Parliament Question: Expansion of India’s Refining and Biofuel Capacity

**Executive Summary** This document is the response to Lok Sabha Unstarred Question No. 40, addressing the expansion of India's refining and biofuel capacity. It outlines plans to increase refining capacity to meet future energy needs, initiatives to promote clean energy alternatives, and the potential impact on energy security and climate commitments. The response indicates that investment and employment estimates through such projects by 2047 cannot be determined. **Key Points / Main Content** * **Refining Capacity Expansion:** * The current total refining capacity of India is 258.1 Million Metric Tonne Per Annum (MMTPA). * This capacity is projected to increase to 309.5 MMTPA by 2030. * The Petrochemical Intensity Index (PII) of public sector oil refineries is anticipated to increase from 4.1 to approximately 9.3 upon completion of ongoing and planned refinery projects. * **Promotion of Biofuels, Green Hydrogen, and LNG:** * Government initiatives include achieving 20% ethanol blending under the Ethanol Blending Programme (EBP) and broadening the scope of feedstock. * The Pradhan Mantri Jaiv Indhan-Vatavaran Anukool Fasal Awashesh Nivaran (PM JI-VAN) Yojana has been launched to provide financial assistance for setting up projects for advanced biofuels, including Sustainable Aviation Fuel (SAF). * The Sustainable Alternative Towards Affordable Transportation (SATAT) scheme has been launched for promotion of Compressed Biogas (CBG). * Schemes like BAM (Biomass Aggregation Machinery) and DPI (Direct Pipeline Infrastructure) support biomass aggregation and connect CBG plants to existing pipeline networks. * The National Green Hydrogen Mission (NGHM) aims for the production of 5 MMTPA green hydrogen by 2030. * Steps are being taken to augment LNG availability, including establishing LNG infrastructure such as terminals and stations. * **Impact on Energy Security and Climate Commitments:** * Biofuels, green hydrogen, and LNG have the potential to reduce emissions in key sectors. * Adoption of cleaner fuels can reduce overall emission intensity and supports the transition to a low-carbon economy, aligning with national climate goals and international commitments. * Estimates for investment and employment generated by these projects by 2047 are not currently available. **Impact Analysis** **Stakeholder: Public Sector Oil Refineries** * **Impact**: Refineries will see an increase in their Petrochemical Intensity Index (PII) from 4.1 to approximately 9.3 upon project completion. * **Action Required**: Ensure completion of ongoing and planned refinery projects to achieve the projected PII increase. **Stakeholder: Biofuel Industry** * **Impact**: Enhanced financial assistance through PM JI-VAN Yojana for setting up advanced biofuel projects, including Sustainable Aviation Fuel (SAF). Additionally, BAM and DPI schemes support biomass aggregation and connecting CBG plants. * **Action Required**: Utilize available schemes and financial assistance to establish and enhance advanced biofuel projects. **Stakeholder: General Public / Transportation Sector** * **Impact**: Increased availability of cleaner fuels like biofuels, green hydrogen, and LNG. This may lead to a decrease in emissions and align with climate goals. * **Action Required**: No immediate action; benefit from cleaner energy alternatives as they become available.

Key Entities Referenced