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G20 Biofuel Alliance: $500 billion opportunity in 3 years
Industry News- Sep 13,23
The Indian Biogas Association research underscores the significance of this opportunity, given that India is currently hosting the G20 leaders' Summit in New Delhi.
According to the Indian Biogas Association (IBA), a collaborative effort in the field of biofuels could yield a substantial windfall of $500 billion within the next three years for G20 nations. This biofuel alliance is poised to create a mutually beneficial scenario, benefiting both G20 countries and the environment, as per IBA's findings.
The IBA's research underscores the significance of this opportunity, given that India is currently hosting the G20 leaders' Summit in New Delhi. Biogas, with its relatively low investment requirements and abundant raw materials, presents an opportunity worth USD 200 billion, making it a compelling choice compared to other energy generation options.
The report highlights the transformative potential of bioenergy and biogas, particularly in the context of decarbonising the transportation sector and reducing reliance on fossil fuels. Notably, the G20 adopted a voluntary action plan on renewable energy in 2016, committing member countries to increase their use of renewable energy sources. India has made remarkable progress in this regard, achieving a Compound Annual Growth Rate (CAGR) of approximately 22% in the last six years, with a twenty-fold increase in solar energy production over the past decade.
To kickstart the biofuel industry, the report suggests an initial investment of $100 billion in financial support, with each G20 partner contributing five billion dollars over the next three years. This anchor investment is expected to trigger additional private investments and foster biofuel production, particularly in the biogas sector. The report emphasises the critical role of establishing favourable regulatory frameworks across G20 nations and sharing technological advancements to ensure the success of this biofuel alliance.
Furthermore, the report advocates international cooperation, emphasising the importance of sharing best practices among G20 nations. Simplifying the transfer of machinery and equipment among G20 partners is also seen as a pivotal step toward the alliance's success.
The potential benefits are substantial, including a reduction in G20 countries' dependence on fossil fuels, leading to significant savings in non-fossil fuel import bills within the next three years, in alignment with Sustainable Development Goals. The initiative is expected to enhance energy security, create employment opportunities in each country, and contribute to improved air quality and a healthier environment, resulting in substantial healthcare cost savings.
Recognising the influential role of the G20 forum, the report underscores its capacity to champion bioenergy initiatives. According to the Ministry of New & Renewable Energy, the current daily production of biogas and Compressed Bio-Gas (CBG) in India stands at 1151 MT, with projections suggesting an increase to 1750 MT per day by 2025 through sector-focused efforts. The abundance of biomass resources in India can further boost CBG production to an impressive 170,000 MT per day, equivalent to one-third of crude oil imports or three times the imported LNG.
With the government aiming to establish 5,000 biogas plants, each with an average cost of $4.25 million, the opportunity in this sector alone exceeds $200 billion, representing a substantial economic prospect.
Source: Indiatimes
G20
Biofuel Alliance
$500 Billion Opportunity
Renewable Energy
Sustainability
Indian Biogas Association
G20 Summit
Biogas
Environmental Impact
Energy Security
International Cooperation
Fossil Fuel Reduction
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