India increases biofuel usage amid increasing crude supply risks

India wants to use more 'biofuels' to improve its energy security, as disruptions in 'crude supply' are pushing 'oil prices' higher, according to Tarun Kapoor.

Kapoor said at an industry conference that the Iran war had highlighted the difficulties of maintaining a continuous supply of crude oil.

Iran announced that it had attacked 10 ships in the Strait of Hormuz on Wednesday after the U.S. destroyed five Iranian oil tanks, the largest declared attack by both sides since the beginning of the six-month war.

Brent crude 'futures' breached $100 per barrel on Wednesday, the first time this has happened since late July.

Kapoor stated that India must use all domestic resources available to improve its energy security.

India, which is the third largest oil consumer and importer in the world, is testing a blend of biofuels. It blends ethanol and gasoline.

India uses mainly corn, rice and sugarcane as feedstocks to produce ethanol.

New Delhi also wants to adopt flex-fuel cars in order to reduce its reliance on expensive energy imports. It is also promoting ethanol blends for gasoline.

However, independent analysts and motorists are concerned that higher ethanol levels could affect engine performance, fuel efficiency and increase the risk of contamination.

(source: Reuters)