"Rolling out of carbon credits and green credits mechanisms as early as possible for conversion from fossil fuel to green fuel, I think could be a great policy initiative and support for this transition to biofuels," said Baxi in an interview with ET Energyworld.

 

BioFuelCircle, which orchestrates the collection and sale of agricultural waste for biofuel production, has enabled approximately ₹200 crore in transactions on its platform, directly benefiting farmers with 10% of these revenues.

 

The company's innovative supply chain approach leverages agricultural residues from crops such as rice and cotton, among others, procured post-harvest from over 20,000 farmers in states like Maharashtra, Gujarat, Uttar Pradesh, Punjab, and Tamil Nadu. With Gujarat as its largest base, BioFuelCircle's model focuses on incentivizing farmers for their contributions, establishing nearby storage facilities, and streamlining the purchase process for biofuel companies.

 

The CEO outlined the supply chain model developed by BioFuelCircle, which involves incentivizing farmers, ensuring proper storage, and making biomass easily available for biofuel companies. Baxi noted that consistent quality and a reliable supply of biomass are major challenges that need to be addressed to scale biofuel adoption in the manufacturing sector.

 

Looking to the future, Baxi shared ambitious expansion plans for BioFuelCircle, aiming to reach a million farmers and extend operations to all Indian states by 2028. The company expects a substantial growth in transactions and revenue, with a fundraising round in the pipeline to finance these initiatives.

 

On the environmental front, Baxi emphasized the importance of providing farmers with dependable alternatives to stubble burning, a significant source of pollution, and the role of technology in creating trust in the biomass collection system.

 

Regarding food security, Baxi stressed the need for policies that incentivize the use of waste for biofuel rather than food, thus ensuring that biofuel production does not compromise food supplies or cattle feed resources.