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Category: Sustainability

  • The Financial Implications Of Rising Natural Gas Prices

    The fact is that India is in dire need of petrol to fuel its clean energy future.

    Without even realising it, you depend on something necessary every day before you begin to complete your task. It helped grow the veggies on your plate, heated the water in your shower, lit the stove in your kitchen and even powered the cab you rode to work.

    We are discussing natural gas.

    We’re discussing it since it will get more expensive. The government changed how natural gas prices are calculated starting this month (April 2025), which is the first increase in two years. Let’s start at the top to understand why.

    You see, methane (CH4) makes up the majority of natural gas. It is extremely flexible and burns cleaner than other fossil fuels. It powers industries like steel and ceramics, is used in transportation, produces cooking gas, and creates fertilisers that are vital to Indian agriculture. Nevertheless, it barely makes up 6% of India’s overall energy usage. By 2030, India hopes to triple this percentage to 15%. However, because we haven’t arrived yet, we import almost half of our gas, primarily in the form of LNG. The situation becomes complex at that point. We are continuously vulnerable to fluctuations in world prices because we import LNG.

    For instance, in 2020. Even though it cost them $3.70 to extract natural gas, ONGC, the largest gas producer in India at the time, was selling it for $2.39 per MMBTU. They were essentially losing money on each item they sold. And the situation was the same for other gas producers.

    Sidebar: “million British Thermal Units” is what MMBTU stands for. It’s merely an elegant method of determining energy content. This unit is frequently used when discussing petrol pricing.

    The explanation was straightforward. Control. You see, domestic petrol prices were determined by a formula that averaged international prices from the US, Canada, the UK and Russia rather than being determined by the market. The government would calculate a new rate every six months by averaging such prices. Thus, the formula pulled Indian prices down as worldwide prices plummeted during the pandemic. For comparison, the price of domestic petrol was only $1.79 per MMBtu in October 2020.

    Then came the recovery. Demand for petrol increased when economies reopened. Additionally, prices skyrocketed in 2022 after Russia invaded Ukraine. Europe rushed to switch to LNG to replace Russian gas. The spot price of LNG in Asia suddenly skyrocketed, reaching $70 per MMBtu at one time. And once more, India got caught in the crossfire due to its growing reliance on imports. Because of the pricing mechanism, which either made it impossible for manufacturers to make ends meet or passed on excessive prices to consumers.

    To fix it, the government then summoned the Dr. Kirit Parikh panel. Additionally, the new formula made things simpler when it was adopted in April 2023. Instead of being benchmarked to faraway gas surplus countries, domestic gas prices will now be set at 10% of the Indian crude oil basket. To protect producers, there was a $4 floor price, and to protect consumers, there was a $6.50 ceiling. The cap may increase by 4% a year starting in April 2025 and continue until 2027, when petrol prices are completely deregulated. It was the ideal solution—neither too high nor too low. At last, ONGC and Oil India ceased to lose money. Price stability was granted to city gas distributors such as GAIL, IGL, and MGL. Additionally, consumers were protected against worldwide fluctuations.

    The following phase is now being demonstrated. As planned, the government increased the cap from $6.50 to $6.75 per MMBTU for the first time in two years. Furthermore, even though a 4% increase might not seem like much, it adds up.

    How?

    Well, because they make more money per unit, upstream producers like ONGC profit. However, the increased expenses could have to be passed on by city gas distributors, who provide compressed natural gas (CNG) and piped natural gas (PNG). Bills for industrial users will be higher. More subsidies will be demanded by fertiliser industries. Additionally, the government’s already limited budget will need to be adjusted to accommodate it.

    However, this walk isn’t taking place alone. The cost of petrol is also increasing globally. Additionally, a number of factors are contributing to the increase.

    The first is the severe weather. Heat waves in Europe, cold snaps in the US, and droughts in China can increase demand (more heating or cooling) or severely impair the supply of wind or hydropower. And guess what steps in to fill the void left by renewables? Natural gas, indeed.

    Next is the increase in LNG shipments from major producers, including Australia, Qatar, and the United States. Indeed, since this increases the world’s supply, more LNG exports seem like a positive development. However, the spot market, where petrol is bought and sold for immediate delivery, becomes more competitive. Stable pricing benefits nations with long-term contracts or fixed-price agreements for a predetermined duration. However, because demand for LNG keeps the market competitive and tight, nations like India, which rely partly on spot market imports, face higher and more erratic pricing.

    Lastly, there is the depreciation of currency. India pays for LNG in US dollars. Even constant dollar prices lead to higher rupee costs because the dollar currently trades at about ₹85. Essentially, everything imported costs more when the currency is weak. For this reason, many petrol marketing firms are advocating for setting domestic petrol prices in rupees instead of dollars.

    When combined, these obstacles create a precarious situation for India’s aspirations regarding natural gas. Both the government and producers encounter challenges when domestic pricing does not always align with international patterns.

    So, you ask, what’s the way out?

    India is attempting to hedge its bets, to start. We’re increasing output at home. Natural gas corporations are growing their oil marketing operations. Long-term LNG contracts are being signed by businesses to steer clear of the erratic spot markets. To increase access, we are constructing additional LNG terminals, pipelines, and municipal gas networks. Additionally, we’re looking into alternatives like green hydrogen, electric cars, and blended ethanol fuel.

    However, there remains a long road ahead. While demand continues to rise, India’s gas output has remained mostly unchanged for years. By 2030, India’s demand for natural gas is expected to increase by 60%, according to the International Energy Agency (IEA). Additionally, due to restricted domestic production, LNG imports will need to more than quadruple to 65 billion cubic meters (bcm) per year by the end of this decade to stay up. Furthermore, growing infrastructure requires a lot of resources and has controlled price fluctuations.

    Thus, even under ideal circumstances, we will not be able to achieve self-sufficiency very soon.

    Nevertheless, India can get knowledge from other nations. For instance, Japan, the second-largest LNG importer in the world, is shifting away from strict long-term agreements and towards pooling supply and facilitating cargo swaps with South Korea and Italy to bring about greater price flexibility. Brazil has increased the number of cars that run on ethanol. Europe is investing more in renewable energy and diversifying its LNG exports. And because of advanced shale gas exploration techniques, the United States is currently the world’s largest producer of gas.

    Although India is unable to duplicate all of these methods, we can nevertheless advance more quickly on the fundamentals, such as increasing domestic supply, improving pricing strategies, and making investments in more intelligent infrastructure.

    The fact is that India is in dire need of petrol to fuel its clean energy future. However, petrol is becoming more expensive, messy, and unreliable. In other words, controlling it better rather than simply using more of it is the true challenge.

    And this slight increase of 4% in April? Perhaps it serves as a reminder that the days of inexpensive, reliable petrol may be coming to an end.

  • Are Waste Tyres From The UK Causing An Issue In India?

    In the first half of FY25 alone, India exported tyres valued at over ₹12,000 crores.

    With an annual production of almost 20 crore tyres, India is one of the biggest tyre-manufacturing countries in the world. Additionally, the business is supported by both domestic and foreign demand for tyres. Do you know where the majority of them end up? In terms of value, about 15% of India’s tyre exports come from the United States. Closely behind are France, Italy, Germany, the United Arab Emirates, and Brazil. Additionally, Colombia is its largest customer in South America for motorcycle tyres.

    Here’s the catch, though. Many Western countries offer India their worn, end-of-life tyres (ELTs) in exchange for the new tyres it sells.

    In essence, these ELTs are now rubbish that is being transferred to India for recycling. To put it mildly, their sheer bulk is astounding. To put this into perspective, 800,000 tonnes of scrap tyres were sent to India in 2023 alone. Another disturbing statistic is this one. More than 30% of the world’s discarded tyres are bought in India. I’ll address the reason a bit later in the narrative if you’re curious.

    However, the fact that over half of the tyre waste sent to India originates in the UK is upsetting environmental communities and tyre organisations in both India and the UK. Additionally, the amount of pollution being produced is concerning.

    You ask, how is that?

    As you can see, the purpose of this tyre debris that ends up in India is recycling, and tyres undergo a significant change when processed correctly.

    Consider steel, for example. It makes up roughly 20% of a tyre. After extraction, it is cleaned and shipped to smelters, where it is reused in manufacturing and construction. Next, there are fibre and nylon, which account for around 15% of the mixture and are utilized in carpets, fibreglass, and cleanup products like oil spill mats and absorbent pads.

    The majority of the remainder is rubber. However, that also doesn’t go to waste. In controlled industrial settings, some of it is converted into tyre-derived fuel (TDF), which is made from shredded scrap tyres and used in addition to conventional flames. Then there is crumb rubber, which is used for speed bumps, road surfaces, and athletic tracks, and rubber mulch, which is popular for gardens and playgrounds. Further processing turns it into rubber powder, a high-performing substance utilised in sealants, plastics, and even brand-new rubber goods.

    In other words, almost every component of a recycled tyre finds a new home and a practical use.

    But the issue arises when these ELTs—particularly those from the UK—find their way into illegal pyrolysis facilities all around India.

    To put it simply, pyrolysis is similar to intense cooking. at extract fuel and other byproducts, tyres are burned at about 500°C in an oxygen-free environment. However, if done incorrectly, it becomes a catastrophe for the ecosystem. These artificial plants emit a variety of pollutants, including furans, dioxins, benzene, and heavy metals, many of which are extremely carcinogenic. These unlawful setups can be identified by the surrounding contaminated streams, decaying flora, and heavy soot in the air.

    Naturally, the factory owners profit. However, they don’t precisely prioritise public health and environmental issues.

    That raises the issue, though: Why is the UK disposing of its tyre waste in India?

    It’s not as if they don’t have the facilities to recycle tyres at home. They do. But it’s just less expensive to send them elsewhere. The cost of purchasing shredding equipment is high, and Indian pyrolysis facilities are prepared to pay extra for used tyres.

    In the past, scrap tyres were compacted into blocks for drainage beds, embankments, and road foundations in the UK. However, because they are unable to match the pricing offered by Indian recyclers, the businesses producing these blocks have either closed or are having difficulty. The trade is flourishing when you combine this with the growing demand for industrial fuel, low-cost Chinese-made pyrolysis machinery (which would otherwise cost tens of millions of dollars) that can be purchased for as little as $30,000, and lax restrictions.

    The actual kicker is right here. The Basel Convention does not classify tyres as hazardous waste. Therefore, there are very few restrictions on the worldwide tyre trade unless the importing nation expressly forbids them.

    The irony is that, according to a 2021 MoHUA assessment, India currently produces a huge amount of trash tyres—roughly 2,75,000 per day. However, India keep importing millions more, which makes the situation worse.

    The rules in the UK are also absurdly loose. Exporters just list their buyers, and the UK verifies the legitimacy of these buyers with India. However, there is no accountability, no tracking, and no official export data after that.

    In the UK, being a tyre seller is also incredibly simple. Even though used tyres are ostensibly used for building, traders are nonetheless transporting them directly to India; all you need to do is fill out a straightforward “U2 environmental exemption” form and gather them. The UK gets rid of the tyres as soon as they leave British soil.

    However, the Indian government has begun to take harsh measures. The importation of discarded tyres intended for pyrolysis has been prohibited by the Ministry of Environment. Following orders from the National Green Tribunal, the Central Pollution Control Board has already closed 270 unlawful pyrolysis facilities in 19 states. Additionally, a new Extended Producer Responsibility (EPR) framework has made tyre producers accountable for the collection and appropriate disposal of discarded tyres, adding still another level of accountability.

    However, the issue still exists in spite of their attempts. The Automotive Tyre Manufacturers’ Association (ATMA), which notes that waste tyre imports have increased fivefold since FY21, is now advocating for a total ban on these imports.

    The UK now bears the responsibility. The situation in India may be managed if the UK adopted Australia’s entire ban on selling these ELTs to other nations.

    The question is whether India will step in before the crisis worsens if this doesn’t occur.

  • Space: The Final Junkyard?

    Space debris isn’t just a safety hazard; it’s an economic problem too.

    Humans seem to have expanded their littering habits beyond Earth, turning space into a rapidly growing cosmic junkyard. Since the launch of the first satellite, Sputnik 1, in 1957, the Earth’s orbit has become increasingly cluttered with debris from failed missions, collisions, and even deliberate destruction of satellites.

    A History of Space Debris

    The problem started innocently enough, with space exploration pioneering missions like Sputnik. But as the number of launches increased, so did the debris. From discarded rocket stages to fragments from collisions, the clutter has been accumulating for decades. Even tiny flecks of paint shed by rockets can become dangerous when travelling at orbital speeds.

    One stark example of intentional debris creation is India’s 2019 anti-satellite missile test, Mission Shakti, which destroyed a satellite in low Earth orbit. While demonstrating technological prowess, this act added significantly to the debris problem. Similar actions by other nations, such as the US, Russia, and China, have further exacerbated the issue.

    The Domino Effect of Space Junk

    When debris collides, it can create a chain reaction of more collisions, generating even more debris in a phenomenon known as the Kessler Syndrome. While some of this debris burns up in the atmosphere, a large portion remains in orbit, potentially for decades. This poses a growing risk to functioning satellites and spacecraft.

    With nearly 10,000 satellites currently in orbit—3,000 of which are defunct—and predictions of 20,000 satellites by 2030, the risks of collisions and further debris generation are increasing at an alarming rate.

    The Economic and Safety Implications

    Space debris isn’t just a safety hazard; it’s an economic problem too. Satellites are critical for communication, navigation, and scientific discovery. If key orbital paths become too cluttered, the resulting disruptions could lead to financial damages exceeding $550 million over the next five years.

    Even private companies like SpaceX are feeling the impact. Its Starlink project, which operates thousands of satellites, reported performing nearly 50,000 collision-avoidance manoeuvres in the first half of 2024 alone. Such frequent adjustments underscore the growing challenge of managing crowded orbital highways.

    A Call for Cooperation

    The United Nations has called for greater collaboration among nations, space agencies, and private companies to tackle the space debris crisis. Sharing orbital data transparently, such as satellite locations, could help prevent collisions. However, concerns over national security and commercial confidentiality have hindered these efforts, leaving the space community fragmented.

    Future Solutions and Challenges

    Efforts to clean up space are underway but face significant technical and economic hurdles. Innovations like active debris removal systems and self-destructing satellites are being explored. Still, the cost and complexity of such solutions mean widespread adoption remains a distant goal.

    The stakes are high. If left unchecked, the debris problem could render key orbital paths unusable, stifling future innovations in space exploration and communication.

    The Way Forward

    As space becomes an increasingly vital domain for humanity, addressing the debris problem is no longer optional. It requires international cooperation, robust regulations, and innovative technological solutions. The alternative is a future where progress hits a wall of junk.

    Space may be vast, but our usable orbit is not. Cleaning it up will ensure that the final frontier remains accessible for generations to come.

  • Who Will Grow Our Food?

    We could face a major food crisis with older farmers retiring and fewer younger people stepping in.

    In India, the majority of farmers today are above the age of 40. This seemingly simple sight brings out the next big challenge for India’s agriculture sector and for all of us surviving on the food they produce — Indian farmers are ageing.

    Indian farmers were 50.1 years old on average in 2016. This is concerning since the present generation of farmers is leaving the field. It means we are approaching a situation where one of the biggest food consumers will be left with few farmers.

    Across the globe, the farming population is ageing without younger replacements. The average age of a farmer in the US is 58. In Japan, it’s 67. And one-third of European farmers are over 65. The situation is similar in India, where less than 0.5% of undergraduates enrol in agricultural courses.

    We could face a major food crisis with older farmers retiring and fewer younger people stepping in.

    Farming As A Career Choice? 

    The youth among the farming communities are hardly interested in agriculture — so much so that a majority of students graduating from agricultural universities switch to other professions. 

    As it emerges, those who work on family farms or are in some other way involved in farming are also doing so with compulsion.

    We can’t expect young people to become farmers overnight. Instead, we can start by addressing the three common fears that are known to hinder youth participation in agriculture – the seasonal nature of income, fear of risk, and lack of quick access to financing facilities.

    Along with the evolving needs of customers, farming practices have also changed in recent years. Globally, people are progressively returning to their origins in several ways. They want to appreciate their history, long-standing customs, and uncomplicated environment, but most of all, they want to live a more natural, healthier lifestyle. The COVID-19 pandemic is mostly to blame for this shift in lifestyle choices, which now include growing your own food or spending more money on organic and chemical-free products. People became more health vigilant as a result of the unanticipated chain of events that followed this disease. Meanwhile, the later lockdowns forced people to think out of the box, set up home gardens, and start their own little organic food ventures. And with good reason—there are lots of business prospects for today’s visionaries in this drastically altered consumer market.

    A Few Stories To Inspire You

    According to an article on India.com, Naman Bhurani, the creator of the organic food company Vediko, finished his business studies degree, became an organic farmer, and launched his firm at the age of 21.

    Organic or not, this mother-son team’s tale of earning Rs. 40,000 a day will surely motivate you if you’re determined to pursue unusual farming as a career option.

    According to an Indiatimes report, Jithu and his mother Leena are using their high-tech production unit and spawn testing facility in Pirovam, Ernakulam District, Kerala, to enable them to produce almost 100 kg of mushrooms every single day. In just four years after starting as a hobby in a corner of their home, it has grown into a thriving business. To put it simply, if you have the drive and determination to succeed, nothing is impossible.

    The time has come to unleash another agricultural revolution and to emphasize Mahatma Gandhi’s adage, “If you give me rice, I will eat today. If you teach me how to grow rice, I will eat every day!”

  • Fueling Sustainability: India’s Push for a Global Biofuel Alliance at G20

    In a world increasingly aware of the environmental repercussions of fossil fuels, the search for cleaner, sustainable alternatives has intensified. One promising solution is biofuel. Derived from renewable resources like plants and algae, biofuels have emerged as a vital player in the transition towards a more sustainable energy future. As the world grapples with climate change, the question arises: Do we need a global biofuel alliance? India is taking a proactive stance on this issue, pushing for a global biofuel alliance at the G20 summit.

    Biofuels: An Eco-Friendly Alternative

    Biofuels are liquid fuels made from organic materials, offering a cleaner and greener energy source compared to traditional fossil fuels. They produce significantly fewer greenhouse gas emissions when burned, thus contributing to mitigating climate change. Furthermore, biofuels can be produced from various feedstocks, reducing dependency on crude oil and promoting energy security.

    The Need for a Global Biofuel Alliance

    As the world recognizes the potential of biofuels in combating climate change, the idea of a global biofuel alliance becomes increasingly pertinent. The primary reasons for this are:

    1. Resource Optimization: Different regions possess diverse feedstock potentials. For instance, sugarcane for ethanol in Brazil, corn for ethanol in the United States, and palm oil for biodiesel in Southeast Asia. A global alliance can ensure efficient resource allocation, helping nations focus on their strengths and reduce competition for limited resources.
    2. Standardization: Biofuel production standards can vary from one region to another. Establishing a global biofuel alliance can harmonize these standards, ensuring quality and consistency across the industry. This simplifies international trade and promotes technological advancements.
    3. Research and Development: Collaborative research efforts can accelerate technological advancements in biofuel production, making it more efficient and cost-effective. A global alliance can facilitate knowledge exchange and foster innovation.

    India’s Initiative at G20

    India, a prominent member of the G20, has taken a bold step by advocating for a global biofuel alliance within this influential international forum. The country has shown its commitment to biofuel adoption through initiatives like the National Biofuel Policy and the promotion of second-generation biofuels made from non-food feedstocks. At the G20, India is pushing for the following:

    1. International Cooperation: India is calling for G20 nations to come together and create a framework for international cooperation in biofuel production, trade, and research.
    2. Resource Mapping: India is proposing the creation of a global database that maps regional biofuel feedstock potentials, helping nations make informed decisions on resource allocation.
    3. Sustainable Standards: India advocates for developing globally recognized sustainability standards for biofuel production to ensure that the environmental and social aspects are adequately addressed.

    Conclusion

    As the world grapples with climate change and the need to transition to cleaner energy sources, biofuels offer a promising solution. According to the U.S. Environmental Protection Agency (EPA), the use of biofuels in transportation reduces greenhouse gas emissions by 39% compared to traditional gasoline. India’s proactive stance in pushing for a Global Biofuel Alliance at the G20 summit is a significant step towards harnessing the full potential of biofuels on a global scale. It’s a collaborative effort that can drive us closer to a sustainable and eco-friendly energy future. While challenges exist, the benefits of a united effort in promoting biofuels far outweigh the obstacles, making India’s initiative at the G20 a catalyst for positive change in the world’s energy landscape.