With India heavily reliant on importing 83 percent of its fuel consumption, there needs to be more energy security. The crux of the issue lies in the need for an organized supply chain for sourcing biofuels and waste materials. Buyofuel aims to bridge the gap by establishing an efficient marketplace and facilitating the sourcing of biofuels and waste materials, says Kishan Karunakaran, CEO of Buyofuel in an interview with Anurima Mondal, Editor of EVolution Auto India.
Q: Buyofuel claims to be India’s first B2B marketplace for buying & selling biofuel and its raw materials. Please walk us through its business journey along with its vision and mission.
Kishan Karunakaran: Buyofuel tackles a pressing environmental challenge within India’s energy landscape. The nation’s annual consumption of over 1300 Million MT of fossil fuels results in more than 3200 Million MT of CO2 equivalent emissions. Simultaneously, the burning of over 40 Million MT of organic waste exacerbates pollution and waste issues. With India heavily reliant on importing 83 percent of its fuel consumption, there needs to be more energy security. The crux of the issue lies in the need for an organized supply chain for sourcing biofuels and waste materials. This unstructured landscape poses hurdles for biofuel manufacturers and hinders fuel consumers’ seamless transition to eco-friendly alternatives. Buyofuel aims to bridge this gap by establishing an efficient marketplace and facilitating the sourcing of biofuels and waste materials. Through these efforts, we contribute to reducing fossil fuel consumption, and CO2 emissions, and curbing organic waste burning.
Q: What are the Company’s key features and offerings?
Kishan Karunakaran: Buyofuel establishes a structured online marketplace, connecting waste generators, biofuel manufacturers, and fuel consumers seamlessly. The platform ensures a transparent process from product enquiry to doorstep delivery, reducing opacity in transactions. Biofuel manufacturers access a broad range of organic wastes, fostering stability in raw material supply. Fuel consumers can effortlessly access quality biofuels at attractive prices. Biofuel manufacturers experience simplified and transparent B2B transactions. A stable supply chain benefits both manufacturers and consumers, promoting the growth of the biofuel sector. Our working prototype features cutting-edge technologies aimed at optimizing biofuel trading. Advancing from the prototype phase, we integrate real-time data analytics and our proprietary scoring system, BuyoScore, to continually enhance user experiences. User feedback fuels our evolution, positioning Buyofuel as a leader in the dynamic biofuels and organic wastes sector.
Q: Earlier this year, Buyofuel secured its position on the prestigious SET100 list. Please tell us more about your achievements. What gives you an edge over your competitors?
Kishan Karunakaran: Being recognized as a Forbes200 company last year has significantly boosted Buyofuel’s visibility and credibility on a global scale. This accolade provided us with valuable insights into international market trends and policies, directly informing our strategic planning and expansion efforts. Buyofuel stands as a unique platform, unlike its competitors. Buyofuel fully digitizes end-to-end B2B transactions for biofuels and organic wastes, ensuring transparency, security, and quality assurance. As a free-to-join platform with extensive verification processes, Buyofuel caters to all biofuel types, a distinctive feature in the Indian market. With the largest buyer and seller base, Buyofuel propels the biofuels sector, promoting sustainability, rural income, and reduced fossil fuel imports.
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?
Kishan Karunakaran: Biofuels, including biodiesel and bioethanol, are considered a sustainable option for transportation due to their potential to reduce greenhouse gas emissions and reliance on fossil fuels. Biofuels can help diversify energy sources and reduce dependence on oil imports, enhancing national energy security. Biofuels are a promising component of the transition to a more sustainable and low-carbon transportation system. While they offer significant benefits in terms of reducing greenhouse gas emissions and enhancing energy security, it is essential to address the associated challenges such as land use, food security, and lifecycle emissions.
Q: Could you shed some light on the current status and key challenges for biofuel in India? How does your platform help to mitigate the challenges?
Kishan Karunakaran: For more than a decade, biofuel has been used in India. Although there are many obstacles to its widespread adoption, the growth of this industry is undeniable.
Despite the availability of surplus biofuel raw materials, lack of accessibility and regulation has halted growth in this sector. Moreover, low public awareness and technological know-how have also hindered progress. In addition to these barriers, there are also concerns about quality assurance, transparency and inadequate infrastructure—all of which have made it difficult for the industry to expand.
We aim to create an ecosystem where every stakeholder can build connections within the biofuel community. By raising awareness of biofuels among farmers and people, we hope that this nascent level will grow into something more substantial over time. Also, we provide transparency and quality assurance via technology so that biofuel stakeholders can do business with ease.
Q: What suggestions would you give to increase the usage of biofuel as an alternative to traditional fuels in India?
Kishan Karunakaran: Our sector has the power to transform India’s energy landscape by reducing dependency on fossil fuels and lowering greenhouse gas emissions. We need policies that incentivize the production and consumption of biofuels, support technological innovation, and enhance the infrastructure for biofuel distribution. The current regulatory landscape presents a favorable environment for biofuels. Over the last five to six years, the regulatory policies have mandated the use of biofuels to substitute fossil fuels across all industries which has helped to increase the demand and adoption of biofuels as major consumers. To further accelerate the mass acceptance of biofuels among petrol consumers, we recommend a greater level of transparency in the retailing of biodiesel, bioethanol, and bio-CNG. This will foster increased confidence and facilitate the widespread adoption of biofuels on a larger scale.
Q: Please elaborate on the future prospects of biofuels in India. What are your expansion plans?
Kishan Karunakaran: Biofuel in India is gaining significant momentum, especially after the Indian government’s budget announcement, which plays a pivotal role in further streamlining the biofuel industry. With policy pushes such as E20 for ethanol, B5 for biodiesel, SAF, financial incentives, and schemes for the biomass and biogas sector, green hydrogen is a hopeful prospect, making biofuel a critical component in India’s energy mix as the country strives for energy security. These prospects are not diminishing anytime soon, and the scenario has shifted significantly. Today, people are much more aware of biofuels, moving past the nascent stage they once were in. Furthermore, R&D, technology transfer with other countries, and international collaboration are progressing rapidly. Global organizations are setting frameworks for large emission corporations to adhere to emission targets, further emphasizing the commitment of the biofuel industry to maturing and helping in the fight against climate change.
Going forward, we plan to diversify our income sources and grow our presence in India by expanding our team and operations into Uttar Pradesh, Madhya Pradesh, and Gujarat. After this expansion, we expect to maintain positive EBITDA within three months. Our goals include forming partnerships with government bodies (B2G), exploring opportunities in international markets and exports, investing in biofuel projects, generating revenue from carbon credits, implementing strategic marketing, offering Buyofuel SAAS solutions, and leveraging emerging technologies like AI and blockchain for improved efficiency and innovation.