Abstract

Biofuels are going to play an extremely important role in meeting India’s energy needs. The country's energy demand is expected to grow at an annual rate of 4.8% over the next couple of decades. Most of the energy requirements are currently satisfied by fossil fuels – coal, petroleum-based products and natural gas. Domestic production of crude oil can only fulfill 25 to 30% of national consumption. In fact, oil imports during August, 2010 were valued at US $ 7795 million which was 12.4% higher than oil imports valued at US $ 6936 million in the corresponding period last year. India was the sixth largest net importer of oil in the world, importing about 70%, of its oil needs and fourth largest consumer of oil in the world.

Key words: Biofuel, ethanol, blends, biodiesel.