What are Biofuels The liquid fuels that can be obtained from biomass like plant matter or by the waste that living creatures produce, such as manure is known as Biofuels. The extensive range of organic materials used for biofuel production includes starch and sugary plants such as corn, wheat or sugar cane; oily plants such […]

The Government on India is proposing to introduce mandatory blending of ethanol in transport fuels to the extend of 5%.This means that the major transport fuel providers like IOC,BPCL and other will have to ensure that 5% of the petrol they sell will be mixed with 5% ethanol.The US is the biggest user of mandatory blending which has recently come under harsh criticism.The reasons given for supporting blending is that it reduces the requirements of fossil fuels which leads to lower carbon emissions,improves energy security and reduces pollution.However none of these advantages are seen in real life.In fact it has the massively negative consequence of increasing food prices which leads to the starvation of the poor globally.The Corn Industry in the USA has become a major lobbying force which makes the US government persist with the policy resulting in sharp increase in corn prices to the detriment of consumers.

Biomass Energy is the oldest source of Energy known to mankind and till the 19th century was the primary energy source.Even now Biomass Energy is used of Heating and Cooking by a large percentage of the Human Population.Biomass Energy with improving technology is being now used to construct large power plants.Growing Concerns over Climate Change and soaring Coal Prices are making some Power Plants convert from Coal to Biomass as a Fuel Source.Biomass Energy has many advantages such as being Carbon Neutral,using Animal and Crop Wastes in a useful manner,being poor friendly etc.However Biomass Energy like other Renewable Energy forms of Geothermal Energy faces problems of resources.However Biomass Energy suffers from some unique drawbacks like the problem of regular feedstock which becomes tough to acquire in times of drought etc.Biomass Energy also if not used appropriately can result in terrible air pollution as is the case with a majority of the Biomass Energy being used in the backward areas of the world today.Here is a list of the Cons of Biomass.

Algae Based Biofuels have been hyped in the media as a potential panacea to our Crude Oil based Transportation problems. Algae Based Biofuels as a Green Investing Opportunity is still some years away as the technology is still quite nascent.Despite a lot of hoopla and a number of IPO’s with synthetic biofuels as business,large scale commercial production and profits are still some time away.However the promise of this technology to revolutionize the Fossil Fuel powered Transportation Sector is Huge.Large Oil and Gas is already positioning itself in a small way to take advantage of this opportunity.Shell has been the biggest investor in Biofuels with a $12 Billion tie up with Brazilian Sugar Giant Cosan.The advantages of Algae Biofuels are being propagated by strong backers like Bill Gates ,Rockefeller family and Exxon Mobil.The main advantages of algae based biofuels are Efficient Land Usage,Reduction in Global Warming affect and ability to be directly used in vehicles and aircraft.However Algae Biofuel Technology is still quite immature despite startups like Solazyme,Algenol,Sapphire Energy and Synthetic Genomics having made impressive strides.

India’s Biomass Electricity Capacity at 2 GW (including cogeneration) is around 4% of the world’s total Biomass Power Capacity of around 50 GW.US is the leader in Biomass Capacity with around 20% of the world’s biomass potential.India has set ambitious plans for expanding the biomass power capacity in the next 10 years.India’s Ministry of Renewable Energy has set a very high target of multiplying the power capacity by 10 times in the next 10 years.India’s Total Biomass Potential with existing Technology is around 25 GW of which around 8% has been realized till date.India produce s 500 million tonnes of biomass per year, 120-150 million tonnes is surplus

India had set up around 500 MW of Biomass Capacity by 2007 and has increased it by almost 150 MW since then to reach around 1 GW capacity today.Most of Indias’ Biomass Electricity is being generated in Andhra Pradesh,Maharashtra,Tamil Nadu,Karnataka and Rajasthan.A lot of new capacity is being built in Punjab and Chattisgarh as well.India with a total biomass capacity of around 1 GW is planning to increase it by 10 times to 10 GW by 2020 by setting up a number of 1-2 MW biomass plants around the country.Around 400-600 acres of land are required to support 1 Mw of Biomass Capacity and 200-300 acres using energy intensive crops.This is much more than what is required for even thin film solar energy which is around 10 acres.The large land requirements make Biomass Energy Scalding a difficult proposition,however it has a great use in niche applications where there is a large amount of crop and animal residue/waste

Biomass Energy is clearly seeing a massive investment of private capital by a number of Green Energy companies.A number of these companies are backed by Private Equity Players.Almost all Sugar Companies in the country co-generate biomass power at their sugar plants.The size of the segment is quite large and has not been listed here.In India 3 types of companies are focused on biomass electricity – Sugar Companies,Rice Companies and Green Energy Utilities.The first 2 categories will be successful as their cost of feedstock is essentially zero while the the success of the third kind will depend on the management and execution.