Advantages of Biofuels for India

Decreased emissions of harmful pollutants: Ethanol and biodiesel contain oxygenated compounds containing no sulphur. These fuels do not produce sulphur oxides which lead to acid rain formation. Sulphur is removed from petrol and diesel by a process called hydro-desulphurization. This process causes loss in lubricity which has to be rectified by producing an additive. Biodiesel has natural lubricity and thus no lubricity enhancing additive is required.
Condensation in green house gas emissions: The net CO2 emission of burning a biofuel like ethanol is zero since the CO2 emitted on combustion is equal to that absorbed from the atmosphere by photosynthesis during the growth of a plant (sugarcane) used to manufacture ethanol. Biofuel contribute significantly to climate change by reducing CO2 emissions. Biodiesel projects can qualify as CDM projects and thus can fetch in additional income through the sale of certified emissions reductions.

Employment generation: Biofuel industry in future can become major source of employment. The investment in the ethanol industry per job created is $ 11000, which is significantly less than $220,000 per job in petroleum sector. In India sugar industry which is the backbone of ethanol production is the biggest agro industry in the country. The sugar industry is the source of livelihood for about 45 million of farmers and their dependents comprising 7.5% of rural population. Another half a million people are employed as semi-skilled laborers in sugar cultivation. The first phase of the National Biodiesel Mission demonstration project will generate employment of 127.6 million person days in plantation by 2007. On a sustained basis, the program will create 36.8 million person days in seed collection and 3,680 person years for running the seed collection and oil-extraction centres.
Energy security and decrased dependence on oil imports: India ranks sixth in world in terms of energy demand. India‘s domestic crude oil production only satisfies about 25% of this consumption. Dependence on imported fuel leaves many countries vulnerable to possible disruption in supplies, which leads to physical hardships and economic burdens. The volatility of oil prices poses great risks for world’s economic and political stability, with unusually dramatic effects on energy importing developing nations. Renewable energy, including biofuels can help to diversify energy supply and energy security.

Improved social well being: A large part of population, mostly in rural areas does not have access to energy services. The increased use of renewable (mainly biofuels) in rural areas is closely linked to poverty reductions because greater access to energy services can:
· Improve access to pumped drinking water. Potable water can reduce hunger by allowing for cooked food (95% of food needs cooking).
· Reduce the time spent by women and children on basic survival activities (gathering firewood, fetching water, cooking etc).
· Allow lightening which increases security and enable night time use of educational media and communication at school and home.
· Reduce indoor pollution caused by firewood use, together with reduction in deforestation.

Lack of access to affordable energy services among the rural poor seriously affects their chances of benefiting from economic development and improved living standards. Women, older people and children suffer disproportionately because of their relative dependence on traditional fuels and their exposure to smoke from cooking, the main cause of respiratory diseases. Electricity through transmission lines to many rural areas is unlikely to happen in the near future, so access to modern decentralized small-scale energy technologies, particularly renewables (including biofuels), are an important element for effective poverty alleviation policies. A programme that develops energy from raw material grown in rural areas will go a long way in providing energy security to the rural people.