India’s road to sustainability: Why alternative fuels matter beyond electric vehicles

By Suyash Gupta* 

India’s worsening air quality makes the shift towards clean mobility urgent. However, while electric vehicles (EVs) are central to India’s strategy, they alone cannot address the country’s diverse pollution and energy challenges.

EVs reduce tailpipe emissions in cities, but the wider picture is more complex—electricity generation, legacy vehicles, heavy transport, and rural energy access all shape India’s emissions trajectory. A broader approach that includes alternative fuels such as ethanol, auto LPG, biodiesel, compressed biogas, and green hydrogen is essential.

EV Promise and Practical Limits

Government targets envisage EVs making up 30% of vehicle sales by 2030 under FAME-III. Sales are rising—up 27% in 2024, particularly in two- and three-wheelers in urban centres. Still, the transition faces structural constraints.

Around 70% of India’s power generation is coal-based. For now, charging an EV often shifts emissions from the tailpipe to a power plant rather than eliminating them. Moreover, charging infrastructure remains uneven, with roughly 26,000 public chargers nationwide, while 65% of India’s registered vehicles are located in rural and semi-urban areas.

Heavy-duty transport—commercial vehicles, long-haul trucks, and aviation—accounts for about 70% of transport-sector emissions and is difficult to electrify because batteries remain costly, heavy, and limited in range. India also has a road fleet exceeding 300 million vehicles. A viable mobility strategy must therefore accommodate existing petrol and diesel vehicles rather than rely solely on new electric sales.

Ethanol: Cleaner Fuel with Immediate Impact

Ethanol blending at 20% (E20) is already rolling out nationwide. Produced from sugarcane, molasses, grains and, increasingly, agricultural residue, ethanol can reduce emissions by 15–20% while decreasing reliance on crude imports by an estimated USD 4 billion annually. Flex-fuel vehicle compatibility enables rapid deployment and provides farmers new revenue streams, with potential to reduce residue burning in northern India.

Biodiesel and Compressed Biogas

Biodiesel sourced from used cooking oil or non-food crops aligns with India’s target of a 5% blend in diesel by 2030. Pilots in Rajasthan indicate reductions of nearly 30% in particulate and gaseous pollution in public buses and stationary engines.

Compressed biogas (CBG)—derived from agricultural waste, cattle dung, and municipal sludge—offers a scalable rural solution. Vehicles running on CBG deliver performance similar to CNG, and early adoption by Indian Oil suggests strong promise for freight, tractors and auto-rickshaws, especially outside metros.

Auto LPG and Green Hydrogen

Auto LPG is a mature and widely deployed transition fuel, with 30 million vehicles using it globally and nearly 80,000 refuelling stations. India has around 2,500 stations. For three-wheelers and taxis, Auto LPG can cut particulate pollution by up to 80% and lower nitrogen oxide emissions substantially, making it a near-term option to curb urban smog.

Green hydrogen produced from renewable power can support sectors that batteries struggle to serve. NTPC and other public-sector entities are testing production and supply chains, with initial plans estimating 5,000 tonnes of output by 2026 for buses, trains and industrial use. As costs fall—possibly halving by 2030—hydrogen could become a pillar of decarbonising heavy freight and rail.

A Diversified Transition Strategy

India’s mobility needs reflect its scale: 1.4 billion people, diverse terrain, and uneven power availability. A practical roadmap includes electrification where feasible, biofuels for legacy and medium-duty vehicles, and hydrogen for long-haul transport.

Key policy levers include:

- Expanded R&D support and public-sector innovation

- Incentives for retrofits and flex-fuel engines

- Accelerated rollout of alternative-fuel retail infrastructure

- Clear long-term regulatory signals, such as BS-VII emission standards

Such a multi-fuel pathway could reduce oil imports by nearly one-fifth, enhance energy security, and generate significant rural employment in decentralized fuel production. Turning crop residue and organic waste into fuel also channels economic value back to farm communities.

India’s clean mobility transition will not be a single-technology shift. It requires a balanced portfolio—EVs, biofuels, gaseous alternatives and hydrogen—deployed where each performs best. Only through such a mixed approach can India meaningfully reduce emissions, cut costs, and build a resilient, sustainable transport future.

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*Director General, Indian Auto LPG Coalition