The pursuit of a greener planet has led to the rise of a number of innovative organisations that have the potential to bring about transformative changes in our environmental journey. Buyofuel stands out as one such name that can significantly enhance corporate efforts towards attaining higher levels of sustainability. This online platform redefines the bio-fuels landscape by connecting stakeholders and revolutionizing bio-fuel trade. The company recently raised over ₹11.5 crore funding in a Pre-Series A round.
Facilitating seamless transactions between raw material suppliers, manufacturers, and consumers, Buyofuels ensures quick and easy accessibility to bio-fuels, bolstering the circular economy and environmental health. This interview sheds light on the platform’s unique features, its role in waste management, and the potential of various bio-fuels, including solid biofuels and Bio-CNG, as renewable energy transition catalysts. We also discuss the importance of industries such as cement, steel, paper, power, and infrastructure in embracing biofuels to achieve net-zero targets.
Leading Buyofuel from the front is CEO Kishan Karunakaran with an experience of over a decade in the bio-fuels sector. His extensive experience, including founding Quantum Ventures India and collaborating with bio-fuel industry giants, enriches his perspective. In this interview with TheCSRUniverse, Karunakaran details Buyofuel's distinctive attributes, waste-value enhancement, international expansion plans. His insights encapsulate Buyofuel's journey and future aspirations, symbolizing visionary leadership in the pursuit of a sustainable tomorrow.
Read the full interview for valuable insights on the emerging sector and how Buyofuel is working to accelerate bio-fuel adoption in India:
Q. Tell us about Buyofuel- what motivated you to start this platform and how has the response of target buyers and sellers been like so far?
A. Buyofuel officially came to life as a corporation in May 2020. But the idea came to light in the latter half of 2019. However, my journey into the world of biofuels began much earlier. In 2008, I took the initiative to establish a biodiesel manufacturing company, focusing on the commercialization of the second generation of biofuels. However, biofuels were still in their infancy, and people were skeptical and unaware of their potential. UCO (used cooking oil) was employed as a primary raw material to produce biodiesel, unfortunately, they were prone to adulteration. Around 2010-2011, I went to numerous hotels, restaurants and anywhere to spread awareness and collect the raw material for my own plant. Despite such efforts, the quantity of UCOs remained disappointingly low amid their abundance. Then, in order to foster the business manufacturers, the idea of streamlining waste aggregation and developing a biofuel ecosystem through technology began to take shape in my mind.
Our target customer base is very good. We’ve been able to acquire more than 20 of India’s top fuel consumers across varied industries such Pharma, Cement, Paper, Steel, etc. who are closely working with Buyofuel. In fact, they are actively involved in India's transition towards biofuels and net-zero commitments.
Q. Are there any similar platforms in India or elsewhere? What are Buyofuel’s key features and offerings?
A. There are indeed companies with similar offerings that aim to connect manufacturers and consumers of biofuels along with payment subscription working modules.
Buyofuel distinguishes itself by involving all biofuel stakeholders in India and offering a comprehensive range of solid and liquid biofuel products and caters to a wide variety of biofuel needs. Moreover, we ensure a convenient and seamless transaction experience for our users. In addition, Buyofuel stands out by adhering to a zero registration fee policy, making it accessible for all stakeholders to participate. As an organization, we prioritize transparency in our operations, providing a robust system that fosters visibility and clarity for our valued users.
Q. Can you elaborate on the current and future prospects of biofuels in India? What impact could they have on the energy landscape in India?
A. Current prospects set by the government with mandates such as the 10% co-firing of coal replacement products, which encourage the use of biofuels in energy generation. Additionally, India has set targets for the implementation of E20 (20% ethanol) and B10 (10% biodiesel) in the transport sector, signaling a commitment to increased biofuel adoption as well. Looking ahead, the current demand will result in more waste materials being diverted to the biofuel value chain in the future. Also, as technology evolves more waste materials can be efficiently converted into biofuels, increasing the availability and range of feedstock options which will in turn improve the overall efficiency and viability of the bio-fuel industry itself.
Q. Going by the trends on your platform, are there any particular biofuels that exhibit a relatively stronger potential to grow as an alternative fuel in the near future? What indicators/factors make you think so?
A. In the immediate future, solid biofuels such as biomass briquettes, pellets, loose biomass and agri waste will assume a critical role. This will be facilitated by the mandate to incorporate 7-10% of coal replacements and the transition towards an E20-based transport mobility economy. However, in the long term, Bio-CNG will emerge as a highly significant player alongside green hydrogen. As technology advancements drive down the manufacturing costs of Bio-CNG, it will become a more economically viable and sustainable option for energy consumption. This long-term perspective highlights the evolving landscape of bio-fuels.
Q. Your website distinguishes between high value and low value waste- could you explain these concepts a little further and tell us how the value of waste can be enhanced?
A. High-value waste primarily comprises waste used during the manufacturing of liquid biofuels, which may include plastics waste and similar materials. On the other hand, low-value waste typically consists of agricultural residues and other municipal waste with lower market value. The value of waste can be significantly increased through two main factors. Firstly, improved market prices for biofuels can enhance its value, making it economically viable to extract valuable resources from numerous waste streams. Secondly, advancements in technology that efficiently convert low-value waste into high-value fuels can greatly enhance the overall value proposition of these waste materials. By leveraging better pricing mechanisms and innovative conversion technologies, we can unlock the untapped potential of both wastes, creating a more beneficial waste management ecosystem.
Q. Large fuel consumers often face price shocks in the international market. How can adoption of biofuels help them in mitigating these risks? Moreover, how can your platform help them ensure stability in procurement?
A. In general, bio-fuels offer a more stable pricing compared to fossil fuels, which are susceptible to international price shocks. This stability provides clients with a predictable and steady outlook on their energy costs. However, in certain economic circumstances, when there is a significant drop in fossil fuel prices, industries should uphold their environmental commitments and continue moving towards a net-zero future with alternative fuels like biofuels as responsible fuel consumers. This can be achieved through government incentives, support, and mandates that encourage sustainable practices.
Furthermore, our platform directly sources biofuels from waste generators or biofuel manufacturers, ensuring that our clients receive the best possible market prices. In the regions where we operate, we establish a strong supply base, becoming the largest source of bio-fuels.
This allows us to offer our clients price benefits and secure their energy needs in a cost-effective manner.
Q. In your opinion, which sectors/industries are best positioned to adopt biofuels today and why should they make that transition?
A. I think it is crucial for industries such as cement, steel, paper, power, and infrastructure to undergo a transition as they are significant contributors to CO2 emissions. These industries bear a significant responsibility in assisting India meet its net-zero targets. Their proactive involvement and commitment to reduce carbon footprint will not only contribute to the environment but also set an example for other sectors to follow suit.
Q. What suggestions would you give to increase and accelerate the usage of biofuel as an alternative to traditional fuels in India?
A. Enforcing stringent emission regulations for large fuel-consuming industries and introducing a well-functioning carbon credit market in India will play a significant role in the acceleration process. By holding industries accountable for their emissions and incentivizing the reduction of carbon footprint through carbon credits, the usage of biofuels will be encouraged. Moreover, implementing robust monitoring and enforcement mechanisms to ensure compliance with emission standards will create a level playing field and spur the demand for biofuels and also will drive India's transition towards a low-carbon economy.
Q. Buyofuel has seen an encouraging response from investors with the platform raising INR 11.5 crores in pre-series funding. What does your expected growth look like and what key initiatives would help you achieve it?
A. Our expected growth trajectory is quite promising, as we anticipate a 20x growth in the upcoming financial year. The key factor driving our growth will be via initiatives made by the government's mandate to replace coal in high-fuel consuming industries. This initiative opens up significant opportunities for us as a platform facilitating the adoption of biofuels. Additionally, India's vision to transition towards E20 (20% ethanol) and B10 (10% biodiesel) will play an essential role as well. As biodiesel and biofuel manufacturers, along with feedstock suppliers, align with these targets, our platform will serve as an essential marketplace for the sale and distribution of biofuels. These initiatives, combined with our strong investor support, position us well to achieve sizable growth and make a lasting impact in the renewable energy sector.
Q. What kind of impact do you see Buyofuel creating in the coming 3-5 years? Do you plan to expand your operations beyond India and enter international markets in the future?
A. Buyofuel aims to have a substantial impact in the next 3–5 years by facilitating the transaction of at least 13 million tonnes of biofuels and waste, resulting in a reduction of up to 10 million tonnes of CO2 emissions. This effort will help mainstream biofuels as a viable and widely-used renewable fuel, contributing to the decarbonization of industries in India and beyond. Moreover, recognizing that the industrial sector is responsible for over 70% of India's CO2 emissions, we see biofuels as playing a pivotal role in decarbonizing Indian industries and helping India achieve its net-zero goals.
Yes, we do have plans to expand internationally. Buyofuel will initially focus on Europe since they have demonstrated a strong commitment to achieving net-zero emissions. Then, we aspire to expand towards other high-energy fuel-consuming economies and aim to contribute to global efforts on mitigating climate change.
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