Adoption of Alternate Fuels in Energy Intensive Industries

In the recent years, there has been a significant uptick in the use of clean energy sources for power generation. Alternative fuel sources like solar power, wind, bioenergy, etc. are gaining traction given lower cost, hassle free access to energy and also benefit the environment. However, one cannot disregard the fact that fossil fuels such as coal, petroleum and natural gas still continue to be the predominant source of energy across the world. While they are used rampantly, their finite nature, high prices and most significantly, their harmful effect on the environment are pushing more energy intensive industries to look at adopting alternate sources in a phased manner. While solar and wind energy are a great way to reduce dependence on electricity bio-fuel is a convenient alternative for industries that use high amount of diesel, coal etc. for purposes of cooking or generating thermal power. Bio-fuel is emerging as a new way for industries to incorporate a clean energy alternative in their energy mix. Moreover, the recent announcement by the Finance Minister to include 5% of biomass pellets in thermal power plants is a move in the right direction and an indication for other industries as well. Here are some benefits of using alternate fuels that can help businesses not only become sustainable but also be a more responsible corporate.

Alternative Fuel Sources Are More Cost-Efficient
Alternative fuel sources can save a business up to 40% of costs as compared to traditional fuel sources. Companies can adopt solar energy, wind energy, bioenergy and other forms of renewable energy to power their operations. Bio-energy is one of the upcoming form of renewable energy used as alternate fuel which can reduce cost but also addresses the issue of agricultural waste management. A number of businesses across sectors like hospitality, manufacturing have become cognizant of this fact and have started adopting bio-fuel. Interestingly, this has led to not only environmental benefits for businesses but also led to commercial savings, making the adoption of bioenergy a smart and sustainable choice.

Reduced Emissions
Alternative sources of energy are not as harmful as they are cleaner sources of energy. Low emissions is the key for moving forward as they help prevent global warming and safeguard the environment. Conventional sources of power cause pollution, hence lowering these emissions will reduce your carbon footprint. With sustainability becoming a key criteria for investors, companies are looking at more clean energy option across their operations.

Adding value to farmers
Bio-energy is produced from agricultural waste that is generally burnt causing high pollution in adjoining areas. Production of bio-energy itself addresses the issue of stubble burning and at the same time adds income source for farmers who would otherwise have to deal with the huge agriculture waste. Bio-fuel companies can help farmers with end-to-end agricultural waste management, providing incentives at the same time.

Abundant availability
Given the source of renewable energies like solar, wind or bio-fuels are not limited and have abundant availability, there is no chance of running out of alternate sources of energy unlike fossil fuels. It is available abundantly in nature and can be used whenever required without depleting natural resources. Harnessing the power of energy already available aplenty saves costs of acquiring fossil fuels like coal, diesel etc., making it sustainable at the same time.

The challenges and possible solutions to increase adoption
Businesses across the world are facing this unnerving task of reducing dependence on fossil fuels, because they are a threat to the environment and are becoming scarce and costly. While alternate sources of energy are playing a critical role in meeting the world’s energy requirement, its role in the future will be indispensable. Taking cognizance of this fact, strict policies and standards are required from the government to ensure the sustainable development of alternate energy across energy intensive businesses. A reliable energy scenario is the one that uses both fossil fuels and renewable energy like bioenergy as it possesses large opportunities like better energy security, reduced emission of greenhouse gases, and improved access to energy, rural development and poverty eradication. To ensure that the advantages offset the threats, leading companies should immediately develop and start adopting alternate sources of energy for economic, social and environmental considerations. One solution to this issue is developing a multi-stakeholder process that engages all parties involved in its adoption. This is Governments, NGOs, farmers and industry leaders that can benefit from such an agreement. Given the regional variances of climates, agriculture, and energy needs, regional standards should be developed and refined. Ideally, each level (international, regional, national and local) should introduce mandatory sustainability standards for use of renewable energy by means of regulations that are consistent with the other levels. The agreement can provide a framework and set core standards for environmental, social and economic criteria for different sectors adopting renewable energy. At a regional or national level it can elaborate on what goes beyond the international agreement’s minimum standards, and can also establish implementation instruments (such as feed-in tariffs, admixture quotas, tax exemption and import regulations). National implementation must be consistent with regional and international regulations and sustainable standards, but allow for flexibility of national circumstances. Renewable energy especially bioenergy has great potential to provide a significant portion of global energy demand without competing with food production, forest-protection efforts and biodiversity, and lead to development of rural areas by providing development opportunities and access to sustainable energy for those who lack this currently. Given the range of issues it touches, problems in implementation will continue unless standards are tackled in a multi-stakeholder process in the near future to ensure its sustainable development across sectors.

With tremendous pressure on conventional fuels it has become imperative to shift to alternate sources of energy or adopt blending of fuels for long-term benefits. This will not only help the environment bit also help in increasing their brand credibility amongst the key stakeholders in the long run.

- Swapnil Kardile, CEO, Rajaram Bioenergy