Context:

• The state of Punjab is poised to become a national leader in biofuel production with the recent unveiling of the Punjab State Policy for Biofuels.

Key Points:

• This initiative aims to fulfill 20% of the state's total fuel demand through biofuels by the year 2035. The policy was announced by the state's Minister for New and Renewable Energy Sources, during a discussion on the future of India's energy sector and sustainable agricultural practices.

Objectives of the Biofuel Policy

The Punjab State Policy for Biofuels is designed to:

• Utilize agricultural residues: The policy focuses on converting agricultural waste into biofuels, specifically targeting the recycling of at least 50% of agricultural and other waste. This is expected to improve soil organic content by up to 5%, thereby enhancing soil health and fertility.
   
• Diverse Biofuel production: Key biofuels identified for production include compressed biogas (CBG), 2G bio-ethanol, and biomass pellets. These fuels are derived from the vast quantities of agricultural residues produced in Punjab, particularly from the 20 million tonnes of paddy straw generated annually.
   
• Employment generation: The implementation of biofuel projects is anticipated to create approximately 5,000 direct jobs and an additional 7,500 indirect jobs, contributing significantly to local economies.

Environmental and economic benefits

The shift towards biofuels is not just an energy strategy; it also addresses pressing environmental concerns:

• Reduction in pollution: Traditional burning of paddy straw contributes to air pollution and health issues. By processing this waste into biofuels, Punjab aims to mitigate these environmental hazards.
   
• Support for farmers: Farmers will benefit from an additional income stream through the cultivation of energy crops and the sale of biomass, encouraging sustainable agricultural practices.
   
• Circular economy: The policy promotes a circular economy by converting waste into energy, thereby reducing reliance on fossil fuels and lowering greenhouse gas emissions compared to traditional fuels.