In Short : Bihar unveiled its revised Biofuels Production Promotion (Amended) Policy, 2025, ahead of World Biofuel Day, with the goal of increasing the production of ethanol and compressed biogas (CBG) from sources such animal dung, maize, sugarcane, jatropha, and agricultural waste. In districts like Purnia and Kaimur, jatropha farming has spread, and the state today runs 12 ethanol facilities that produce 5.65 billion liters, 60% of which are supplied to Southern India. By 2026, the program also opens the door for nine additional ethanol projects. The action is praised by environmentalists for encouraging investment, creating jobs, and reducing pollution while supporting India’s net-zero goals.
Forecasts and Market Trends
By incorporating biodiesel derived from jatropha and highlighting CBG under the “Waste to Wealth” project, this policy revision broadens Bihar’s green energy portfolio.
Ethanol output is anticipated to increase dramatically by 2026 with nine new ethanol facilities planned for areas including Bhagalpur, Begusarai, and Muzaffarpur.
The goal of the strategy is to encourage entrepreneurship in renewable energy, infrastructure development, and investments in Bihar.
Effects on the Circular Economy and Clean Energy
Reducing Carbon Emissions: Ethanol and jatropha from organic waste can significantly reduce reliance on fossil fuels.
Rural Employment: New sources of income and sustainable land use alternatives assist farmers in 13 districts that have been identified.
Waste Valorization: Producing CBG from animal dung and agricultural waste promotes energy diversity and environmental cleanliness.
The Significance of Policy Momentum: India’s larger national goal for sustainable energy and the elimination of fossil fuels is in line with Bihar’s reinvigorated push for biofuel.
Economic Inclusion: Localized growth and resilience are strengthened in rural regions by promoting green investment and entrepreneurship.
Climate Leadership: This tactical move establishes a standard for other states and strengthens Bihar’s commitment to India’s net-zero 2070 target.
The Significance of It
Policy Momentum: India’s larger national goal for sustainable energy and the elimination of fossil fuels is in line with Bihar’s reinvigorated push for biofuel.
Economic Inclusion: Localized growth and resilience are strengthened in rural regions by promoting green investment and entrepreneurship.
Climate Leadership: This tactical move establishes a standard for other states and strengthens Bihar’s commitment to India’s net-zero 2070 target.
The bottom line
By unlocking rural economic potential, reusing trash, and strengthening its green transition, Bihar’s improved biofuel strategy enables the state to become a leader in renewable energy in India while also making a significant contribution to national climate goals.
