in the chain toward biodiesel," she added while explaining Assam's potential in green energy transition.
Despite the potential, the consumption of biodiesel is hindered by several infrastructural challenges in India. "There are significant challenges regarding production costs, which are currently higher than those of petroleum-derived diesel," she said.
While highlighting the issues, she further mentioned that storage and blending facilities are also missing. There is also a requirement for greater public awareness about the benefits of biodiesel. These are areas where scientists and researchers are playing a crucial role.
When asked about investment opportunities, Nath pointed out that the agricultural value chain offers promising prospects for private players. “Private investment can be directed towards the cultivation of biodiesel feedstocks like vegetable oils, which not only supports the industry but also ensures rural benefits. There is a lot of scope for businesses to step in and create innovative solutions in this space,” she stated during the BNE interview.
Regarding policy reforms, she suggested that to lure in private players and scale production, the government needs to review policies that can make the production of biodiesel viable in an economic sense.
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"Today, biodiesel costs more to make than petroleum diesel. That is one of the significant deterrents to private players. While there is the ministry that governs the petroleum sector, for instance, multiple industries and ministries would need to align their policies toward making it beneficial," Nath said.
"It is definitely possible for farmers to be at the centre of this green transition. Beyond producing sustainable energy, growing these feedstocks can be an instrument for promoting rural economies," she said, highlighting the importance of agriculture in the development of biodiesel.
Meanwhile, the BIS Lab Conclave saw industry leaders, policymakers, scientists, and researchers together, driving home the pressing need for an integrated approach towards addressing the challenge of producing biodiesel. The event dwelled extensively on public-private partnerships, new developments in technologies used in producing biodiesel, and the call for standardisation in the oil sector.
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