Blending tech and sustainability: The future of biofuels in India

Dr Saleem Akhtar Farooqui | August 7, 2025

In this exclusive interview with India Business & Trade, Dr. Saleem Akhtar Farooqui, Senior Principal Scientist at CSIR–Indian Institute of Petroleum, dives deep into India’s biofuel transformation—from ethanol blending targets to the vast potential of Sustainable Aviation Fuel (SAF). Drawing from global models and on-the-ground realities, he outlines a future-ready roadmap powered by AI, inclusive feedstock strategies, and digital innovation.

IBT: How can India align its domestic biofuel roadmap with global objectives under the Global Biofuel Alliance, and what lessons can be drawn from countries like Brazil and the US?

Dr. Saleem Akhtar Farooqui: India can align its domestic biofuel roadmap with global objectives under the Global Biofuel Alliance. The Global Biofuels Alliance (GBA) aims to rapidly scale biofuels adoption by promoting 2G ethanol from non-food feedstocks like agricultural residues, municipal waste, and algae, thus avoiding food-versus-fuel conflicts.

India can work following Brazil’s model, where 94% of new cars are FFVs. India can invest in FFV vehicles as we move towards higher ethanol blends.

The caution points for India are:

US corn ethanol raised grain prices. India should restrict edible feedstocks (e.g., use only surplus grains, not staple crops)
Brazil’s sugarcane requires high water. India must promote drought-tolerant crops (e.g., sweet sorghum) in dry regions.
US subsidies sometimes favored large agribusinesses. India’s incentives should target small farmers and waste-to-energy projects.

IBT: What are the key enablers needed to scale India’s biofuel industry—including PPP models, viability gap funding, FDI, and startup financing—and how can carbon markets and ESG instruments accelerate this growth?

Dr. Saleem Akhtar Farooqui: The key drivers for biofuel in India are environmental and energy security, i.e., enabling the domestic feed supply chain to produce energy and fuel. Based upon the technologies currently approved by ASTM for the biojet fuels production, Biomass, Vegetable oils, TBO, UCO, Bio-alcohols, sugars, etc., are the major feedstocks required for producing Biojet fuels.

The key enablers needed to scale India’s biofuel industry

Partnership with agri-cooperatives for crop residue collection for the Alcohol to Jet pathway and oil collectors and aggregators for the HEFA pathway.
Joint ventures for Biogas/bio-refineries (e.g., SATAT scheme).
Establishment of technical hubs with leading R&D institutes for 2G ethanol. This would help in technology development to address the food vs fuel security.

The VGF could help investors invest in new technological pathways. e.g., CSIR-IIP SAF HEFA pathway requires ~300 Crores of investment for SAF production. There is a viability gap in the commercial production. Economies of scale for HEFA/ATJ processes and policy interventions such as subsidies, feedstock incentives, VGF funding, and differential fuel pricing may accelerate the adoption of Biojet fuels in India.

IBT: With E20/E30 blending targets on the horizon, is India’s vehicle fleet, fuel infrastructure, and consumer base truly ready for scale-up?

Dr. Saleem Akhtar Farooqui: India’s push for 20% ethanol (E20) petrol by 2025 is ambitious, and the progress is phenomenal, but there are some critical challenges. Only 20% of current vehicles, mostly post-2022 models, are E20-ready—most older vehicles risk damage, and affordable flex-fuel options are limited. Upgrading vehicle fleets and incentivizing automakers are urgent needs. Regarding fuel infrastructure, improvements to pumps and pipelines are lagging behind, and many gasoline pumps need to be retrofitted because of the risk of tank corrosion. There are currently very few automated blending facilities for the supply of E20.

Consumers are concerned about fuel efficiency drops and engine compatibility issues, which hurt acceptance; sustained price advantages and clear information campaigns are needed to win trust. Ethanol supply must double by 2025, but dependence on sugar-based feedstocks leaves supply vulnerable to monsoon swings, while advanced waste-based (2G) ethanol production is seriously behind target. Policy mandates are clear, but achieving full readiness—especially for E30 blends by 2030—depends on major investments, R&D push, and synchronized implementation. Accelerating infrastructure upgrades, diversifying feedstocks, and digitally integrating supply chains, vehicles, and farms are essential for India to meet its blending goals, unlock billions in oil savings, and create millions of rural jobs.

IBT: How can biofuel demand be leveraged to empower rural farmers and create decentralized income streams through feedstock aggregation and waste monetization?

Dr. Saleem Akhtar Farooqui: The Biofuels pricing mostly depends on the cost of feedstock available. e.g., for SAF, the cost of HEFA pathway SAF is ~70% dependent on the feedstock price. Farmers primarily produce these feedstocks. India’s democratized feedstock aggregation model would empower the small farmers and rural communities in the biofuel value chain through technology, decentralization, and inclusive policies.

Cooperatives record real-time feedstock flows and automate payments via smart contracts, cutting out middlemen, which are important points to be addressed for strengthening the biofuel market. Through mobile apps, AI-powered platforms could help farmers swap crop residues for bio-fertilizer or energy credits.

Village hubs, with solar-powered facilities at the collection centres, could store biomass before sending it to bio-refineries using GPS-tracked logistics. Women’s Self-Help Groups (SHGs) could be enabled to use waste monetization kits to collect and sell crop residues at local hubs.

IBT: What role can AI, IoT, and blockchain play in transforming India’s biofuel supply chain from feedstock to fuel, and how can digitalization enhance sustainability and efficiency?

Dr. Saleem Akhtar Farooqui: Integrating AI, IoT, and blockchain holds transformative potential for India’s biofuel supply chain, addressing challenges in feedstock management, processing, logistics, sustainability, and policy compliance.

Some of the examples are:

IoT sensors and drones monitor soil health and crop growth in real time. This would also help trace the feedstock, which would help in CO2 audits. E.g., SAF production plant needs CORSIA audits, which would be easy if the land usage, tracing of the feedstock, and transportation incurred during the feedstock delivery upto the production site are recorded.
AI predicts optimal harvest times, matches supply with demand, and reduces waste.
Blockchain ensures transparency in sourcing and automates farmer payments with smart contracts.

IoT GPS/RFID tags monitor transport and storage conditions, which could prevent wastage and the black market.

AI and blockchain enable circular economy initiatives by tracking waste valorization and emissions.
Small farmers benefit from fair pricing and instant payments through blockchain.

IBT: Can India emerge as a global supplier of Sustainable Aviation Fuel (SAF), and what strategic actions are needed across policy, technology, and certification to unlock this opportunity?

Dr. Saleem Akhtar Farooqui: India holds significant advantages and strategic opportunities to become a leading global supplier of sustainable aviation fuel (SAF). India is a huge consumer of Cooking Oil. If the waste oil is collected, the potential collection could reach up to 3 million tons, translating to ~1.5 million tons of SAF. This would only cater to ~20% of the SAF blending mandate via the HEFA route. Additionally, India is an agriculture-dominated country, so other routes, such as alcohol-to-jet routes, could contribute significantly to bifuel production.

By combining mandates + incentives, prioritizing waste-based feedstocks, and building integrated supply chains, India could supply 10-15% of global SAF by 2035. The time for policy action is now, as global aviation’s net-zero targets create a $150B+ SAF market opportunity by 2050. The existing refinery infrastructure through Oil Marketing Companies (IOCL, BPCL) can retrofit SAF co-processing.

With mandates, robust incentives, tech partnerships, and certification alignment, India can unlock a $50 billion green aviation industry, significantly reducing emissions while fueling global sustainable flights.

IBT: What should a future-ready, inclusive, and sustainable biofuel strategy look like for India—balancing food security, innovation, rural livelihoods, and environmental safeguards?

Dr. Saleem Akhtar Farooqui: India’s biofuel strategy should prioritize sustainability and equity by strictly balancing feedstock production with food security. This should be achieved through a multi-tiered approach.

Prioritizing agricultural residues (e.g., rice straw) and non-edible oilseeds (e.g., Pongamia, Used Cooking Oil, Jatropha, or other tree-borne oils specific to a particular state) over food crops. GIS-based land zoning directs cultivation to degraded lands, avoiding fertile farmland. Dual-purpose crops (e.g., sweet sorghum) serve food and fuel needs. This would help in the CO2 auditing.
The government should prioritize cost-effective HEFA pathways using waste oils; scale cellulosic ethanol-to-jet technologies for advanced routes like gasification and power-to-liquids. Develop integrated SAF hubs near airports to reduce logistics costs.

Dr. Saleem Akhtar Farooqui is a Senior Principal Scientist at CSIR–Indian Institute of Petroleum, Dehradun, where he brings deep expertise in catalyst development, process intensification, and fuel upgrading technologies. With a PhD in Chemical Engineering from IIT Delhi, an M.Tech from IIT Kanpur, and a B.Tech from AMU, Dr. Farooqui has built a distinguished career at the intersection of advanced fuel research and environmental sustainability.

His work focuses on converting petroleum fractions into cleaner, more energy-efficient fuels that meet evolving global emission standards. Backed by a strong portfolio of scientific publications and patents, he has significantly contributed to innovations in clean energy and refinery processes. Dr. Farooqui’s ongoing research is shaping India’s transition toward greener fuel technologies and a more sustainable energy future.