Asian Development Bank approves $2.5M technical assistance for Indian advanced biofuels

December 7, 2020 |

In the Philippines, the Asian Development Bank (ADB) has approved a $2.5 million technical assistance (TA) to support advanced biofuel development in India. The grant is funded from the Asia Clean Energy Fund, financed by the Government of Japan under the Clean Energy Financing Partnership Facility, and the Republic of Korea’s e-Asia and Knowledge Partnership Fund.

Technical and financial barriers discourage commercial production of biofuels, such as the absence of technology standards, lack of feedstock supply chain mechanism, limited access to finance, and resultant high production costs and financial viability risks. The ADB’s TA will help address these obstacles and prepare for advanced biofuels’ commercial application and large-scale production.

The TA will support the development of advanced bioethanol, bio-compressed natural gas, and biodiesel plants to demonstrate the best practices for suitable feedstock, efficient conversion technology, and sustainable biofuel value chain. The TA will also support incorporating gender mainstreaming design in the feedstock value chain to promote the empowerment of rural women in agriculture.

To ensure biofuel business sustainability, holistic studies will be conducted in aid of establishing technical designs, effective business models, catalytic financing schemes, regulatory frameworks, and awareness programs. To boost advanced biofuel investments, ADB will collaborate with the Ministry of Petroleum and Natural Gas, the Oil Industry Development Board, and public financial institutions, such as the Indian Renewable Energy Development Agency and the National Bank for Agriculture and Rural Development. ADB will also work with public oil companies, including the Indian Oil Corporation Limited and the Hindustan Petroleum Corporation Limited.

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Category: Fuels

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