India, Brazil Energy Ministers explore cooperation in biofuels
Published: Sep 23, 2024
By TIOLCorplaws News Service
NEW DELHI, SEP 23, 2024: MINISTER of Petroleum & Natural Gas of the Republic of India, Hardeep S Puri, paid an official visit to the Federative Republic of Brazil from September 19th - 21st on the invitation of the Minister of Mines & Energy of the Federative Republic of Brazil, Alexandre Silveira. Mr Puri was accompanied by Indian Oil & Gas Companies representing both the upstream and downstream sector.
During the visit, the sides reviewed the existing collaboration in the energy sector including Indian upstream investment, mutually beneficial relationship in bilateral trade and cooperation in sustainable fuels, particularly biofuels.
In the oil & gas sector, the sides recognised the trust reposed by Indian companies in the Oil & gas sector which has resulted in Brazil being one of the largest destinations for investments by Indian Oil & Gas companies in the world. The sides also reaffirmed their commitment to identify new possible mechanism for increasing the presence of Indian companies in the country, including through new investment opportunities in producing assets. The sides, while recognising the complementarities in the trade sector, committed to identifying ways of enhancing the trade between the two countries, including through innovative mechanisms.
As founding members of the Global Biofuels Alliance, both sides reiterated the crucial role the Alliance will play in positioning biofuels as a key component of the global energy transition, contributing not only to environmental sustainability but also to socioeconomic growth.
The Indian side congratulated the Brazilian side on the hosting of the G20 and welcomed the emphasis being placed on sustainable fuels and social dimensions of energy transition. The Indian side expressed confidence that Brazil's leadership would further the G20's agenda of inclusive and sustainable development, building on the momentum generated by India's presidency in 2023.
The sides looked forward to co-hosting an India-Brazil Clean Cooking Ministerial Meeting on the sidelines of India Energy Week 2025 in February 2025, which would provide an opportunity to explore collaborative pathways for enhancing clean cooking access globally.
Both sides discussed collaboration in the domain of deep and ultradeep explorations in the Indian offshore Acreages.
The two sides also initiated a discussion on cooperation in the area of critical minerals and their value chains.
Joint Statement on Biofuels and Sustainable Aviation Fuels (SAF)
The sides noted that India and Brazil, as two leading biofuel producers, are well-positioned to collaborate on production and use of Sustainable Aviation Fuels (SAF) , by leveraging their existing ethanol and biodiesel production infrastructure, growing aviation market and vast feedstock potential, including their agricultural resources.
In the context of SAF, the sides noted that currently SAF remains the major mature and viable pathway to decarbonise the aviation sector. At the same time, SAF only accounts for 0.3% of the current fuel use for aviation.
The sides reaffirmed that the goal of net zero in the aviation sector would require joint and collaborative action between the two countries to resolve some of the major hurdles to SAF production, namely, feedstock-related challenges, high cost of SAF compared to other technologies, infrastructure for large-scale production and efficient waste management systems, low maturity of production pathways, etc.
The sides highlighted the importance of the establishment of consistent international standards, such as the sustainability criteria defined within the scope of Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA/ICAO) and reinforced the principle of technological neutrality with regards to the different technological pathways and raw materials used in the sustainable production of aviation fuels.
The sides recognised the role an India-Brazil partnership in SAF can play in the deployment and development of the Sustainable Aviation Fuel Sector through leveraging and catalysing of regional value chains to ramp up SAF production, trading, distribution and certification, which inter-alia will support the enhancement of availability, affordability and reliability of SAF.
The sides noted that the modes for such cooperation could include the following:
1. Leverage Ethanol Production from all sources;
2. Promote technology exchange, joint research, and development initiatives, in order to optimize SAF production processes;
3. hare regulatory and policy experience, with a view to create frameworks that encourage investment in SAF production;
4. Cooperate in RD&I with a view to enhance the Technology Readiness Level (TRL) of production pathways;
5. Collaborate in multilateral forums, such as ICAO, in order to promote the development of SAF.
The sides acknowledged that collaboration between the two countries represents a strategic partnership in line with the sustainable development and carbon reduction goals of both countries. By combining resources, expertise, and technology, India and Brazil can lead the global transition towards lower emission aviation. This collaboration will not only address pressing environmental challenges but also open new avenues for economic and technological advancement in the biofuels sector.
The sides therefore reaffirmed their desire to strengthen cooperation between the two countries to usher in various advantages, which include economic growth, by creating jobs in the rural sector and fostering innovation in renewable energy technologies and energy security, by reducing reliance on imports. Importantly, bilateral cooperation in SAF production will contribute to global efforts to reduce the carbon footprint of aviation.
The ministers underscored that this comprehensive partnership represents a significant milestone in India-Brazil relations aligning with their shared sustainable development goals. By combining their resources, expertise, and technology, India and Brazil will not only lead the global transition towards lower emission aviation but also provide critical support to other Global Biofuels Alliance members in their decarbonization efforts, ultimately paving the way for a future with cleaner skies.
