India can replace gasoline imports in 2020

According to a latest report, India, the second fastest growing automobile market in the world, will be able to replace imported gasoline by 2020 if domestic policies and infrastructure are in place and they actively encourage the development of green fuel.

In a report yesterday, Farooq Abdullah, India’s Minister of Renewable Energy, pointed out that India uses raw materials such as bagasse, rice husks, and sugar waste without relying on food crops and cultivating farmers’ farmland. The potential for the production of ethanol from substances can reach 50 billion liters (13 billion gallons). Bloomberg New Energy Finance's data report for Novozymes A/S, the world’s largest industrial enzyme manufacturer, believes that this will be enough to replace 86% of domestic gasoline demand in India and will eliminate its dependence on imported oil. .

The report also pointed out that the third largest energy consumer in Asia - India, as the increase in national income prompted a sharp increase in domestic car demand, gasoline consumption surged. But 2/3 of the gasoline consumption in India comes from two-wheelers, such as motorcycles.

If no other alternative energy source is available, assuming that the price of crude oil is US$100/barrel, India will spend approximately US$19.4 billion on gasoline imports by 2020, the report said.

On the contrary, the report predicts that if the ethanol industry develops, it will likely generate up to $20 billion in fiscal revenue, plus $1.6 billion in ethanol exports.

The report shows that the biggest difficulty in India is the lack of infrastructure for collecting and transporting agricultural residues. The government also does not have explicit development indicators or punitive regulations to encourage its development.