From boilers to burners: How Indian industries are switching to biofuels

By Kishan Karunakaran, CEO and Founder, Buyofuel

India’s industrial sector is undergoing a quiet yet powerful transition—one that replaces fossil fuels with renewable alternatives to meet both sustainability goals and energy demands. From the boilers of textile units to the burners in food processing plants, industries across India are increasingly adopting biofuels as a cleaner, cost-effective, and locally available energy source.

This shift is not just about environmental responsibility; it’s a strategic response to policy nudges, rising fossil fuel costs, and growing awareness of climate risks. Here’s how and why Indian industries are switching from conventional fuels to biofuels, and what this transformation means for the country’s energy and environmental future.

The need for a cleaner industrial fuel

India’s industries rely heavily on thermal energy for processes like drying, heating, steam generation, and power. Traditionally, this energy has been sourced from coal, furnace oil, diesel, and natural gas—fuels that not only contribute to significant greenhouse gas (GHG) emissions but also strain foreign exchange reserves due to imports.

According to the Ministry of Petroleum and Natural Gas, India imported over 85 per cent of its crude oil in 2023. As global oil prices fluctuate and climate concerns mount, industries are rethinking their energy strategy. Enter biofuels—a renewable, low-carbon alternative derived from biomass sources such as agricultural waste, used cooking oil, municipal solid waste, and non-edible oils.

Industry-wise adoption of biofuels

• Textile and garment units: Textile clusters in Ludhiana, Tiruppur, and Surat are replacing coal-fired boilers with those powered by biomass briquettes or pellets. Steam generation using briquettes not only reduces emissions but also qualifies industries for green certification, which helps attract export buyers with sustainability mandates.

• Food and beverage industry: Bakeries, breweries, and snack manufacturers are shifting to biodiesel or bio-CNG burners for baking, frying, and heating. Companies such as ITC and Amul have experimented with biofuels to power their food processing units, citing better combustion efficiency and reduced smoke emissions
• Hospitality and commercial kitchens: Hotels and catering companies are increasingly switching to biodiesel in kitchen burners. Used cooking oil (UCO) from their own operations is often converted into biodiesel, closing the loop on waste and fuel.
• Cement and steel plants : While these heavy industries have traditionally relied on coal, some are co-firing biomass pellets along with coal to reduce overall emissions. Government mandates are pushing large thermal power and cement plants to incorporate at least 5–10 per cent biomass into their fuel mix.

Government support and policy push

The Indian government has introduced several initiatives to boost biofuel adoption:

• National bio-energy mission: Aim to promote biomass-based power and industrial heat applications.
• SATAT scheme (Sustainable Alternative Towards Affordable Transportation): Encourages the setting up of bio-CNG plants to supply fuel to the transportation and industrial sectors.
• Ethanol blending programme: Target 20 per cent ethanol blending with petrol by 2025, opening up new markets for sugar mills and grain processors.
• FSSAI’s RUCO initiative: Mandates large food businesses to dispose of used cooking oil responsibly, encouraging its conversion to biodiesel.

These policies, coupled with state-level incentives such as VAT exemptions, capital subsidies, and faster clearances, have helped create a more favourable ecosystem for biofuel deployment.

Challenges on the road

Despite the momentum, industries face several hurdles:

• Supply chain gaps: Ensuring a steady supply of quality biofuels remains a challenge, especially in remote areas.
• Technology compatibility: Retrofitting burners and boilers to suit biofuels can incur costs, deterring small and medium enterprises.
• Price sensitivity: While biofuels are often cheaper in the long run, initial costs and price fluctuations can affect adoption rates.
• Lack of awareness: Many industries are unaware of the operational and environmental benefits biofuels offer, creating a need for awareness campaigns and technical support.

The way forward

With India committing to achieve net zero emissions by 2070, decarbonising its industrial sector is non-negotiable. Biofuels offer a pragmatic, scalable solution to cut emissions while promoting circular economy principles. The upcoming years will likely see:

• Public-private partnerships to build decentralised biofuel supply chains.
• Digital marketplaces that connect biofuel producers with industrial buyers.
• Carbon credit monetisation opportunities for industries reducing emissions through biofuel use.
• Standardisation and certification to ensure fuel quality and performance consistency.

The biofuel revolution in Indian industries is not just a trend—it’s a necessary evolution. From powering boilers to fuelling burners, biofuels are helping businesses lower costs, meet ESG goals, and reduce dependence on imported fossil fuels. The shift may be gradual, but with supportive policy, technology upgrades, and informed decision-making, India’s industrial sector is well on its way to a cleaner, greener future.

This article has been republished from The Manufacturing Today.