Indian biofuel sector is expected to witness a robust growth in future due to flourishing automobile industry and increasing needs to reduce dependency on oil imports.
According to the news published by
biofuels international, booming automobile industry and increasing energy security concerns will drive the biofuel demand in India.
It is expected that by 2018, ethanol consumption in India will exceed 700 Million Gallon mark. Moreover, the country imported over 128 Million Tonnes of crude oil in 2008-09, depicting a 42% increase over the import level of 2003-04.
Furthermore, petrol-run passenger cars are expected to increase in number, reaching 1.5 Million Units by 2012-13 end, thereby symbolizing immense opportunities for the flex-fuel cars. This will open further growth avenues for the biofuel industry.
India ranks among top five countries in the world in primary energy consumption and oil accounting for a major share of India’s energy mix, it is dependent on imports due to limited oil reserves.
The demand for vehicles has been consistently growing in India, and is projected to remain buoyant in future. This can be attributed to the thriving Indian economy, an increase in the number of middle class families, relatively affordable bank credit, and the steady arrival of latest automobile models in the market.
In an effort to minimize the dependence on oil imports, the government is injecting enormous amount of capital and resources in the development of biofuel sector. The report also says that the sector needs continuous development in wake of impulsive oil prices and production levels.
As per the recent study from Hart’s Global Biofuels Center, India is expected to be a major new contributor, along with Indonesia, France, China and other countries, to the growth of global biofuel industry during 2009-2015. According to this study, ethanol production in Asia-Pacific will tremendously grow in near future, probably representing almost 20% of global ethanol production by 2015.
According to a Research Analyst at
RNCOS, “Due to continuous increase in oil imports and fluctuating oil prices in international market, the Indian biofuel sector is projected to experience a robust growth in coming years. Further, although ethanol at present dominates the country’s biofuel sector, biodiesel is expected to soon enter the commercial stream.”
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