Backed by a vision of creating an empowering platform for trading of biofuel-based commodities, Kishan Karunakaran is steering the growth of Buyofuel as its CEO. A visionary leader, he comes with over 12 years of experience and a proven track record as a biofuels entrepreneur.
In an exclusive interaction with Rahul Koul, Chief Editor, BioVoice News, Kishan Karunakaran sheds light on the relevance of digital platforms for India’s clean energy targets, biofuel market in India, regulatory challenges, and policy framework
What is the estimated market size for biofuels in India currently, and how much of this is accessible to digital platforms like Buyofuel?
India’s biofuel market is currently valued at around USD 6 billion and is poised for rapid growth due to government mandates like 20% ethanol blending and increased adoption of biodiesel and bio-CNG. While the majority of this market remains traditionally organized—dominated by OMCs and large industrial users—digital platforms like Buyofuel are beginning to carve out a significant share. Buyofuel has already achieved a monthly transaction capacity exceeding 600,000 MT, translating into a meaningful portion of the national biofuels trade. It claims potential access to 25% of India’s USD 47 billion biofuel opportunity, particularly by digitizing procurement, quality assurance, and traceability.
With rising emphasis on sustainability and the decentralization of fuel sourcing, digital platforms can further unlock latent supply chains—like used cooking oil or agri-residues—and connect fragmented suppliers to consistent demand. The digital penetration will expand as policy frameworks mature and platforms gain institutional legitimacy and traceability infrastructure.
How do you see the demand evolving for different fuel types: biomass briquettes, biodiesel, bio-CNG, or next-gen options like SAF (sustainable aviation fuel)?
The demand for biofuels in India is diversifying. Biomass briquettes and pellets remain foundational in thermal industrial applications, especially among MSMEs seeking coal alternatives. Biodiesel, largely driven by UCO, has seen modest growth due to blending limitations and supply chain constraints. However, as the government targets 5% biodiesel blending by 2030, this segment could double in demand. Bio-CNG, on the other hand, is witnessing an aggressive push—with 5,000 plants targeted under SATAT by 2028—making it the fastest-growing fuel type, especially for transport and urban use. Ethanol remains the most institutionalized biofuel with clear policy direction.
Next-gen fuels like Sustainable Aviation Fuel (SAF) are still in the pilot phase but hold immense promise for decarbonizing aviation. As global airline mandates kick in, SAF demand could grow exponentially post-2030. Digital platforms can play a key role in aggregating feedstocks, enhancing traceability, and supporting the certification processes required for these next-gen fuels.
“India’s biofuel market is currently valued at around USD 6 billion and is poised for rapid growth due to government mandates like 20% ethanol blending and increased adoption of biodiesel and bio-CNG.”
What role do you see platforms like Buyofuel playing in India achieving its targets like 20% ethanol blending by 2025 and emissions reduction by 2030?
Buyofuel and similar digital platforms are crucial to India’s clean energy targets. For the 20% ethanol blending goal by 2025 and net emissions reduction by 2030, achieving operational efficiency, feedstock traceability, and transparent transactions is vital. Platforms like Buyofuel digitize supply chains, aggregate demand from industries and fuel blenders, and offer traceability through tools like BuyoTrace. This not only helps in ensuring fuel quality but also supports sustainability audits—critical for OMCs and ESG-conscious buyers. Moreover, digital aggregation enables scale from decentralized sources such as UCO, crop residues, and municipal waste, which often go untapped.
As the government increasingly turns toward market-based solutions, Buyofuel can serve as a tech-enabled bridge between policy ambitions and on-ground execution. Its ability to onboard small players, verify sustainability claims, and match buyers and sellers at national scale makes it a catalytic force for delivering on India’s biofuel blending and decarbonization commitments.
Has India’s National Bioenergy Programme (or any specific state policies) helped accelerate the biofuel marketplace? Are we really doing enough to incentivize the production and use of biofuels? What more needs to be done?
India’s National Bioenergy Programme and schemes like RUCO and SATAT have provided a robust policy foundation. Several states—like Gujarat, Maharashtra, and Punjab—have introduced financial incentives for bio-CNG and ethanol production, and are easing land and regulatory barriers. These measures have accelerated plant setups and feedstock mobilization. However, while the policy direction is positive, the incentive structures remain uneven. Biodiesel, for instance, still lacks parity with ethanol in terms of mandates and price guarantees. Additionally, second-generation biofuels and SAF remain capital-intensive with limited fiscal support. More needs to be done—especially around assured offtake, minimum support prices for biomass, and integration of small suppliers through formal channels.
Direct viability gap funding, digitized trading systems, and carbon credit mechanisms would also help. Ultimately, consistent, centralized execution and better coordination between the Centre and states are necessary to convert India’s ambitious biofuel vision into a scalable and sustainable market reality.
“Platforms like Buyofuel digitize supply chains, aggregate demand from industries and fuel blenders, and offer traceability through tools like BuyoTrace.”
