Also known as renewable diesel, it is chemically similar to petroleum diesel and can be used in existing diesel engines without modification, making it a viable drop-in alternative.

India’s green diesel market is still emerging but shows significant potential due to government focus on clean energy and emissions reduction. India has a target to reach net zero by 2070. According to Inc42, the country can achieve it by 2050 if renewable energy sources grow more than 5X comprising 76% of the total energy used, make trillions of dollars of investment and harness the entrepreneurial spirit and immense software and data analytics skills that already exist in the country. The country’s National Policy on Biofuels aims to increase the use of bio-based fuels in the energy mix, supporting innovation and investment in renewable diesel production.

Startups are disrupting the green diesel space by addressing key challenges such as feedstock availability, production efficiency and scalability. Innovations include the use of non-edible feedstocks like used cooking oil, algae and agricultural residue. These approaches aim to avoid food-fuel conflicts while promoting circular economy practices. Some startups are also developing decentralised production units to serve local transport and industrial needs efficiently. Key pain points being addressed include high production costs, regulatory bottlenecks and lack of supply chain infrastructure.

Notable Indian startups and emerging companies in the green diesel subcategory include My Eco Energy, Advance Biofuel, Synergy Biodiesel and Oberstech. These players are working to scale renewable diesel production and adoption, contributing to India’s energy security and carbon neutrality goals.

Green Diesel