Driving India’s Clean Energy Transition: Bamboo As Biofuel Sparks New Opportunities In NE

Guwahati: With India pushing towards a cleaner, more sustainable energy future, biofuels and natural gas have emerged as vital components in transitioning from fossil fuels. Recently, Business North East (BNE) spoke to S.K. Baruah, a leading voice in the Northeast’s energy sector, who provided insight into how this shift will affect the region's economy and industry. 

In an exclusive interview with Pankhi Sarma for BNE, CEO of North East Gas Distribution Company Limited (NEGDCL), S.K. Baruah discussed the adoption of ethanol in fuel systems, the expansion of city gas distribution networks, the potential of bamboo as a sustainable raw material for biofuel production, the need for targeted policies to support local industries and farmers in Northeast and how the growth of natural gas and biofuels is set to change the energy landscape in Northeast India.
 
Here are the excerpts from the interview.

Interview Q&A:

BNE: How do you see biofuel impacting the regional economy, especially in the context of a transition to cleaner energy?
S.K. Baruah: Absolutely. Biofuel has indeed become a major point of focus, not just globally but in India as well. This shift isn’t entirely new –biofuel has been in India for some time. For instance, ethanol, a significant biofuel, has been integrated into our fuel systems. Oil marketing companies in India purchase nearly 400 crore litres of ethanol each year to blend with petrol. This ethanol is transported to terminals for mixing rather than refineries. Currently, we’re blending at 15% ethanol, with a target to reach 20%.  However, vehicles aren’t designed to operate beyond this blend. So future technology upgrades may be necessary.

BNE: With the ongoing shift toward biofuels, what role does natural gas play, particularly for the Northeast?
S.K. Baruah: Natural gas is pivotal, especially as we transition toward a gas-based economy. In Gujarat, for example, natural gas is widely adopted, and compressed natural gas (CNG) is extensively used as a cleaner fuel alternative. CNG, essentially the same gas we use domestically but compressed for vehicle use, has become popular due to its dual-fuel capability in vehicles, allowing them to switch between CNG and petrol as needed. Northeast India, historically rich in natural gas reserves, has the infrastructure to connect with the rest of the country through pipelines, enhancing access and availability.

BNE: How will this infrastructure support CNG use in the region?
S.K. Baruah: With the new pipeline, we’re expanding city gas distribution systems across the Northeast. This infrastructure will enable household connections for domestic gas use and the establishment of CNG stations. Existing petrol pumps can add CNG dispensers, making them convenient for users. CNG’s economic advantages also extend to commercial vehicles, like the popular Maruti Dzire SCNG which costs around Rs 10.7 lakh, offers up to 33 km per kg of CNG, reducing fuel costs significantly for commercial operators. For commercial use, such as taxis, CNG can reduce fuel costs significantly and provide a return on investment within three years, assuming a monthly usage of around 3,000 kilometres. 

BNE: What about the gas infrastructure in the Northeast region? How is it evolving?
S.K. Baruah: The Northeast has long had access to natural gas resources, but the infrastructure was lacking. Now, with the new Barauni-to-Guwahati pipeline and city gas distribution companies, we are finally connected to the mainland gas grid. This pipeline will extend to other northeastern states, facilitating gas supply for cooking, CNG stations, and industrial use. Alongside this pipeline, city gas distribution companies, like ours, are working to supply gas to households for cooking, set up CNG stations, and facilitate industrial use.

 
Workers laying pipelines as part of the Barauni-to-Guwahati gas pipeline project,
showcasing progress in infrastructure (Google image)

BNE: What challenges do you foresee in adopting natural gas over traditional fuels like coal?
S.K. Baruah: A major challenge is cost. Coal remains considerably cheaper than natural gas, which impacts industries like tea production where gas could replace coal for cleaner operations. Unless regulations restrict coal use or mandate cleaner energy, industries may resist transitioning.

BNE: Could ethanol production from bamboo be a solution here?
S.K. Baruah: Yes, bamboo-based ethanol is a promising opportunity, especially for the Northeast. Unlike first-generation biofuels derived from food sources like rice or sugarcane, bamboo offers a sustainable, non-food alternative (second-generation biofuel). Bamboo quickly grows and requires minimal maintenance, making it a cost-effective raw material. There’s already a second-generation ethanol plant being set up in Assam with Finnish technology, which will be a pioneering project globally. Once operational, it will be the first of its kind globally, using bamboo as a primary raw material. 
Assam currently has four plants that produce 1G ethanol, mainly from broken rice sourced from Food Corporation of India (FCI) stocks. The broken rice is transported here, processed, and blended with petrol.

                           Ethanol production facility in Assam (Google image)

BNE: Would it also be beneficial for bamboo farmers?
S.K. Baruah: Definitely. Bamboo farming is low-maintenance compared to crops like tea, which need substantial chemical inputs. With the Numaligarh plant operational, farmers will have a stable market, likely expanding bamboo cultivation and providing a significant economic boost, especially if similar plants are developed in Meghalaya and Nagaland, where bamboo resources are abundant.

BNE: Could compressed biogas (CBG) be an alternative for clean energy in the Northeast?
S.K. Baruah: Yes, CBG presents another promising avenue. CBG is essentially purified biogas with a high methane content, which can be used similarly to CNG. It can be produced from municipal waste, agricultural residues, and livestock manure. However, challenges include waste segregation, as biogas plants require clean organic waste. Proper segregation and processing can help produce high-quality methane, which is compressed for use in vehicles or injected into the gas grid.

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BNE: Has the government taken steps to encourage CBG production?
S.K. Baruah: Yes, the Sustainable Alternative Towards Affordable Transportation (SATAT) initiative by the Government of India aims to set up 5,000 CBG plants across India. While we currently have only about 60 CBG plants in operation, SATAT offers incentives to private sector players willing to invest in CBG. However, obstacles like securing land and meeting environmental regulations need to be addressed for these projects to succeed.

BNE: What future steps can encourage gas-based economic growth in the Northeast?
S.K. Baruah: The key is to attract industries that are heavy users of gas, such as ceramics and glass manufacturing as they are more sustainable and profitable with gas than traditional options. Additionally, the government could encourage local farmers by establishing assured purchasing agreements with stricter environmental regulations for tea, and bamboo providing incentives for industries adopting cleaner energy sources. With robust policy support and infrastructure, the Northeast can become a leading region in biofuel and natural gas adoption.