Indian Transport & Logistics

Biofuels: The next evolution of India's commercial trucking industry?

Biofuels: The next evolution of Indias commercial trucking industry?
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India's transportation sector, particularly the commercial trucking industry, faces varied challenges including air pollution, energy security, and fossil fuel dependence. To address these issues, India has taken a proactive step by leading the Global Biofuel Alliance (GBA) as the G20 Chair. This alliance aims to accelerate the global adoption of biofuels, which will significantly impact India's commercial trucking sector.

Reducing emissions, the need of the hour
Biofuels offer a vital solution to reducing emissions in India's rapidly growing commercial trucking industry. According to NITI Aayog, this sector is expected to quadruple by 2050 to meet increased demand due to urbanisation, population growth, e-commerce expansion, and rising incomes. Continued reliance on fossil fuels in this sector would lead to increased pollution, health hazards, energy costs, and emissions. To illustrate, if conventional trucks were used to meet growing demand, India would spend over US$1 trillion cumulatively on crude oil imports for diesel production by 2050.

Biofuels, derived from renewable sources like agricultural crops and waste materials, have the potential to significantly reduce carbon dioxide and particulate matter emissions compared to traditional diesel fuels. Additionally, biofuels align with India's climate goals by reducing its carbon footprint. The GBA's emphasis on sustainability and standards will directly ensure that biofuels used in the commercial trucking sector meet rigorous environmental and quality criteria.

Enhancing energy security
India's dependence on imported fossil fuels raises concerns about energy security. Promoting biofuels in the commercial trucking sector reduces this reliance, enhancing energy security. Biofuels are domestically produced and can be sourced from various feedstocks, reducing vulnerability to global oil price fluctuations.

Furthermore, biofuels diversify the transportation sector's energy mix. With the adoption of biofuels such as Bio-CNG and flex engines running on 100% ethanol, the commercial trucking industry becomes less susceptible to global oil market disruptions, increasing its resilience.

Creating opportunities, the green way
The GBA's commitment to advancing biofuel technology benefits both the environment and the economy. India's commercial trucking industry will witness job opportunities in the production, distribution, and maintenance of biofuel-powered vehicles and related infrastructure. Investing in biofuel research and development can also lead to innovations that enhance commercial truck efficiency and competitiveness. This technological advancement can drive the next phase of economic growth in India's road logistics sector.

Things to consider…
While the Global Biofuel Alliance offers promise for India's commercial trucking industry, challenges and considerations must be addressed. Ensuring the scalability and sustainability of biofuel production to meet the sector's growing demands requires investment in agricultural practices, waste-to-energy conversion technologies, and infrastructure development.

Additionally, the initial cost of biofuels may be higher than traditional diesel. Government incentives and subsidies may be necessary to encourage adoption and make biofuels more affordable for commercial truck operators.

The most significant benefit of this transition in the long term will be the reduction of India's logistics costs, which currently account for 16% of the country's GDP. The government aims to lower this figure to approximately 9% by the end of 2024.

By promoting cooperation, sustainability, and technological advancements, the Global Biofuel Alliance aims to reduce emissions, enhance energy security, and create economic opportunities. While challenges exist, the potential benefits of biofuels in the commercial trucking sector make it a promising solution for India's transportation challenges in the 21st century. With the GBA's leadership and commitment, India is poised to lead the way toward a more sustainable and resilient commercial trucking industry.

The views and opinions expressed in this article are those of the author and do not necessarily reflect the views of Indian Transport & Logistics News.

Karan Shaha

Karan Shaha

He is the chief executive officer and co-founder of the online transport market platform Vahak.

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