According to a report by the International Energy Agency (IEA), the total biofuel demand is set to rise by 23 per cent to 200 billion litres by 2028, with renewable diesel and ethanol accounting for two-thirds of this growth. This growth will be led by three developing economies including Brazil, Indonesia, and India. Biofuels like Compressed Biogas (CBG) are emerging as promising alternatives to fossil fuels. This not only helps curb greenhouse gas emissions but also offers economic benefits. Fossil fuel consuming industries are steadily transitioning towards biofuels like briquettes and pellets in their effort to meet sustainability objectives.
A trailblazing firm in India called BioFuelCircle is driving the transition to a cleaner future. Building a strong bioenergy ecosystem that benefits the economy and the environment, BioFuelCircle is tackling the main issues in the biofuel supply chain and encouraging sustainable behaviours.
An estimated 35 million tonnes of crop waste are burned annually in India by farmers, primarily in the states of Punjab, Haryana, and Uttar Pradesh from their wheat and paddy crops. Fields are swiftly cleared using this low-cost straw disposal technique in between the cycles of harvesting and sowing. BioFuelCircle addresses this issue by providing machinery tailored for specific crop residue types, including slashers, rakers, and balers, to process stubble into transport-ready forms.
BioFuelCircle’s innovative approach increases the value of agricultural waste for farmers, integrating them into the industrial supply chain. Stubble must be chopped, gathered, and compressed into conveniently transportable bundles in order to establish a Biomass BankTM. In addition to giving village tractor owners extra earning opportunity, this approach enables rural businesses and Farmer Producer Organizations (FPOs) to grow their operations and boost profits. Biomass Bank presents multiple engagement models of partnering with it—one can become a baler operator, or one can own and operate a baler, while an enterprising individual can put together a team to operate entire collection mechanism. This is backed by financing too.
The seasonal presence of biomass, the disorganized nature of biofuel providers and the adoption of biofuels due to fluctuations are key challenges in the biomass industry. A single Biomass Bank of 10,000 MT quantum can deploy over 50 tractors, generating income for their otherwise unused capacities. It employs over 125 labourers daily and provides employment for 60 days through the season. This initiative generates several full-time jobs and creates opportunities for landowners to earn rent by using their land as warehouses. A tractor owner can earn as much as INR 6 lakh per annum if deployed for the whole year. The total economic activity generated in a cluster of villages under the Biomass Bank exceeds a crore of rupees.
BioFuelCircle ensures a steady year-round supply of biomass through Biomass Banks™ across various locations. Operated by local rural enterprises, these banks are responsible for the collection, transportation, and storage of biomass. This network is managed through a cloud-based digital platform, creating a reliable supply chain for biofuels. The digital platform enables traceability right from the farm and the farmer to the end use of the fuel. Farmers register their interest simply through a WhatsApp bot, interfacing with the platform. The tractors and post-harvest equipment are listed on platforms such as Ola and Uber, and their operators get notifications on their daily schedules for clearing farms or collecting bales. The biomass warehouse is managed digitally, with inwards and outwards deliveries recorded till the last mile, along with quality records.
“Our solution focuses on digitalization alongside a robust and participative framework of rural enterprises. Digitalization is aimed at creating inclusivity, promoting participation, and ensuring simplicity and efficiency. Coupled with a network of rural businesses set up in a franchise mode, the BioFuelCircle solution has created a supply chain that provides reliability and fair pricing.
BioFuelCircle conducts campaigns to raise awareness among farmers about the harmful effects of stubble burning on air quality and soil health. Additionally, the company highlights the economic benefits of selling agricultural waste and the opportunity for establishing sustainable businesses within villages. These efforts not only raise awareness but also demonstrate the practical aspects of collecting, transporting, and storing biomass for the Biomass Bank™ system,” says Suhas Baxi, Co-Founder and CEO of BioFuelCircle.
“This project requires proactive local involvement. As these activities begin on the ground, the economic advantages become apparent, establishing trust and turning the initiative from a business into a broad movement. A strong supply chain is essential for meeting industrial supply agreements. Businesses are motivated to collaborate with us as we help them achieve their sustainability goals,” Baxi adds. At the heart of BioFuelCircle’s model are the Biomass Banks, which serve as central collection facilities where farmers can bring their agricultural residues. These materials are weighed and recorded, and in exchange, farmers receive digital payments. This system ensures a stable supply of biomass while empowering farmers to contribute effectively.
The collected biomass is then processed into biogas by CBG plants, providing a renewable energy source that can replace fossil fuels. BioFuelCircle aims to increase international awareness of how a participative, market-based platform model can aid in sustainable energy transition, particularly in developing countries. Bioenergy, as a unique form of green energy, touches the lives of the people who help produce it.
Developing countries like India face similar challenges in transitioning to sustainable energy. In many countries, a large portion of agricultural residue is wasted. If harnessed and processed, this residue could replace coal, gasoline, diesel, and natural gas. An inclusive platform model like the one implemented by BioFuelCircle in India can not only augment farmer income but also increase access to sustainable fuel in these countries. This platform technology is geography-agnostic and can be deployed at scale in partnership with local market expertise, promising
a greener and more sustainable future for all. #
For more information: https://www.biofuelcircle.com/