Why India must step on the gas with ethanol, Pg14

Key Highlights:

• In 2024-25, India achieved an average ethanol blending ratio of 19.2% in petrol, supplying 1,039 crore litres of ethanol to Oil Marketing Companies (OMCs).
• Ethanol production in India has diversified from solely C-heavy molasses to include B-heavy molasses, direct sugarcane juice/syrup, rice, maize, and damaged foodgrains.
• OMCs have contracted 1,058 crore litres of ethanol for the current supply year, with 766 crore litres from grains and 292 crore litres from sugarcane-based feedstocks.
• The Indian government is urged to increase the ethanol blending mandate from 20% to 30% and incentivize the production of flex-fuel vehicles.

Detailed Insights:

• Brazil's Proalcool programme, initiated in 1975, serves as a model for India, demonstrating how to reduce dependence on imported fuels through ethanol blending.
• India has witnessed three major oil shocks since 1979, highlighting the need for energy security through increased ethanol usage.
• The current taxation structure in India treats ethanol-blended petrol and pure petrol identically, necessitating a revision to bring all ethanol-blended fuels under the GST regime.
• Encouraging the production of flex-fuel vehicles and providing conversion kits for existing vehicles are crucial steps for promoting E30 and E100 fuels.
• India's surplus in sugarcane, rice, and maize presents an opportunity to significantly increase ethanol production for E-30 and E-100 fuels.

Key Concepts Involved:

• Ethanol Blending: Mixing ethanol with gasoline to reduce reliance on fossil fuels and lower emissions.
• Flex-Fuel Vehicles: Vehicles designed to run on gasoline, ethanol, or any blend of the two.
• Oil Shocks: Sudden increases in crude oil prices that can destabilize economies dependent on imports.

Ethanol Blending