Punjab government signs MoU with Virgo Corp for biofuel project
- Published | 12 February 2019
The agreement between Punjab government and Virgo Corporation for biofuel projects will help in extracting out agriculture stubble burning problem and will also drive Indian biofuel market over forecast period.
India: Giving a major fillip to its efforts to check stubble burning and boost the renewable energy sector, the Punjab Government led by Captain Amarinder Singh on Monday signed a Memorandum of Understanding with Virgo Corporation for a Rs 630 crore Biofuel project, for which technology will be provided by the US giant Honeywell and it will also supplementing the income of farmers by helping turn unmanageable agro-waste into raw material for producing biofuel.. The Chief Minister said the project would go a long way in containing the environmental pollution due to stubble burning, besides supplementing the income of farmers by helping turn the unmanageable agro-waste into raw material for producing bio fuel. He pointed out that every paddy season, the state generates nearly 20 million metric tonnes of paddy straw, which would be scientifically utilized for manufacturing bio fuel. With the shift towards renewable energy, this project would also elevate its power generation capacity with a commitment for a cleaner future. Besides incentivizing farmers to sell their crop stubble in lieu of burning it, the project would support the government's requirements for national biofuel blending targets as well as important air quality initiatives, such as the National Clean Air Programme (NCAP). US Ambassador Kenneth I. Juster said that the project for which the MoU had been signed was of critical importance as it demonstrated how collaboration towards a common vision could bring sustainable solutions and positive change.
According to BlueWeave Consulting, A biofuel is a fuel that is produced through contemporary biological processes, such as agriculture and anaerobic digestion, rather than a fuel produced by geological processes such as those involved in the formation of fossil fuels, such as coal and petroleum. Biofuel is commonly advocated as a cost-effective and environmentally benign alternative to petroleum and other fossil fuels, particularly within the context of rising petroleum prices and increased concern over the contributions made by fossil fuels to global warming. Due to increased energy demand, policy mandates and pressure to reduce greenhouse gas emissions in developing and non-developed economies has resulted in an increased demand for renewable fuels such as biofuel gas. India biofuels market identifies that the increasing government support will be one of the major factors that will have a positive impact on the growth of the market.
According to BlueWeave Consulting’s upcoming report, Titled –“India Biofuel Market, By Type (Biodiesel and Ethanol), By Feedstock (Coarse Grain, Sugar Crop and Vegetable Oil), By form (Solid, Liquid and Gaseous)and by Region (North ,South ,East and West) ,Size and Forecast, 2018-2025”- India Biofuel market is expected with grow with a significant rate in forecast period, 2018-2025, due to improving economic conditions, rising living standards, and changing eating habits in emerging countries, and growing demand for vegetable oil as a feedstock for biodiesel production. Furthermore, the demand for secure, sustainable and clean energy supply is expected to propel the demand for biofuels in India. On account of higher mandates for biofuel blending in automotive fuels and increasing government support for eco-friendly alternatives, the consumption of biofuel is expected to further grow at a significant level during the forecast period.