India’s Ethanol Roadmap
The central government has released an expert committee report on the Roadmap for Ethanol
Blending in India by 2025. The roadmap proposes a gradual rollout of ethanol-blended fuel to
achieve E10 fuel supply by April 2022 and phased rollout of E20 from April 2023 to April 2025. In this
report, The Ministry of Petroleum & Natural Gas (MoP&NG) had instituted an Expert Group to study
the issues such as pricing of ethanol, matching pace of the automobile industry to manufacture
vehicles with new engines with the supply of ethanol, pricing of such vehicles, fuel efficiency of
different engines etc.
About Ethanol:
Ethanol is a biofuel, that is, a fuel produced by processing organic matter. The auto fuels we
commonly use are mainly derived from the slow geological process of fossilisation, which is why they
are also known as fossil fuels. Ethanol in India is obtained primarily from sugarcane via a
fermentation process. Ethanol is high in oxygen content, which therefore allows an engine to more
thoroughly combust fuel.
Ethanol Blending Target set by Government of India:
The Government of India has advanced the target for 20% ethanol blending in petrol (also
called E20) to 2025 from 2030.
Currently, 8.5% of ethanol is blended with petrol in India.
Objectives of Ethanol Blending:
Energy Security:
o Increased use of ethanol can help reduce the oil import bill. India’s net import cost
stands at USD 551 billion in 2020-21.
o The E20 program can save the country USD 4 billion (Rs 30,000 crore) per annum.
Incentives for Farmers:
o The oil companies procure ethanol from farmers that benefits the sugarcane
farmers.
o Further, the government plans to encourage use of water-saving crops, such as
maize, to produce ethanol, and production of ethanol from non-food feedstock.
Impact on Emission:
o Use of ethanol-blended petrol decreases emissions such as carbon monoxide (CO),
hydrocarbons (HC) and nitrogen oxides (NOx).
o The unregulated carbonyl emissions, such as acetaldehyde emission were, however,
higher with E10 and E20 compared to normal petrol. However, these emissions were
relatively lower.
Impact on Environment due to Usage of E20 Fuel:
Vehicular emissions such as Carbon Monoxide (CO), Hydrocarbons (HC) and Oxides of Nitrogen
(NOx) are currently under regulation in India. Use of ethanol blended gasoline decreases these
emissions. A summary of emission benefits with E10 and E20 fuels compared to neat gasoline are
presented in following table:
Emissions Gasoline Two Wheeler Four Wheeler
E10 E20 E10 E20
Carbon
Monoxide
Baseline 20% lower 50% lower 20% lower 30% lower
Hydrocarbons Baseline 20% lower 20% lower 20% lower 20% lower
Oxides of
Nitrogen
Baseline No Significant
trend
10% higher No Significant
trend
Same
Higher reductions in Carbon Monoxide emissions were observed with E20 fuel – 50% lower in twowheelers and 30% lower in four-wheelers. Hydrocarbon emissions reduced by 20% with ethanol
blends compared to normal gasoline. Nitrous Oxide emissions did not show a significant trend as it
depended on the vehicle/engine type and engine operating conditions. The unregulated carbonyl
emissions, such as acetaldehyde emission were, however, higher with E10 and E20 compared to
normal gasoline, due to the presence of hydroxyl groups in ethanol. However, these emissions were
relatively minor (in few micrograms) compared to regulated emissions (which were in grams).
Evaporative emission test results with E20 fuel were similar to E0. Overall, ethanol blending can help
decrease emissions from both two-wheelers and four-wheelers.
Recommendations:
Notifying Ethanol Blending Roadmap: MoP&NG should immediately notify the plan for panIndia availability of E10 fuel by April, 2022 and its continued availability thereafter until 2025
for older vehicles, and launch of E20 in the country in phases from April, 2023 onwards so as
to make E20 available by April, 2025.
Augmenting Infrastructure for Oil Marketing Companies: OMCs will need to prepare for the
projected requirement of ethanol storage, handling, blending and dispensing infrastructure.
Expediting Regulatory Clearances: Currently, ethanol production plants/distilleries fall under
the “Red category” and require environmental clearance under the Air and Water Acts for
new and expansion projects.
o This often takes a long time leading to delays.
o While several steps have been taken to expedite Environment Clearances (EC) under
the Environment Protection Act there are few areas of concern which if addressed,
will facilitate early setting up of ethanol distillation capacities in the country.
Incentivising Ethanol Blended Vehicle: Globally, vehicles compliant with higher ethanol
blends are provided with tax benefits.
o A similar approach may be followed so that the cost increase due to E20 compatible
design may be absorbed to a certain extent, as is being done in some states for
promoting Electric Vehicles.
Pricing of Ethanol Blended Gasoline: For better acceptability of higher ethanol blends in the
country, retail price of such fuels should be lower than normal petrol to compensate for the
reduction in calorific value and incentivize switching to the blended fuel.
o Tax breaks on ethanol as a fuel may be considered by the government.
References:
- https://niti.gov.in/sites/default/files/2021-06/EthanolBlendingInIndia_compressed.pdf
- https://www.firstpost.com/india/explained-what-is-ethanol-blending-in-petrol-and-why-itcan-be-beneficial-for-india-9692861.html
- https://www.hindustantimes.com/india-news/ethanolpetrolblending-20-target-dateadvanced-to-2025-all-you-need-to-know-101622939404107.html
