India Biodiesel Market Size And Report 2024-2032

India Biodiesel Market Analysis

The India Biodiesel Market is projected to grow to US$ 634.8 million by 2032, with a compound annual growth rate (CAGR) of 8.11% from 2024 to 2032. According to Renub Research, the market was valued at US$ 314.7 million in 2023. Biodiesel,India Biodiesel Market an alternative fuel made by combining organic oils with alcohol, is gaining traction as a sustainable substitute for conventional petroleum products in both transportation and industrial applications. Biodiesel is favored due to its environmental sustainability, and fire safety benefits, and is a vital tool in reducing India’s dependency on crude oil imports.

Key Growth Drivers in the India Biodiesel Market

1. Growing Demand for Biodiesel in Transportation

India’s rapid economic development and population growth are driving an increase in energy demand. The transportation sector, a significant energy consumer, relies heavily on petroleum, with 411.8 million vehicles projected on Indian roads by 2030. The rising demand for fuel will present challenges, but biodiesel is poised to become a crucial solution for reducing dependence on fossil fuels and mitigating the environmental impact of gasoline and diesel-powered vehicles. The increasing adoption of biofuels in transportation is expected to boost the growth of the India biodiesel market.

2. Reducing Crude Oil Imports

India ranks as the third-largest oil consumer globally, following the U.S. and China. With increasing oil demand, India’s dependence on crude oil imports has also surged, rising to 212.2 million tonnes in 2021-2022. This high reliance on imports poses significant economic risks. Biodiesel, as a home-grown fuel, presents an excellent alternative to imported fossil fuels. Government policies, such as the Ethanol Blending Programme (EBP), aim to reduce carbon emissions and bolster energy security by promoting biofuel use, further accelerating biodiesel market growth.

3. Government Initiatives and Policies

Several Indian government initiatives are supporting the development of biodiesel and other biofuels. For instance, the Bureau of Indian Standards (BIS) is aligning its standards with national green goals and the Global Biofuel Alliance (GBA). Programs like SATAT, which promotes the production of Compressed Biogas (CBG), and Viable Gap Funding (VGF) for 2G bioethanol under the Pradhan Mantri JI-VAN Yojana, are further driving market expansion. The Indian government’s push to reduce crude oil imports through biofuel blending has become a key driver for the industry.

Industry Updates

• Aemetis, in September 2023, expanded its biodiesel production capacity in India to 60 million gallons annually, ahead of schedule. This expansion will help meet the growing demand from India’s Oil Marketing Companies (OMCs).
• In December 2022, Kotyark Industries Limited acquired Yamuna Bio Energy Private Limited, strengthening its position in biodiesel production.
• Indian Oil signed a letter of intent (LOI) with LRE Petroleum in December 2021 to set up a biodiesel plant using used cooking oil (UCO). The facility, in Karnal, Haryana, will produce 4 million liters of biodiesel annually and reduce carbon emissions by 78% compared to traditional diesel.

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Market Segmentation

Applications

1. Fuel
2. Power Generation
3. Others

Feedstock

1. Vegetable Oil
2. Animal Fats

Competitive Landscape

The India biodiesel market features major players such as Archer Daniels Midland Company, FutureFuel, Neste, Renewable Energy Group, Inc., Bunge Global SA, Wilmar, and Shell. These companies are investing in technology, expanding their production capacities, and exploring innovative feedstocks to strengthen their market position.

Company Analysis

1. Archer Daniels Midland Company
2. FutureFuel
3. Neste
4. Renewable Energy Group, Inc.
5. Bunge Global SA
6. Wilmar
7. Shell