India Turns to Biofuels as Crude Supply Risks Skyrocket

India is exploring ways to boost its use of biofuels as a means to strengthen energy security, according to Tarun Kapoor, an adviser in the Prime Minister's Office. The move comes amid rising concerns over crude supply risks following disruptions caused by the Iran war. Brent crude futures have breached $100 a barrel for the first time since late July.

Kapoor emphasized the need for India to utilize all available domestic resources to ensure energy security. As the world's third-biggest oil importer and consumer, India is already blending ethanol with gasoline. The country mainly uses corn-, rice- and sugarcane-based feedstocks to produce ethanol, but it also plans to conduct tests on blending biofuels with diesel.

New Delhi is also shifting towards wider adoption of flex-fuel vehicles as part of its efforts to reduce reliance on expensive energy imports and promote the use of ethanol blends in gasoline. However, some motorists and independent analysts have expressed concerns that higher ethanol content could impact engine performance and fuel efficiency, as well as increase the risk of biofuel contamination.