Nitin Gadkari: Bioenergy Can Replace 50% of Fossil Fuels in 5 Years

K N Mishra

    17/Jun/2025

What’s covered under the Article:

  • Gadkari asserts bioenergy can replace 50% of India’s fossil fuel use in 5 years, aiding the carbon neutrality goal.

  • Ethanol, methanol, biodiesel, LNG, CNG, and hydrogen are key in reducing Rs. 22 lakh crore of fossil fuel imports.

  • The auto industry contributes ₹3 lakh crore in exports and over 4.5 crore jobs, powering innovation and green fuel use.

In a significant move toward energy self-reliance and environmental sustainability, Union Minister of Road Transport & Highways, Mr. Nitin Gadkari, has declared that bioenergy has the potential to replace up to 50% of India’s fossil fuel consumption within the next five years. This bold vision was presented at the 'Bhoomipujan programme' of the Indian School for Design of Automobiles, where the Minister addressed critical challenges posed by India's current fuel usage patterns and laid out a blueprint for transformation in the transport sector.


Transport Sector’s Carbon Burden and the Push for Bioenergy

Mr. Gadkari began by stating that the transport sector is responsible for nearly 40% of India’s total air pollution, primarily driven by its heavy reliance on fossil fuels. With India’s annual fossil fuel import bill standing at ₹22 lakh crore (US$ 256.02 billion), the need for alternative fuels is not just environmental—it’s also deeply economic.

The Minister asserted that through strategic innovation, investment in research, and a robust policy framework, bioenergy solutions could replace up to half of fossil fuel usage, significantly easing the country’s fiscal and ecological burdens.


Biofuel Solutions on the Table

India is actively exploring and investing in several alternative fuel sources, many of which are bio-based or renewable in nature. Mr. Gadkari detailed an ambitious line-up of fuel alternatives that could drive India toward its decarbonisation goals:

  • Ethanol: Already being blended into petrol at a 20% rate, it represents India’s most immediate alternative fuel success.

  • Methanol: Offers promise as a low-emission fuel.

  • Biodiesel: Derived from plant oils and animal fats, it can significantly reduce lifecycle greenhouse gas emissions.

  • Bio-LNG: Suitable for long-haul freight transport and intercity buses.

  • Compressed Natural Gas (CNG): Cleaner than petrol or diesel, and increasingly popular in urban transport fleets.

  • Electric Vehicles (EVs): Central to India’s e-mobility strategy.

  • Hydrogen Fuel Cells: A futuristic solution under active development in India for heavy-duty and commercial transport applications.


Call to Action for the Automobile Sector

Addressing India’s automobile industry, Mr. Gadkari stressed the urgent need to ramp up research and development in clean fuel technologies. The automobile sector, he said, is both a major contributor to pollution and a key enabler of India’s green transition.

He urged manufacturers to go beyond conventional practices and invest in fuel innovation, emphasizing that innovation in fuels can become India’s USP (unique selling proposition) in the global market. "We must move from a pollution-oriented to a solution-oriented approach," he noted.


The Economic Muscle of India's Automotive Industry

India’s automotive sector is already a cornerstone of the national economy, and according to Mr. Gadkari:

  • It exports over ₹3 lakh crore (US$ 34.91 billion) worth of vehicles and components.

  • It employs over 4.5 crore people, directly and indirectly.

  • It is home to world-leading manufacturers like Bajaj Auto, TVS, and Hero, all of whom export nearly 50% of their production to global markets.

This global positioning offers India a unique advantage: leadership in clean mobility. The industry has the potential to export not just vehicles, but also clean energy technologies, positioning India as a global hub for sustainable transport innovation.


A Step Towards Carbon Neutrality

Mr. Gadkari reiterated that these fuel transitions are aligned with Prime Minister Mr. Narendra Modi’s vision of achieving carbon neutrality. This transformation will be fueled by:

  • Policy frameworks supporting alternative fuels.

  • Incentives for green vehicles and R&D.

  • Skill development and institution building, like the newly initiated Indian School for Design of Automobiles, which will train engineers, designers, and technicians in future-forward automotive technologies.

The school is expected to serve as an incubator for fuel innovation, EV development, and vehicle design, making India not just a producer, but a knowledge leader in clean mobility solutions.


Public and Private Sector Collaboration Is Key

Mr. Gadkari also called on public-private partnerships to scale these energy alternatives, especially in rural and semi-urban areas where adoption lags. He mentioned successful pilot programs for bio-CNG buses and ethanol-run scooters, which could be scaled across districts with the right financing and infrastructure.

He acknowledged that success would depend on collaboration across ministries, such as Energy, Agriculture (for feedstock supply), Science & Technology (for R&D), and Finance (for subsidies and investments).


Looking Forward: India as a Global Leader in Bioenergy

As climate change, energy dependence, and air quality become increasingly urgent concerns, India’s efforts to adopt bioenergy and alternative fuels offer a compelling path forward. With a strong policy push, industry engagement, and institutional support, the country is well-positioned to:

  • Reduce fossil fuel imports by up to 50%

  • Lower urban air pollution significantly

  • Create lakhs of new jobs in the bioenergy and EV ecosystem

  • Strengthen rural incomes through biofuel feedstock demand

  • Become a global exporter of clean fuel technologies


Conclusion: The Green Mobility Revolution Is Underway

Mr. Nitin Gadkari’s vision for bioenergy as a 50% substitute for fossil fuels within five years is both ambitious and achievable. With rising ethanol blending, emerging hydrogen pilots, and growing EV adoption, the building blocks for a green transport revolution are in place.

His call for industry, academia, and policymakers to collaborate sets the tone for the next phase of India’s energy and automotive transition. As climate goals and economic resilience converge, bioenergy and alternative fuels are no longer optional—they are imperative for a sustainable and self-reliant India.


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