Biofuels Junction’s mission is to become the category leader in the Net Zero transition by providing clean, efficient, and reliable biofuel solutions. Since inception, we have saved 3 lakh tons of CO2 emissions and over INR1 billion for Corporate India by replacing furnace oil in industrial applications, says Ashvin Patil, Founder and Director, Biofuels Junction Pvt. Ltd. in an interview with Anurima Mondal, Editor of EVolution Auto India.
Q: Please walk us through the business journey of Biofuels Junction along with its vision and mission.
Ashvin Patil: Biofuels Junction was founded in 2016 with the aim of contributing to the agriculture and rural sector by converting India’s abundant agricultural residue into solid biofuels. Converting agri-waste into briquettes and pellets provides the dual benefits of aiding farmers economically and reducing environmental pollution. These biofuels replace conventional fossil fuels like diesel and coal in industrial boilers, offering a cleaner energy alternative.
We worked on-ground by meeting various stakeholders such as farmers, rural manufacturers, transporters and the corporates to understand the circular economy of biofuels, crop harvesting, seasonal availability, market trends, supply chain logistics, and government policies.
Biofuels Junction has transformed the unorganized biofuels sector by leveraging innovative technology to streamline operations and drive sustainability. The company launched an innovative IT platform to ensure quality, consistency, and optimized supply-chain management in biofuel production. Our consistent dedication to addressing agricultural waste issues and providing sustainable energy solutions has positioned the company as a leader in the biofuel industry, contributing to environmental sustainability and offering economic benefits to farmers.
Biofuels Junction’s mission is to become the category leader in the Net Zero transition by providing clean, efficient, and reliable biofuel solutions. Since inception, we have saved 3 lakh tons of CO2 emissions and over INR1 billion for Corporate India by replacing furnace oil in industrial applications.
Q: What are the Company’s key features and offerings?
Ashvin Patil: Currently, the supply side of the biomass industry is inefficient, and the demand varies. There is no surety of long-term supplies to manufacturers, and the pricing is market-driven. To address these issues, the industry needs to bridge the supply and demand gap with IT-enabled platforms and an efficient supply chain. That is exactly what we are working on at Biofuels Junction.
Due to the bulky nature of agricultural residue, supplying raw materials to projects beyond a 40-50 km range was a challenge. A single manufacturing plant within a 50 km radius is viable, leading to smaller plants scattered across the country. The demand and supply are both dispersed and not well-organized, with no single player able to supply the required quantity of raw materials consistently.
Different locations have varying levels of demand. Since scaling a plant is not feasible, aggregating several manufacturers at one location is more viable.
We work with companies to advise them on the boiler feed best suited and sustainably available for them over a longer period.
Our unique selling point (USP) is our fleet on the street that ensures quality and consistency—the two pillars we promise to our clients. Our team visits plants, understands infrastructure, and checks SOPs. We mitigate the risks associated with prudent supplies by having multiple source locations, a capability not commonly seen across India.
Biofuels Junction’s specially developed IT platform connects over 1500 biofuel suppliers to industrial buyers, replacing fossil fuels in boilers with eco-friendly biofuels made from agricultural waste.
The biofuels supplied to our 150+ active clients are produced by compressing agricultural and wood waste into high-quality solid forms, such as briquettes and pellets. This process involves applying high pressure to agricultural residue without binding agents, resulting in denser and more uniform fuel. This leads to cleaner combustion, significantly reducing air pollution compared to conventional fuels like diesel and coal.
Q: Tell us about the crucial achievements and major milestones of Biofuels Junction. What gives you an edge over your competitors?
Ashvin Patil: Biofuels Junction is a key player in the solid biofuels and biomass value chain in India. We now produce, aggregate, and promote sales of over 20,000 tons of biomass fuel per month, working with 1500 manufacturers and over 35,000 farmers. This collaboration helps farmers utilize agricultural waste, which was otherwise burned. Our clients include marquee names such as Hindustan Unilever, Reliance, Mondelez, ITC, Pepsico, Britannia, Tata Power and CEAT. Recently, we raised a seed round from Schneider Electric and Disruptors Capital to further support our growth and innovation.
Financially, we have grown tenfold since 2019. From a revenue of INR7 crores in FY2019, we have reached an annual revenue rate of INR120 crores and are poised for exponential growth in the coming years. We operate a prudent model to ensure profitability and our strong team of 45 people is employed across the supply chain, with a presence in key locations across India, including Chennai, Lucknow, Ahmedabad, and Howrah.
Q: What have been the recent developments at Biofuels Junction specifically in terms of product development
Ashvin Patil: Apart from being a leading player in the supply chain of solid biofuels like briquettes and pellets, Biofuels Junction has recently ventured into the supply chain for liquid biodiesel. Derived from agricultural residue and plants, this biodiesel serves as a sustainable alternative to furnace oil and diesel.
In addition to expanding our product lines, we have also made significant investments in our IT platform, which now utilizes advanced AI and ML technologies to optimize the supply chain. This ensures greater efficiency and reliability in our operations.
We are also broadening our manufacturing capabilities by expanding our geographical presence from North, West, and Central India to other regions, particularly the South. This expansion will allow us to reach new markets and customers, driving the adoption of biofuels.
Moreover, Biofuels Junction has entered the steam contract business, where we not only supply biofuels but also manage the entire operation and maintenance of steam boilers for various industries. This holistic approach allows us to provide a complete energy solution, ensuring high efficiency and reliability for our clients.
Q: What are your views on using biofuel as a sustainable option for transport? According to you, what has been the contribution of biofuels in reducing carbon emissions?
Ashvin Patil: Biofuels, particularly ethanol and biodiesel, have emerged as sustainable alternatives for transport in India, offering significant environmental and economic benefits. Ethanol blending in petrol has been a crucial part of India’s strategy to reduce its reliance on fossil fuels and lower greenhouse gas emissions. Recently, India successfully achieved 10 percent ethanol blending in May and is on track to reach the 20 percent target by 2025.
This initiative is expected to reduce carbon emissions significantly, as ethanol has a lower carbon footprint compared to fossil fuels. By blending ethanol with petrol, India aims to achieve a 20 percent blending rate by 2025-2026. Biodiesel, another major biofuel, emits 70 percent fewer carbon emissions than conventional fossil fuels. This reduction in emissions is a significant contribution to India’s efforts to decarbonize its transportation sector. These initiatives not only help in reducing carbon emissions but also support the agricultural sector by providing a market for surplus crops used in ethanol production. Additionally, the adoption of CNG in public transport and private vehicles has contributed to improved air quality in cities and reduced the overall carbon footprint of the transport sector.
Q: What suggestions would you give to increase the usage of biofuel as an alternative to traditional fuels in India?
Ashvin Patil: To increase the usage of biofuels as an alternative to traditional fuels in India, government policy incentives and schemes such as Sustainable Agrarian Mission on the use of Agro Residue in Thermal Power Plants. (SAMARTH) and Sustainable Alternative Towards Affordable Transportation (SATAT) have been instrumental in promoting biofuels and addressing feedstock management and supply chain challenges. Including biofuels under priority sector lending would ease financing issues and significantly benefit rural economies. Additionally, policies enforcing the substitution of coal with biomass and a complete ban on the usage of raw wood for burning are crucial. Enforcing pollution-related policies will also help drive demand for biofuels.
Developing infrastructure for the collection, storage, and transportation of biofuel feedstock is essential. Establishing dedicated biofuel refineries and distribution networks will ensure a consistent supply chain. Promoting decentralized production, especially in rural areas, can reduce transportation costs and make biofuel production more viable.
Q: Could you shed some light on the current status and key challenges for biofuel in India?
Ashvin Patil: India’s biofuel sector is poised for significant growth as the country aims to achieve its net-zero emissions target by 2070. Agriculture in India generates about 350) million tonnes of agricultural residue annually, of which almost 200 million tonnes, is burnt or disposed of without productive use. With the use of modern technology and partnering with the right players, farmers can easily convert biomass into eco-friendly biofuels.
Solid biofuels currently contribute 12.83 percent to the country’s renewable energy. Government initiatives like the GOBAR DHAN (Galvanizing Organic Bio-Agro Resources Dhan) scheme and the RUCO (Repurpose Used Cooking Oil) initiative support the conversion of waste into biofuels. The phased blending of CBG in CNG and PNG, coupled with financial aid for biomass aggregation machinery, further strengthens the sector. Paddy straw, a major pollutant when burned, is now effectively used for CBG production.
However, the biofuel sector faces several challenges that need to be addressed to reach its full potential. To make biofuel production sustainable and affordable, we need to improve supply chains and processing technologies. Developing strong infrastructure for collecting, storing, and transporting feedstock is also essential. Government support through policies, financial incentives, guaranteed pricing, and technical standards is crucial for growth. Additionally, more research and development are needed to make biofuel production more economically viable.
Future opportunities include improving rural logistics to reduce costs and ensure a steady supply of raw materials, promoting energy crops on non-food agricultural land, and expanding the use of various agricultural residues for CBG production. By capitalizing on these opportunities, India can enhance the sustainability and cost-effectiveness of the biofuel sector, contributing to its energy security, environmental goals, and progress towards net-zero emissions.