This post is a part of DIL Intelligence series from Energy Alternatives India (EAI), India’s leading climate-tech consulting firm.
DIL stands for Decarbonization for India’s Leaders and provides comprehensive market intelligence and updates to Indian corporate leaders on prominent decarbonization efforts across the Indian industrial ecosystem. DIL is provided by EAI’s strategy consulting team. More about our consulting from here.
The market for biofuels and electric vehicles (EVs) in India’s industrial sector is witnessing significant growth. The Indian biomass market, which includes biofuels, is projected to reach INR 32,000 crore by FY2030-31. Specifically, the biodiesel market in India is expected to reach US$ 643.0 Million by 2028, growing at a CAGR of 9.36% during 2023-2028. On the other hand, the electric vehicle market in India was valued at USD 220.1 million in 2020 and is predicted to grow at a CAGR of 94.4% from 2021 to 2030. By 2030, electric vehicles could account for over 40% of India’s automotive market and generate over $100 billion in revenue.
Vedanta Lanjigarh, a part of Vedanta Aluminium and a premier producer of metallurgical grade alumina, is actively working on decarbonizing its operations. Using biodiesel as a green fuel alternative for its commercial vehicles, also inducted 3-ton and 5-ton electric forklifts at its alumina refinery in Lanjigarh, Odisha, adding to a fleet of 44 electric lithium-ion forklifts across its operations. Vedanta Aluminium has committed to decarbonizing 100% of its Light Motor Vehicle (LMV) fleet by 2030 and 75% of its mining fleet by 2035. Aiming to strengthen their position as an ESG leader.
UltraTech Cement, a leader in the Indian cement industry, is actively pursuing decarbonization strategies that incorporate biofuels and electric vehicles (EVs). They have been pioneering biomass co-processing, utilizing over 12 million tonnes of waste materials like agricultural residue and municipal solid waste in 2021 alone. Also exploring the use of bio-petroleum coke, a bio-based alternative to petroleum coke derived from sustainable sources like vegetable oils.
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In the short term, both biofuels and EVs can deliver tangible results. Biofuel co-processing, like the one implemented by UltraTech, can lead to measurable CO2 reductions. Their achievement of a 6 million tonne reduction in a single year highlights the immediate impact achievable.
Investing in second-generation and advanced biofuels, which offer reduced emissions and improved efficiency compared to first-generation options. Partner with farmers, waste management companies, and research institutions to secure reliable feedstock sources and develop efficient biofuel production processes.
The combined approach of biofuels and EVs holds the potential for deep and long-term decarbonization, contributing significantly to achieving climate goals and building a more sustainable future. However, addressing challenges like sustainable sourcing of biofuels, EV infrastructure development, and potential land-use impacts is crucial for long-term success.
This post is a part of DIL Intelligence series from Energy Alternatives India (EAI), India’s leading climate-tech consulting firm.
DIL stands for Decarbonization for India’s Leaders and provides comprehensive market intelligence and updates to Indian corporate leaders on prominent decarbonization efforts across the Indian industrial ecosystem. DIL is provided by EAI’s strategy consulting team. More about our consulting from here.
