Ethanol blending percentage surges from 1.53 pc in 2014 to 15 pc in 2024: Hardeep S Puri

New Delhi [India], September 2 : At the opening session of the India Bio-Energy & Tech Expo 2024 (IBETE), Hardeep Singh Puri, the Minister for Petroleum and Natural Gas, mentioned that the ethanol blending percentage has risen from 1.53 per cent in 2014 to 15 per cent in 2024.
According to the Ministry of Petrolium and Natural Gas, the government has set a goal of reaching 20 per cent blending by 2025 and is making strides towards this target. Over the past decade, this initiative has yielded substantial benefits, such as saving Rs 99,014 crore in foreign exchange, cutting CO2 emissions by 519 lakh metric tons, and substituting 173 lakh metric tonnes of crude oil.
The program has also made a significant economic impact, with Oil Marketing Companies paying out Rs 1,45,930 crore to distillers and Rs 87,558 crore to farmers.
Minister Puri highlighted that bioenergy is becoming an increasingly vital alternative to fossil fuels, offering both environmental benefits and economic prospects, especially in rural areas.
In his speech, Minister Puri detailed the Indian government's strategic efforts to promote bioenergy, stressing its importance in reducing dependence on imports, conserving foreign exchange, and fostering a circular economy.
The government's strategy covers a range of areas, including ethanol and biodiesel blending, Compressed Biogas (CBG), Sustainable Aviation Fuels, biomass utilisation (such as pellets and briquettes), Biohydrogen, and waste-to-energy solutions.
Minister Puri also highlighted the widespread availability of E20 fuel, which is now offered at more than 15,600 retail outlets across the country. He praised the Pradhan Mantri JI-VAN Yojana for its crucial role in financing advanced biofuel projects, essential for building a sustainable ethanol production system.
The Petroleum Minister outlined several key government initiatives aimed at boosting ethanol production and minimising environmental impact.
Notably, two second-generation (2G) refineries have been set up in Panipat and Numaligarh to convert agricultural residues like Parali and bamboo into ethanol. These refineries are crucial for reducing pollution, enhancing energy security, and transforming farmers into active contributors to the energy sector.
To support the ethanol industry, Minister Puri noted that the government has introduced various incentives for ethanol production. These include Rs 9.72 per litre for ethanol from maize, Rs 8.46 per litre for ethanol from damaged rice, and Rs 6.87 per litre for ethanol from C-heavy molasses.
These incentives have significantly increased the contribution of maize to ethanol production, which has risen to 36 per cent in the 2023-24 Ethanol Supply Year (ESY) from 0 per cent in 2021-22.
Additionally, the government has resumed supplying FCI rice to ethanol distilleries, allowing for the purchase of up to 23 lakh tonnes through e-auctions from August to October 2024. From November 2024, the supply of sugarcane juice and syrup to distilleries will also begin, marking the start of the 2024-25 Ethanol Supply Year.
Puri emphasized the need to diversify feedstocks for ethanol production to ensure security and avoid over-reliance on a single source. The government's policy of providing stable and profitable prices for ethanol has effectively reduced pending arrears for sugarcane farmers, decreased crude oil import dependence, and contributed to foreign exchange savings while benefiting the environment.
A major milestone in ethanol fuel expansion was the successful launch of E100 fuel at over 400 retail outlets nationwide. Minister Puri urged Nitin Gadkari, Minister of Road Transport & Highways, to encourage automobile manufacturers to produce vehicles compatible with E100 fuel.
Puri said, "E100 Fuel Launched at Over 400 Retail Outlets Nationwide."
He addressed common misconceptions about ethanol blending, clarifying that blending ethanol with petrol not only enhances engine performance by increasing the octane number but also improves engine efficiency. Contrary to some concerns, ethanol helps prevent pre-ignition knock and improves overall engine operation.
Drawing from global practices, Puri cited Brazil's successful use of high ethanol blends--up to 60-70 per cent in vehicles--demonstrating the feasibility of high ethanol content. He assured that India is committed to scaling up E20 production and supporting the transition with measures to facilitate the use of transition fuels in older vehicles.
Puri also praised the automobile industry for its proactive approach, noting that manufacturers are not only producing new E20-compliant vehicles but are also developing retrofit kits for older models. These kits, which can be installed during regular servicing, represent a significant advancement in accommodating older vehicles and promoting biofuel adoption.
Puri underscored the essential role of biofuels in reducing fossil fuel dependence and emissions, paving the way for a cleaner and more sustainable future.
He also discussed the Global Biofuels Alliance (GBA), established during India's G20 presidency, which serves as a collaborative platform for sharing knowledge, advancing technology, and developing policies to tap into the USD 500 billion biofuels opportunity and accelerate global adoption through technology transfer.
The India Bio-Energy & Tech Expo 2024, organized by the Indian Federation of Green Energy (IFGE) and MMACTIV Sci-Tech Communications Ltd., is being held at Yashobhoomi, Dwarka, from September 2nd to 4th, 2024.
Gadkari and Puri inaugurated the event, which focuses on driving growth in India's bioenergy sector, highlighting key government policies such as the National Policy on Biofuels 2018 and the SATAT Scheme on Compressed Bio Gas (CBG), as well as initiatives like specific blending targets for ethanol, CBG, and SAF; the Repurpose Used Cooking Oil (RUCO) initiative; Galvanizing Organic Bio-Agro Resources Dhan (GOBARdhan); and the Samarth Mission.