India and Brazil Strengthen Energy Cooperation, Focus on Biofuels

Why in the news?

India and Brazil held high-level talks on enhancing energy sector collaboration, focusing on investments, biofuels, and sustainable aviation fuel (SAF), aiming to boost trade and advance global decarbonization efforts.

India-Brazil Energy Cooperation: Strengthening Ties:

  • Indian Petroleum Minister Hardeep S Puri visited Brazil from Sept 19-21, 2024, invited by Brazilian Mines & Energy Minister Alexandre Silveira.
  • The focus was on enhancing Indian investments in Brazil’s oil and gas sector.
  • Both nations explored new investment avenues and trade mechanisms to boost bilateral trade.

Biofuels & Sustainable Aviation Fuels (SAF) Collaboration:

  • Both countries, founding members of the Global Biofuels Alliance, emphasised biofuels’ role in energy transition.
  • India and Brazil discussed collaboration on Sustainable Aviation Fuels (SAF), leveraging ethanol and biodiesel production infrastructure.
  • The partnership aims to address SAF production challenges like feedstock, cost, and infrastructure.

Future Initiatives and Global Impact:

  • Agreed to co-host the India-Brazil Clean Cooking Ministerial Meeting in February 2025.
  • Discussed cooperation in deep offshore exploration and critical minerals value chains.
  • Joint efforts will strengthen energy security, foster innovation, and support global decarbonization, especially in aviation.

About the Global Biofuels Alliance (GBA):

  • About: Initiative to form an alliance of governments, organisations, and industry for biofuel adoption.
  • Origin: India, Brazil, and the U.S. lead the alliance, producing 85% of the world’s biofuels.
  • Members: 19 countries and 12 international organisations have joined GBA.
  • Aim: Promote cooperation and enhance sustainable biofuel use, especially in transportation.
  • Focus Areas:
    • Strengthen biofuel markets.
    • Facilitate global biofuels trade.
    • Share policy lessons and best practices.
  • Collaboration: Works with the Clean Energy Ministerial, Bio-future Platform, Mission Innovation Bioenergy, and the Global Bioenergy Partnership (GBEP).

Steps Taken by India to Promote Biofuel Production:

  • E5 Program: Pilot project for 5% ethanol blending in fuel.
  • National Biodiesel Mission (2003): Aimed for 20% biodiesel blending by 2011-12.
  • National Policy on Biofuels (2009): Set a non-mandatory target of 20% blending for both biodiesel and bioethanol by 2017. Revised in 2018 for 20% bioethanol and 5% biodiesel blending by 2030.
  • GST Reduction: Reduced GST on ethanol for the Ethanol Blending Programme (EBP) from 18% to 5%.
  • SATAT Scheme: Encourages entrepreneurs to set up Compressed Bio-Gas (CBG) plants.
  • PM JI-VAN Yojana: Launched in 2018 to support 2G bioethanol production.

Sources Referred:

PIB, The Hindu, Indian Express, Hindustan Times