PetroFed: National Seminar on Biofuels - 2008 Theme Address October 13, 2008.

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Presentation transcript:

PetroFed: National Seminar on Biofuels Theme Address October 13, 2008

PricewaterhouseCoopers October 2008 Slide 2 National Seminar on Biofuels Secure Energy Sources Reduce dependence on imported energy sources for transport and energy demand; and Develop long-term replacements for fossil oil without much activity for transition. 2 The consequence of developing Biofuels are extremely attractive; most importantly they are unparalleled. Reduce Environment Footprint Decouple future economic prosperity from environmental pollution; and Make economic-ecological relationship a positive instead of negative 1

PricewaterhouseCoopers October 2008 Slide 3 National Seminar on Biofuels Complex, cross-cutting and dynamic character of issues, necessitate the approach to be strategic; and impact monitored. Off-take and price Guarantee Blend mandates Consumers Oil companies Tax concessions or breaks Fuel quality directives Regulation Research & Development funding Policy Initiatives Subsidy removal on conventional fuels Auto Technology Development

PricewaterhouseCoopers October 2008 Slide 4 National Seminar on Biofuels Policies need to be designed after due assessment of counter- arguments the biofuel industry is facing despite many positives. Energy Security ………. Emission Control ……… Agriculture promotion…. ………………………….. There is an entrenched petroleum import lobby Can be grown anywhere, with least input – a wishful thinking Biodiesel creates NOx levels ‘Fuel-switch’ & baselines make CDM benefit impractical Farmers work on handkerchief-sized plots Trade difficult; fuels need to be ‘commodity’ Ethanol has a negative CO2 impact Jatropha is not a native species of India Increased corn ethanol production is increasing prices for corn grain Corn ethanol has a negative fossil energy balance Biofuels exacerbate world hunger

PricewaterhouseCoopers October 2008 Slide 5 National Seminar on Biofuels Challenges of ethanol supplies, seeking farmers’ participation in cultivation, setting up logistics chain, and many such issues remain unresolved. The seminar could deliberate on them. Do we need an Alternative Fuels Act? How will we ensure issuance of notifications with long-term objectives and dynamic flexibility? What standards would apply to fuel blends in long term? Would zoning be required in cities with high NOx levels? Would the fiscal concession systems designed be in tandem with diesel and petrol and with the VAT and GST regimes? Should the fuels be allowed to be sold directly to consumers? We have missed deadlines in past; how to ensure we do not again do so?

PricewaterhouseCoopers October 2008 Slide 6 National Seminar on Biofuels PetroFed is committed to creating a platform to stakeholders to discuss and pave way towards the Biofuels development. Share progress with new investors Focused R&D and dissemination of knowledge Evaluate cost-benefits to various stakeholders Share views on Government policy actions Recommend actions to policy makers Objectives of the Biofuel Seminar

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