🌱 1. What Are Synthetic Fuels?
Synthetic fuels, also known as synfuels, are liquid fuels made from non-petroleum feedstocks like biomass, coal, methane, syngas (a mixture of CO and H₂), or even collected CO₂ by procedures like hydrogenation, methanol synthesis, and Fischer–Tropsch. They can simulate conventional gasoline, diesel, and jet fuel and are essential for decarbonizing industries that are difficult to electrify, such as shipping and aviation.
📈 2. Historical &Current Status in India
· Domestic Feedstock & Infrastructure
1. India's syngas infrastructure, which is essential for synfuels, reached about 8.52 Nm³/h in 2024 and is expected to double to about 17.54 Nm³/h by 2033 (CAGR of around 8.35%).
2. Blending ethanol has become more popular: Although blending targets (5% biodiesel)continue to lag because of feedstock shortages, Indian biodiesel production is expected to reach 718 million liters in 2025, a 60% increase from 2024.
3. A second-generation (2G) bioethanol drive is part of India's energy policy; the government has allotted ₹5,000 crores, and oil PSUs (IOCL, HPCL, and BPCL) have plans to build seven such refineries.
· Policy & Subsidies
1. The Ethanol Blended Petrol (EBP) initiative is in progress, with an eye on E20 by 2025 and E27 in consideration.
2. Gujarat has developed into a national center, thanks to significant investments being made in compressed biogas (CBG) and ethanol (Amul's whey-ethanol).
3. Strong support exists for green hydrogen, a crucial precursor to synfuel: For green hydrogen targets of 5 Mt/year by 2030, ₹2.3 billion has been approved.
🚀 3. Regional &Global Market Outlook
· The demand for synthetic fuel is dominated by Asia-Pacific (~40%), and the region's synthetic fuel market is expected to grow at a compound annual growth rate (CAGR) of ~22.5% from US$2.51B in 2024 toUS$19.16B in 2034.
· The global synfuel market is expected to expand at a 22.4% CAGR from US $6.27 billion in 2024 to US $47.3 billion in 2034.
· Several sources agree that the CAGR through the2030s will be between 20 and 22%.
Synthetic Fuel Market Size 2023 to 2034 (USD Billion)
Synthetic Fuel Market Share by region
🔭 4. What Lies Ahead for India?
· Scaling Feedstock & Infrastructure
1. Scaling the feedstock is essential. By 2025, ethanol will require a capacity of around 17 billion liters annually; current production and blending fall short of this goal.
2. A long-term expansion push is indicated by investments of ₹50 crores each in green hydrogen valleys and 2G bio ethanol plants.
· Policy & Corporate Momentum
1. EBP moves to E27 reinforce government support
2. Oil majors (BPCL, IOCL, HPCL) plan synfuel &hydrogen-integrated refineries (BPCL targeting net zero by 2040 via ₹1 trillion renewable investments)
3. Catalyst tech providers like Johnson Matthey are helping refineries blend renewable feedstocks to produce cleaner fuels
· Strategic Outcomes
1. Reduced oil import dependence: synfuels made from domestic biomass and green hydrogen can cut import reliance.
2. Decarbonization of transport and aviation: synfuels are drop-in solutions compatible with current engines.
3. Rural and circular economy benefits: Gujarat’s CBG and whey-ethanol initiatives boost farmer income and waste-to-value conversion.
📊 5. Summary Table: Key Figures
✍️ 6. Final Thoughts
India is steadily building its synthetic fuels ecosystem—through policy support, corporate investments, and pilot projects. While feedstock constraints and infrastructure shortfalls remain, initiatives in ethanol blending, 2G biofuels, green hydrogen, and syngas scaling point to a transition away from fossil dependence.
By the 2030s, India may emerge as a regional synfuel leader, contributing to energy security, rural livelihoods, and global decarbonization goals—all while leveraging existing refinery infrastructure.