“Beyond E20: Can India set the global standard in biofuels?”

India Business & Trade spoke with Mr. Dalbir Singh Mahal, Director & CEO at Jap Innogy to understand how India can transition from being a cost-competitive player to a true global innovation leader in biofuels. Drawing on key policy updates, global benchmarks, and industry insights, here’s a comprehensive look at where India stands—and what it will take to lead.

Image credit: Freepik

IBT: Beyond cost, what global strengths must India build to lead in biofuel technology and innovation?

D.S Mahal: India must go beyond affordability and focus on building a robust innovation ecosystem. This includes scaling up second- and third-generation biofuel technologies—such as cellulosic ethanol, algal fuels, and waste-to-fuel platforms—and fostering international tech alliances through the Global Biofuels Alliance (GBA).

To lead globally, India must also ensure end-to-end traceability, digital integration, and international certification readiness. Market creation beyond domestic blending—especially in hard-to-abate sectors like aviation and shipping—is key. Coupled with deep research pipelines, skilled talent, and digital supply chains, these capabilities will define India’s leadership in the $200 billion global biofuel market.

IBT: How does India’s E20/E30 readiness compare with global benchmarks like Brazil and the EU?

D.S Mahal: While India has made rapid strides—achieving 20% blending in 2025 against a 2030 target—gaps remain compared to Brazil. Brazil already mandates E27, with 92% of new cars flex-fuel ready, and widespread consumer adoption. India’s fleet compatibility is still below 5%, and depot readiness for E20/E30 needs major upgrades.

India must now align vehicle policies (mandating E20 compatibility for all new petrol cars from April 2026), upgrade over 2,000 fuel depots and 30,000 tankers to E20 standards, and introduce pricing incentives (₹1.5–2.0/litre) to encourage consumer adoption.

IBT: Which global policies or financing models could India adopt to attract ESG and institutional investors?

D.S Mahal: India can learn from Brazil’s RenovaBio program, which uses tradable CBIO carbon credits to reward lifecycle emissions savings. Similar mechanisms—like Green Ethanol Certificates—can mobilize ESG capital.

Additionally, IFC-style blended finance, using concessional loans and first-loss guarantees, can de-risk 2G/SAF projects. India should also build transparent, verifiable impact frameworks aligned with UN PRI and integrate digital MRV (Monitoring, Reporting & Verification) tools to boost investor confidence.

IBT: What international best practices can help India turn biofuel demand into a sustainable income for farmers?

D.S Mahal: India must adopt integrated approaches that align with global best practices:

• Crop Diversification: Promote rotation of biofuel crops with food crops, as practiced in Brazil and the US, to increase land productivity and stabilize farmer incomes.

• Guaranteed Offtake: Introduce long-term offtake agreements with stable pricing to reduce risk.

• Ownership Models: Encourage farmer cooperatives with equity stakes in bio-refineries.

• Residue Monetization: Scale waste-to-energy programs like SATAT; provide equipment subsidies and guaranteed procurement for agricultural waste.

• CBIO Revenue Sharing: Brazil’s model of directing 60% of credit proceeds to farmers is a template worth replicating.

• Blockchain-enabled traceability: Ensures premium market access and compliance with global standards.

IBT: How are AI, IoT, and blockchain transforming global biofuel supply chains, and how can India leverage them?

D.S Mahal: Advanced digital tools are reshaping biofuel supply chains:

• AI and IoT are being used globally to optimize feedstock yields, predict refinery maintenance needs (cutting downtime by up to 20%), and improve algae-based fuel efficiency.

• Blockchain ensures full traceability of feedstock and production, a key requirement under EU and ICAO frameworks.

India should accelerate pilot programs—like “Bio-Chain”—to digitally track SAF feedstocks, integrate soil data with carbon calculators, and use real-time analytics to improve efficiency and sustainability claims.

IBT: What global standards should India meet to compete in Sustainable Aviation Fuel (SAF)?

D.S Mahal:  To compete internationally, India must align with:

• ASTM D7566 and D1655 standards for SAF production and blending.

• CORSIA guidelines requiring at least 10% lifecycle GHG reductions and traceability.

• EU SAF mandates (2% by 2025, 6% by 2030, 70% by 2050) that set the export benchmark.

India has set targets of 1% SAF blending by 2027 and 2% by 2028. Fast-tracking certification for feedstocks like Jatropha and Pongamia and investing in HEFA-SPK and ATJ pathways at IOCL will be crucial.

IBT: How can India align with international certification systems like ISCC or RSB to ensure sustainability credibility?

D.S Mahal: India’s certification systems must align with the stringent standards of ISCC and RSB:

• GHG methodology: Adopt GREET-India calculator (in development) for lifecycle emission estimates.

• Social safeguards: Integrate fair labor, land rights, and FPO codes of practice.

• Digital traceability: Implement blockchain-based mass balance systems, like the proposed Bio-Chain ledger.

Such alignment will be essential to access premium markets and comply with EU RED III and other import rules.

IBT: What can India Inc. learn from global corporations adopting biofuels in their net-zero strategies?

D.S Mahal: Leading global firms offer clear lessons:

• Asset repurposing: BP’s Kwinana refinery now produces SAF.

• Feedstock flexibility: TotalEnergies uses waste oils for large-scale SAF production.

• Flex-hybrid integration: Toyota’s E100 hybrid cuts well-to-wheel emissions more effectively than some EVs in Brazil.

Indian corporates should invest in integrated 1G-2G hybrid biorefineries, next-gen feedstocks, and multi-sector partnerships that enable full value-chain transformation. Export readiness will depend on certification, circularity, and scale.

IBT: How will global geopolitics—EU rules, grain bans—impact India’s biofuel security and exports?

India faces real risks from:

• EU regulatory tightening (EUDR, RED III), which may block non-compliant biofuels.

• Grain export bans (e.g., rice, maize) by other nations, which have inflated ethanol input costs by up to 25%.

India must:

• Diversify feedstocks toward waste and non-food biomass.

• Create a 5-million-tonne ethanol strategic reserve, akin to a petroleum buffer.

• Strengthen local supply chains to mitigate external shocks.

IBT: Which global policy or tech shift could most disrupt India’s biofuel landscape by 2030?

D.S Mahal: The convergence of digital traceability with carbon-intensity (CI) tariffs is likely to be the most disruptive.

By 2030, global markets may impose CI ceilings, allowing only low-emission fuels. Countries with real-time CI scoring, blockchain-verified supply chains, and AI-optimized operations will dominate. India must act now to develop digital MRV systems, mandate low-CI production, and build capacity to meet these evolving trade standards—or risk being shut out of premium markets.

---

Mr. D.S. Mahal is a seasoned clean energy expert and Global Leadership Award recipient with over 35 years of international experience across Asia, the Middle East, Africa, and China. He has held senior leadership roles in business development, operations, and innovation, including overseeing multi-billion-dollar mergers, acquisitions, and project delivery for a leading Dutch multinational.

He is the Founder of JAP INNOGY, an innovation-led company recognized for its gold medal-winning contributions to clean tech. Under his leadership, JAP INNOGY has developed feedstock-agnostic, next-generation biorefinery technologies with a focus on circular economy principles, carbon-neutral production, and renewable CO₂ valorization.

With a deep commitment to energy transition, Mr. Mahal brings together policy, technology, and industry to position India as a global hub for biofuel innovation. His vision is to create “Radiant Living” for current and future generations by driving sustainable energy solutions aligned with India’s 2047 energy independence and 2070 carbon neutrality goals.