India E-Fuel Market Overview, 2029

The e-fuels market in India is part of a broader global trend towards sustainable energy solutions aimed at reducing carbon emissions and reliance on fossil fuels. E-fuels, or electrofuels, are synthetic fuels produced from renewable energy sources, such as solar and wind power. They can serve as direct replacements for traditional fuels like gasoline and diesel, making them integral to the decarbonization of various sectors, particularly transportation and power generation. The focus of Ministry of New and Renewable Energy's (MNRE's) standard is on promoting hydrogen production methods that minimize environmental impact and contribute to India's renewable energy goals, thereby supporting the transition to a sustainable and low-carbon economy. The Ministry of Road Transport and Highways (MoRT&H) has issued safety standards for ethanol-blended fuels through GSR notifications. These standards include requirements for type approval of vehicles compatible with ethanol blends, ensuring that materials used in vehicles can safely handle higher ethanol concentrations. The Production costs for e-fuels are currently more expensive than fossil fuels. The production processes are more energy consuming compared to fossil fuels due to the synthesis steps involved, converting at best half of the energy in the electricity into liquid or gaseous fuels. The energy losses from manufacturing are high due to the many processes involved. However, this might be justified where electrical propulsion is not practical and renewable electricity is cheap and plentiful. Innovation in each process stage has the potential to reduce these costs in the future to enable production and scale-up. According to the research report "India E-Fuel Market Overview, 2029," published by Bonafide Research, the India E-Fuel market is expected to reach a market size of more than USD 500 Million by 2029. India is also expected to witness good growth during the forecast period. With increasing demand for automobiles and alternative crude oil-based fuels the market for synthetic fuels is expected to grow well in the Indian market. The availability of low-cost labour and cheap raw material in countries like India and China is expected to give a boost to the e-fuels market. India has taken extraordinary strides in renewable capacity development. Despite these efforts, many long-term forecasts indicate that fossil fuels would continue to play a key role in India's energy system in foreseeable future. Over the coming years, millions of Indian households are set to buy new appliances, air conditioning units and vehicles. India is in a unique position to pioneer a new model for low?carbon, inclusive growth as its energy future depends on buildings and factories yet to be built, and vehicles and appliances yet to be bought. Reduction of carbon footprint shall be achieved through putting electricity at the centre of India’s modernisation, efficiency improvement, the increased role of gas and decarbonisation of energy mix with the increasing role of renewable energy biomass, the solar, wind, nuclear and green hydrogen. India’s increasing investment in renewable energy sources, such as solar and wind, will provide the necessary power for e-fuel production. The integration of these sources into existing energy grids will support the growth of e-fuels as a viable alternative to fossil fuels. The establishment of a robust infrastructure for producing and distributing e-fuels will be critical. This includes building facilities for ethanol distillation and hydrogen production to meet growing demand.

India E-Fuel Market In the E-fuel market, of course, E-kerosene or synthetic aviation fuel is going great because the aviation industry is seeking sustainable alternative fuel for better mileage and emission reduction. The aviation sector is caught in the crosshairs of reducing its carbon footprint, for which E-kerosene produced from Power-to-Liquid (PtL) technology provides a concrete solution. It is a drop-in fuel that does not alter the design of an existing aircraft engine or any infrastructure. That makes it a more attractive option for airlines which are trying to reduce their greenhouse gas emissions. E-diesel and E-gasoline are two important segments also driven by the shift towards clean fuels in the road transport sector, and the Indian government push for electric vehicles, along with stricter emission norms. It is, however, conditioned by the concomitant focus on battery electric vehicles and a massive upfront investment in its production and distribution infrastructure. E-methanol is an emerging segment today, but largely only in maritime, which looks forward to adoption as a low-emission fuel. India has a long coastline along with ambitious targets to decarbonize shipping; this makes E-methanol a very attractive prospect. Further expansion is supported by a potential niche in stationary and mobile fuel cells. The market share of the other hydrocarbons such as E-naphtha and E-LPG is also composed of the other e-fuels, which are utilized not only in petrochemicals but also in heating homes, though its growth remains still stopped due to lower demand and lesser familiarity. Hydrogen technology leads in the India E-Fuels Market because Electrolysis is a versatile technology. Electrolysis allows the use of electricity to put hydrogen into being from water, making it an appropriate technology for quite all applications, but especially for low-emission green hydrogen that is produced on very large scales from renewable sources. This can be used for the synthesis of e-fuels, such as E-kerosene, E-diesel, and E-methanol. Indian government's focus on augmenting renewable energy capacity and reducing greenhouse gas emissions has led to growth in the same technology. Fischer-Tropsch (FT) technology is also an important area, which converts synthesis gas-a mixture of carbon monoxide and hydrogen-to liquid hydrocarbons. It grows due to its capability to produce high-quality, low-sulfur fuels that can blend with existing infrastructure. Its growth is, however, restricted to large investment in the building of production facilities and dependency on the availability of feedstock. Reverse-Water-Gas-Shift (RWGS) is one another emerging technology in the India E-Fuels Market. RWGS converts carbon dioxide and hydrogen back into carbon monoxide and water that can subsequently be used further in FT synthesis for the production of e-fuels. This segment will expand because it has the ability to make use of captured carbon dioxide and services carbon circularity and lower emissions as a whole. In that event, as of now, it is limited due to its lesser requirement for further technological advancement and optimization. The transport sector leads in India's E-fuel market as there is a growing demand for clean fuels, and the government is making sufficient efforts to promote electric vehicles (EVs) and tighten emission norms. E-fuels like E-kerosene, E-diesel, or E-gasoline can be a practical path toward decarbonizing transport; a subcategory of E-fuels forms particularly critical segments in hard-to-abate sectors such as aviation, heavy-duty transport, and shipping. Gains in e-fuel adoption in the transport sector would come from schemes such as the National Electric Mobility Mission Plan and the FAME (Faster Adoption and Manufacturing of Hybrid & Electric Vehicles) scheme. Extremely polluted urban cities like Delhi, Mumbai, and Bangalore have large urban centers at the vanguard of e-fuel adoption in transport. Industrial is a growth sector, given the importance of de-carbonization of greenhouse gases with steep decarbonization curves in industries such as steel, cement, and chemicals. E-fuels - mainly E-methanol and hydrogen -- provide low-carbon feedstocks and fuel. This is due to schemes such as the PAT (Perform, Achieve, and Trade) scheme, which seeks to enhance energy efficiency by industries. E-fuels could have greater scope in regions where the industrial belt is also more concentrated – Gujarat, Maharashtra, and Tamil Nadu. The segment of power generation is also a good potential where e-fuels, hydrogen in particular, can replace liquid fuels for power generation in a fuel cell to generate electricity. This segment primarily derives growth based on the increasing demand for reliable and clean power, mainly pertaining to remote and off-grid areas. Current growth in this area is however limited due to a higher cost of fuel cells and the infancy of infrastructure of hydrogen.

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Manmayi Raval

Research Consultant

Considered in this report • Historic year: 2018 • Base year: 2023 • Estimated year: 2024 • Forecast year: 2029 Aspects covered in this report • E-fuels market Outlook with its value and forecast along with its segments • Various drivers and challenges • On-going trends and developments • Top profiled companies • Strategic recommendation By End-use • Aviation • Marine • Industrial • Railway • Automotive • Others

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By Application • Transportation • Industrial • Power Generation • Others By Type of E-fuel • E-kerosene (Synthetic Aviation Fuel) • E-diesel • E-gasoline • E-methanol • Other Hydrocarbons By Technology • Hydrogen technology (Electrolysis) • Fischer-Tropsch • Reverse-Water-Gas-Shift (RWGS) The approach of the report: This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources. Intended audience This report can be useful to industry consultants, manufacturers, suppliers, associations, and organizations related to the E-fuels industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry. ?