In India, Autocar Profesional reported that India Ratings and Research (Ind-Ra) has projected that achieving the government’s 5% biodiesel blending target by 2030 will require an investment of $287 million.
The economic feasibility of this target depends on the development of a robust supply chain and government incentives, such as tax subsidies, to improve uptake by oil marketing companies (OMCs), the report stated.
According to Ind-Ra, progress in biodiesel blending has been slow, with the blending rate reaching only 0.6% in fiscal year 2025 due to limited investments and challenges in the collection of used oil. Companies with integrated edible oil refineries are expected to be better positioned to expand capacity in the coming years, it added.
The 5% biodiesel blending target is part of India’s National Policy on Biofuels, which also includes a 20% ethanol blending target for petrol. These measures are aimed at reducing fossil fuel dependence and promoting renewable energy.
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