Energy Security through India’s Ethanol Push

The adoption of sustainable techniques like ethanol blending is helping India secure its energy future. The world’s third-largest energy user has long relied on oil imports to meet its expanding energy needs. This reliance threatens energy security and drains foreign cash. Ethanol blending could help India reduce its oil imports and meet environmental concerns. Sugarcane byproduct ethanol can be combined with petrol to reduce fossil fuel consumption and carbon emissions that cause climate change and public health hazards.

Blending ethanol and fuel began as a 2001 trial operation. Ethanol production stagnated for years due to slow improvement. India just lately realized the full potential of this initiative through extensive reforms. By improving energy security and rural economies, these measures are yielding significant results. Ethanol production gives farmers a new income, benefiting agriculture and rural economies.

The government’s move to extend the 20% ethanol blending objective from 2030 to 2025 shows its commitment to sustainable energy. Hardeep Singh Puri, Minister of Petroleum and Natural Gas, highlighted India’s ethanol blending performance and commitment to sustainable energy at the 7th G-STIC Delhi Conference. He noted that the government has begun planning for the future by investigating goals beyond the 20% ethanol blending target in appreciation of progress. This forward-thinking strategy shows that India is planning for long-term sustainable energy solutions to satisfy future needs.

The fermentation of sugars by yeasts or petrochemical processes like ethylene hydration create ethanol, a major biofuel. It is employed as an alternative fuel, chemical solvent, and organic compound synthesiser in many sectors. Antiseptic and disinfection uses add to ethanol’s versatility.

Ethanol is crucial to India’s increased energy consumption due to a growing economy, population, urbanization, and lifestyles. As of March 2024, 98% of road transportation fuel comes from fossil fuels and 2% from biofuels like ethanol. Fossil fuel dependence raises energy security, foreign money outflow, and environmental concerns.

As a domestic biofuel, ethanol presents a strategic option to cut fossil fuel imports. Biofuels like ethanol are sustainable and environmentally benign, making energy cleaner when utilized appropriately. Ethanol production and use help national goals like job creation, “Make in India” promotion, Swachh Bharat Mission support, and farmer income doubling. It also generates wealth from garbage, boosting India’s economy and energy security.

Prime Minister Narendra Modi has implemented sweeping reforms to improve energy security, tackle climate change, and strengthen the rural economy. The EBP Programme initially proposed 20% ethanol blending in petrol by 2030. The Cabinet Committee on Economic Affairs (CCEA) raised its aim to 2025 in 2020, demonstrating the government’s commitment to ethanol use.

India’s Ethanol Blended Petrol (EBP) Programme has doubled ethanol production capacity in four years to 1,623 crore litres as of September 18, 2024. This large rise shows the government’s commitment to ethanol’s energy role.

In the 2013-14 Ethanol Supply Year (ESY), which runs from November to October, 38 crore liters of ethanol were blended with petrol at 1.53%. Ethanol blending increased dramatically as the government implemented several schemes. Blending volume rose to 302.3 crore litres in ESY 2020-21, reaching 8.17%. Around the same time, gasoline usage jumped 64%.

ESY 2022-23 saw blending rise to over 500 crore liters, reaching 12.06%. As of August 31, 2024, 545.05 crore liters of ethanol had been blended in ESY 2023-24. Ethanol blending increased from 1.53% in 2014 to 15% in 2024, a notable rise.

This success inspired the government to aim for 20% blending by 2025. This project has resulted in significant savings of ₹1,06,072 crore in foreign exchange, 544 lakh metric tons of CO2 emissions reduction, and 181 lakh metric tons of crude oil substitution during the past decade. The scheme has had a significant economic impact, with OMCs disbursing ₹1,45,930 crore to distillers and ₹87,558 crore to farmers.

By 2025, 20% ethanol blending will require 1,016 crore liters of ethanol. Estimated ethanol demand, including other uses, is 1,350 crore litres. By 2025, ethanol output must reach 1,700 crore litres, assuming 80% plant efficiency. The government estimated the demand for ethanol needed for 20% blending based on the increase of petrol-powered vehicles, primarily two-wheelers and passenger vehicles, and Motor Spirit sales.