Biofuels to be 10% of additional oil supply in 2022-28: IEA By Manish Gupta The International Energy Agency (IEA) has forecast global oil demand to go up by 5.9 million barrels per day (mb/d) by 2028. It has also said biofuels (ethanol and biodiesel) will provide 10% of new liquid fuel supply growth to 2028. “Biofuels production expands nearly 600 thousand barrels per day (kb/d) from 2022 to 2028, led higher by significant growth from emerging economies,” the IEA said in its ‘Oil 2023: Analysis and forecast to 2028’ report. Also read: Stock limit on wheat premature: Traders Ethanol and biodiesel supply will increase by 30% in emerging economies from 2022 to 2028, primarily to support rising domestic demand in response to policies designed to reduce oil imports and greenhouse gas (GHG) emissions while using domestic feedstocks such as sugar, corn and palm oil. Growing demand for liquid transport fuels also buoys biofuel production, it said. “India is ramping up output to meet its 20% ethanol blending target by 2025, supported by guaranteed pricing and incentives for new ethanol facilities,” the IEA said. In Indonesia, production expands to meet a 35% biodiesel blending goal, up from 30% in 2022 while Brazil is aiming for 15% for 2026. India, Indonesia and Brazil are all considering additional biofuel policies that provide considerable upside potential to growth. Further, GHG reduction targets also fuel biofuel demand growth in advanced economies like the United States, Europe and Canada, even as slowing transport fuel demand over the forecast period temper the overall increase. Renewable diesel and biojet fuel dominate new supply as it can be produced with low GHG intensity from residues and blended with few modifications. In ethanol’s case many jurisdictions do not have compatible infrastructure, such as pumps, to support higher blending levels, the agency said. Also read: Investors warm up to duration funds as RBI pauses The turbulence in global oil markets, which started with the Covid-19 pandemic and was aggravated by the Russian invasion of Ukraine, has accelerated the transition away from oil, it said, adding the growth in world oil demand is set to slow down during the 2022-28 forecast period. “Investment in clean energy is accelerating at a faster rate than for fossil fuels, helping bring peak oil demand into view,” it said. For every $1 spent on fossil fuels, $1.7 is now spent on clean energy, the agency said in another report. Five years ago this ratio was 1:1. The IEA, in its report ‘World Energy Investment 2023’ released last month, said that the agency estimates investment of around $2.8 trillion in energy in 2023. “More than $1.7 trillion is going to clean energy, including renewable power, nuclear, grids, storage, low-emission fuels, efficiency improvements and end-use renewables and electrification,” IEA said. The remainder, slightly over $1 trillion, is going to unabated fossil fuel supply and power, of which around 15% is to coal and the rest to oil and gas. Petroleum and natural gas minister Hardeep Singh Puri has said biofuels will play a pivotal role in achieving reduction in import of fossil fuel and ultimately help to achieve the target of net zero emission. “The energy security of the country will remain vulnerable until alternative fuels to substitute/ supplement fossil fuels are developed based on indigenously sustainable renewable feedstock,” Puri said in April. India, Brazil and the US are working along with other interested countries to develop Global Biofuel Alliance, a priority area under India’s G20 Presidency.
The move had also prompted the country’s largest organised retailer Reliance Retail to step into the value retail segment with Yousta, which was announced on Thursday. Like Intune, Yousta began its operations in Hyderabad, with plans to expand across the country. Intune has three stores – two in Hyderabad and one in Dombivli, near Mumbai, with plans to add another three more outlets in the coming months.
Nair had admitted on a recent earnings call that the apparel segment in general was witnessing moderation and that the value retail foray by Shoppers Stop could help the company tap into the growing trend for affordable fashion and lifestyle products, aiding sales growth.
That was an important statement for Shoppers Stop, which reported a nearly 37% year-on-year drop in net profit to Rs 14.5 crore in the June quarter of FY24, even as revenue grew only 4.8% versus the previous year to nearly Rs 994 crore.
On a yearly basis, the company had last reported a net profit of nearly Rs 114 crore in FY23 after three consecutive years of loss between FY20 and FY22 due to the Covid-19 pandemic. FY23 topline also jumped nearly 60% year-on-year to Rs 4,022 crore, the highest in six years, its results showed.