Ethanol Blending in Petrol

Context: As more than 100 countries at COP28 in Dubai pledged the tripling of global renewable energy capacity by 2030, India faces a tightrope walk with regard to its ethanol blending target. While ethanol blended petrol (EBP) increased from 1.6% in 2013-14 to 11.8% in 2022-23, the 20% target by 2025 has run into trouble with low sugar stocks in 2022-23 and the impending shortfall in sugarcane production this year. 

Ethanol blending:

• Ethanol blending in petrol refers to the practice of mixing ethanol, a type of alcohol/biofuel, with petrol to create a blended fuel.
  • E10, is the most common blend, which consists of 10% ethanol and 90% petrol. 
  • E20, is a higher ethanol blend, which has 20% ethanol and 80% petrol. 
• Ethanol is naturally produced by the fermentation of sugars by yeasts or via petrochemical processes such as ethylene hydration.

Ethanol blending target:

• India launched its ethanol blending programme (EBP) in 2003. It is aimed at reducing the country’s dependence on crude oil imports, cutting carbon emissions and boosting farmers’ incomes.
• The National Policy of Biofuels 2018 provided indicative targets of 20% ethanol blending in petrol and 5% biodiesel blending in diesel by 2030. 
• Encouraged by the past 7 years performance under the Ethanol Blending Programme, the Government has advanced the targets of 20% ethanol blending in petrol from 2030 to Ethanol Supply Year (ESY) 2025-26.
  • In 2022, India’s blending programme achieved the significant milestone of 10 per cent ethanol blending in petrol.
• In India, biofuels are primarily associated with first-generation (1G) ethanol, which is sourced from food crops like sugarcane and foodgrains.

Benefits:

• Reduce dependence on non-renewable fossil fuels: Ethanol is often produced from renewable sources such as corn, sugarcane, or other biomass. Blending ethanol with petrol helps reduce dependence on non-renewable fossil fuels.
  • India's net import of petroleum was 185 million tonnes in 2020-21 costing USD 551 billion. 
• Reduced Greenhouse Gas Emissions: Ethanol contains oxygen, which can improve the combustion of fuel, leading to more complete burning and lower emissions of certain pollutants like Carbon dioxide and carbon monoxide. 
• Efficiency: Ethanol has a higher octane rating than petrol, which means it can improve the octane level of the blended fuel. Higher octane levels can contribute to better engine performance and efficiency. 
• Farmer’s income: Ethanol produced from farm residue will boost farmers' income and also minimise air pollution by reducing stubble burning. 

Challenges:

• Food security:
  • Lowering sugar stocks: 
    • Industry body Indian Sugar Mills Association (ISMA) has projected a 9 per cent fall in gross sugar production at 337 lakh tonnes for the 2023-24 marketing year starting (October-September). It has not estimated the diversion of sugar for ethanol production.
    • Cane growing districts in Maharashtra and Karnataka received as little as 56% of normal rainfall in 2023, as this year the monsoon was the weakest since 2018.
    • In what would be a major reversal after 2017, the growing pressures that could force India, which supplies 12% of globally traded sugar, to become a net importer from as early as the first half of 2025.
  • Grain-based ethanol: Government is looking at a major transition towards grains-based ethanol for meeting the target particularly by developing an organised maize-feed supply chain for ethanol. This risks food security as more area under the food grains can be diverted for growing food grains for ethanol production. 

• Environmental concerns:
  • Water-intensive agriculture: Growing sugar cane and using food grains for ethanol production have significant implications for groundwater depletion. 
  • Agriculture’s GHG Emissions: Diverting crops towards fuel production increases greenhouse gas (GHG) emissions from the agriculture sector, counteracting the goal of reducing emissions in the transport sector.
  • No reduction in NOX emissions: Ethanol lessens emissions such as carbon monoxide. However, there is no reduction in nitrous oxides which is one of the major environmental pollutants.
• Challenge of Scaling up: Balancing economies of scale with energy needs and costs for biomass collection and transport remains a challenge. 
• Storage: The ethanol production capacity in India has increased from 423 crore litres in 2019-20 to 947 crore litres in 2022-23. As in 2023, India might need an additional 8-10 billion litres of ethanol production capacity to achieve the 20% petrol-ethanol blending requirement.
• Ethanol Movement between states: The non-implementation of the amended provisions of the Industries (Development & Regulation) Act, 1951, by all states poses a significant challenge to ethanol blending in India due to restrictions on inter-state movement of ethanol. 

Way Forward:

• Sustainable Biofuels: Sustainable biofuels, produced from crop residues and other low-impact sources, have a lower water and GHG footprint. Global Biofuels Alliance initiative aims to develop these sustainable alternatives and promote ethanol use. 

• Invest in public infrastructure: Government needs more investment in public infrastructure and transportation facilities to facilitate their use.
• Alternative energy sources: For emissions reduction, alternative mechanisms should be adopted like- improved infrastructure for Electric Vehicles like charging infrastructure, low cost batteries, and additional renewable generation capacity, green hydrogen mission.