India saved Rs 1.06 lakh cr in foreign exchange from biofuel blending: Puri

India, the world's third largest oil importing and consuming nation, saved Rs 1.06 lakh crore in foreign exchange during the last decade by mixing biofuels in petrol, Oil Minister Hardeep Singh Puri said on Monday.

Speaking at the CII Bioenergy Summit here, he said the percentage of ethanol, extracted from sugarcane and other biomass, blending in petrol has risen from 1.53 per cent in 2014 to 15 per cent.

Encouraged by these results, the government has advanced its target to 20 per cent blending for 2025, he said.

"From 2014 to August 2024, ethanol blending (in petrol) has generated foreign exchange savings of Rs 1,06,072 crore, reduced CO2 emissions by 544 lakh tonnes, and achieved crude oil substitution of 181 lakh tonnes," he said.

Additionally, the government has set an ambitious targets for Sustainable Aviation Fuel (SAF), aiming for 1 per cent blending in 2027 and 2 per cent in 2028, positioning India as a leader in bio-mobility.

Emphasising on India's robust economic growth, he said the country will drive 25 per cent of global energy demand over the next two decades.

Bioenergy will be crucial in meeting this demand while advancing climate goals and rural development.

Currently valued at USD 44 billion (as per Wood Mckenzie), the minister said that the bioenergy market is projected to grow to USD 125 billion by 2050. If global net-zero targets are achieved, this figure could surge to $500 billion, he added.

India has more than 750 million tonnes of available biomass, with about two-thirds being used for domestic purposes such as cattle feed and compost fertiliser.

The International Energy Agency (IEA) forecasts a growth potential of 3.5 to 5 times for biofuels by 2050 due to net zero targets, presenting a substantial opportunity for India.