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.
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