The world is undergoing an energy transition to combat climate change and achieve a sustainable future. India has set an ambitious goal of becoming net-zero by 2070, with bioenergy playing a crucial role in achieving this target. However, the bioenergy sector faces unique challenges, particularly in logistics and supply chain management. Unlike other renewable sectors, bioenergy logistics is a complex and perpetual process that requires a steady supply of biomass.
The bioenergy logistics spectrum spans three stages: upstream, midstream, and downstream. Upstream involves sourcing biomass from agricultural, forest, municipal, and industrial waste, while midstream focuses on storage and warehousing. Downstream covers transportation, warehousing, and last-mile delivery. The logistics sector faces several challenges, including small and fragmented farms, limited storage and warehousing, and lack of standardization.
The major challenges in bioenergy logistics include:
1. Aggregation: Small and fragmented farms make aggregation difficult.
2. Storage: Limited storage and warehousing lead to losses and inefficiencies.
3. Finance: High borrowing costs and lack of access to loans hinder small farmers.
4. Land zoning: Absence of clear land zoning leads to aggregation issues and failed projects.
5. Stakeholder engagement: Farmers are often treated as vendors rather than stakeholders.
6. Awareness: Limited awareness and misinformation hinder adoption.
7. Research and development: Underdeveloped R&D cycles slow technology adoption.
8. Policy-making: Exclusion of domestic experts and lack of standardization create inefficiencies.
Despite these challenges, the logistics sector has ample opportunities to support the bioenergy space. These include:
1. Harvesting machinery: Opportunities for equipment manufacturers.
2. Transportation: Demand for carts, vehicles, and specialized carriers.
3. Warehousing: Opportunities for rural depots, densified biomass storage, and product storage.
4. Integration: Logistics companies can integrate supply chains with core businesses.
5. Technology adoption: Scope for adopting GIS mapping, predictive analytics, and other technologies.
6. Training and skilling: Opportunities for training and upskilling in logistics and biomass handling.
7. Leasing land: Opportunities for leasing land for energy plantations and related infrastructure.
To refine biomass supply chain management, recommendations include:
1. Placing all aspects of energy security under the Union List.
2. Creating a coordination cell to map biomass projects and align with the net-zero 2070 roadmap.
3. Framing policies linked to sustainable development goals and Paris Accord commitments.
4. Financial measures: Accord priority sector status to bioenergy, cut borrowing costs, and allocate funds for projects.
5. Establishing biomass depots and state-of-the-art warehousing.
6. Boosting awareness and scaling up skilling and workforce development.
7. Encouraging collaborations and promoting research and development.
Innovative solutions, such as consumer-based financing, optimizing by-products, and defining biomass logistics standards, can also support the bioenergy sector. The Global Biofuels Alliance can serve as a platform for best practices, finance, and market development. With focused policy advocacy, curated finance, technology adoption, and best practices sharing, India can achieve its energy transition targets and become a hub for global biofuels growth.