Ethanol Blending in India – Current Debate and Policy

Background

• Ethanol Blending Programme (EBP) launched in 2003, with major push under the National Policy on Biofuels (2018).

• Objective: Reduce crude oil import dependency, cut carbon emissions, boost farmers’ income by using sugarcane, damaged foodgrains, and agricultural residue for ethanol production.

• Targets:

• 20% blending by 2025–26 (advanced from 2030).

• Achieved 12% blending in 2023–24.

• Like ethanol, India will adopt a phased approach to SAF adoption. A blending mandate has already been initiated, with a target of 1% blending for international flights by 2027, increasing to 2% by 2028, and scaling further as supply stabilizes.

• Claim: Ethanol-blended petrol may reduce vehicular efficiency (fuel economy) and could harm engines.

• Government Response:

  • Petroleum Minister Hardeep Singh Puri termed it a "vilification campaign" driven by vested economic interests.

  • Drew parallel to earlier skepticism when Compressed Biogas (CBG) was introduced.

  • Called for trust in Indian farmers and biomass-based energy sources.

• Industry Backing: Indian Sugar and Bio-Energy Manufacturers Association says ethanol blending is:

  • Scientifically validated and globally proven.

  • Strategically important for energy security.

  • A driver for farmers’ welfare.

• Fuel Efficiency Impact: Studies by ARAI & global benchmarks (US, Brazil) show only marginal reduction (1–2%) in mileage with 20% blending, often offset by cleaner combustion and lower maintenance.

• Emission Reduction:

  • Ethanol burns cleaner, reducing CO, hydrocarbons, and particulate matter.

  • Lifecycle GHG emissions can be up to 50–60% lower compared to petrol.

• Economic Benefits:

• Saves ₹40,000 crore annually in oil import bills at 20% blending.

• Boosts rural economy via purchase of surplus sugarcane, maize, damaged grains.

• Feedstock Dependence: Heavy reliance on sugarcane raises water-use concerns.

• Price & Supply Stability: Fluctuations in agricultural output affect ethanol supply.

• Technology Upgradation: Vehicles must be optimised for E20 and higher blends to avoid corrosion or reduced efficiency.

• Food vs Fuel Debate: Diversion of foodgrains in drought years could cause price spikes.

• Brazil: Over 85% of new cars are flex-fuel compatible; ethanol blending >27%.

• US: E10 and E15 blends are common; incentivised through Renewable Fuel Standard (RFS).

• Thailand & Philippines: Actively pursuing E20–E85 blends.