Ethanol Blending Program

Aug. 21, 2024

India is progressing towards its goal of 20% ethanol blending with petrol by 2025-26. However, concerns remain over the impact on food supplies and the fuel efficiency of existing vehicles.

What is Ethanol Blending?
- Ethanol is a biofuel produced through the fermentation of sugars by yeasts or via petrochemical processes such as ethylene hydration.
- It is rich in oxygen content, enabling more efficient fuel combustion in engines.
- Ethanol blending involves mixing ethanol derived from agricultural products with petrol to create a blended motor fuel.
Production of Ethanol in India:
- The Department of Food and Public Distribution (DFPD) is the primary agency promoting the establishment of fuel-grade ethanol distilleries.
- Ethanol is produced from sugarcane-based materials like C & B heavy molasses, sugarcane juice, sugar syrup, surplus rice from the Food Corporation of India (FCI), and maize.
- Globally, over 110 billion litres of ethanol fuel were produced in 2019, with the US and Brazil contributing 84% of this production.
Benefits of ethanol blending:
- Energy security: India imports over 85% of its oil, and ethanol blending could reduce reliance on petroleum imports.
- Economic savings: In 2020-21, India's net petroleum imports amounted to 185 million tonnes at USD 551 billion. Ethanol blending can save billions in foreign exchange.
- Environmental impact: Ethanol is a less polluting fuel, offering similar efficiency to petrol at a lower cost.
India’s Biofuel Policy:
- The Central government amended the Biofuel Policy in 2021-22, targeting 20% ethanol and 5% biodiesel blending by 2025.
- India achieved a 10% ethanol blending rate in petrol by June 2022, ahead of the November 2022 target.
- The programme has saved over Rs 54,000 crore in foreign exchange and led to a reduction of 30 million tonnes of greenhouse gas emissions over the past nine years.
Ethanol blending targets:
- 2025-26 Target: Achieve 20% ethanol blending with petrol.
- Current status: Blending rates have increased to 13%-15%, up from 8% in 2021.
- Capacity expansion: India’s ethanol production capacity has grown to 1,380 crore litres.
Major contributors: Uttar Pradesh is a significant contributor to ethanol blending, with multi-fuel distilleries producing both sugarcane and grain-based ethanol.