Ethanol Fuel Future In India 2023

Ethanol Fuel Future In India 2023: Our country is experiencing a rise in energy demand as a result of the expanding economy, the growing population, urbanization, evolving lifestyles, and the increasing spending power of people. In the road transportation sector, 98% of the fuel requirements are met by fossil fuels, while the remaining 2% are met by biofuels.

The National Policy on Biofuels 2018 provides an indication of the target of 20% ethanol blend under the Ethanol Blended Petrol (EBP) Program by the year 2025, based on the current forecasts.

An economy that has been growing so rapidly, such as India, needs to make sure that it is energy secure and transitions into a low carbon economy that is thriving. India can enhance its energy security by blending locally produced ethanol with petrol, thereby enabling local companies and farmers to participate in the energy economy and reducing carbon footprints associated with vehicles.

There is no doubt that ethanol blending will reduce carbon dioxide emissions, but the inefficient use of land and water for ethanol extraction and the threat of food insecurity remain concerns.


Ethanol production in india

Ethanol Fuel Future In India 2023

Ethanol Fuel Future In India 2023
Ethanol Fuel Future In India 2023

To reduce the reliance on imported crude oil, the government is planning on producing more ethanol-based petrol. The government of India is striving to promote the development of ethanol-based petrol by incentivizing sugarcane-derived ethanol. However, concerns remain about the water-consuming nature of sugarcane and the fairness of the farmer’s remuneration system.

There was an announcement that the Center, as part of its Ethanol Blending Program, approved a higher price for ethanol that is made from different sugarcane-based raw materials on November 2 as part of the Ethanol Blending Programme. According to the Centre, this was done for the ethanol supply year spanning December 1 to October 31, 2023, which coincides with the current season of sugar production. A press release from the Centre noted that the higher price of sugarcane ethanol for oil marketing companies will benefit distilleries and “help farmers receive a higher level of payment sooner.” According to the central government’s Cabinet committee on economic affairs, this price increase has been approved.

Currently, India is working on reducing its dependence on crude oil imported from abroad, and ethanol-blended petrol is a part of the plan. Furthermore, ethanol, as a biofuel, is a cleaner alternative to fossil fuels. Additionally, since it is made from sugars and starches which are commonly found in agriculture byproducts, it helps to provide an additional use for these products and boosts farmers’ income.

Ethanol Fuel Future In India 2023- Credit: Technology for Wildlife Foundation

According to the 2018 National Biofuel Policy, there should be an increase in the production of ethanol from sugar molasses, sugarcane juice, sugar beet, sweet sorghum, sugar-containing material, and starch-containing material, which are unfit for human consumption, as well as damaged food grains such as wheat, broken rice, rotten potatoes. At present, India is aiming to blend 10% of its fuels with ethanol, which has already been produced in excess of 450 crores (4.5 billion liters). By the year 2025, it aims to reach a percentage of 20% of ethanol consumption, for which it hopes to produce 1,000 crore liters of ethanol.

Latest News on ethanol blending in India

Ethanol Fuel Future In India 2023
Latest News on ethanol blending in India
Latest News on ethanol blending in India

There will be a 20% ethanol blend of petrol being supplied at select petrol pumps beginning in April 2023, and the supply will be ramped up thereafter as the government attempts to cut its dependence on oil imports and address environmental concerns. According to Hardeep Puri, by the year 2025, a fifth of petrol will be ethanol-based. “E20 petrol, which is petrol mixed with ethanol in 20 percent, will be available in some quantities from April 2023 and the rest of it will be available by the year 2025,” he said. India has exceeded its target of supplying petrol diluted with 10 percent ethanol (10 percent ethanol, 90 percent petrol) in June of this year by achieving that target ahead of schedule. The company has also accelerated its target of making petrol with 20 percent ethanol by five years to 2025.


What is the future of ethanol in India?

By the end of 2025, ethanol blending will reach 25 percent, he stated. Singla expressed confidence that many distilleries will be built in the country, saying, “We will have more than 1,000 crore liters of capacity by the end of this year. By 2023, we will have 1,250 crore liters or more.”

Will ethanol replace petrol in India?

The Oil Minister, Hardeep Puri, said that a fifth of petrol in 2025 would be made up of ethanol. He said ‘E20 petrol (petrol blended with 20 percent ethanol) will become available in some quantities by April 2023, and the rest will be added by 2025.’

Will ethanol replace petrol in India?

“E20 petrol is petrol blended with twenty per cent ethanol, which is expected to be available from April 2023 in some quantities and will make up a fifth of petrol sold by 2025,” said Oil Minister Hardeep Puri. “E20 petrol will be available in some quantities from April 2023 and the rest by 2025,” he said.

What is the ethanol blending percentage target in India by 2025?

20 per cent ethanol
By the end of this year, India is expected to meet its target of supplying petrol containing at least 10% ethanol 10 years ahead of schedule. This means that the target of supplying petrol containing at least 20% ethanol will be achieved five years earlier than planned in 2025.

Does ethanol have future?

There is a target for India to reach 20% of ethanol in our cars by 2030, but that deadline has been pushed back to 2025 due to the NASI’s announcement of its ethanol roadmap for 2030. Ethanol currently accounts for 10% of petrol in our cars.

Is it good to invest in ethanol stocks?

Buying stocks in this sector is ideal when the companies with strong fundamentals trade at attractive valuations and have strong fundamentals. As ethanol has been blending with petrol in the country, the government has been pushing for ethanol to be blended with petrol in the country. Due to this, the sector has gained attention and seems poised to thrive in the future.

Who are the buyers of ethanol in India?


Can cars run on 100% ethanol?

A pure ethanol fuel – 100% ethanol or E100 – could theoretically be used to power cars, but it is not usually used for a variety of reasons. The main reason is that ethanol is hard to start cold, as it doesn’t burn as quickly as gasoline. If you want to use pure ethanol as a fuel during the winter months, it would be useless. (It has a higher octane, if you’re interested.)

What is the price of 1 litre ethanol in India?

Prime Minister Narendra Modi and the Cabinet Committee on Economic Affairs (CCEA), headed by the Prime Minister of India, Narendra Modi, have increased the price of the ethanol derived from sugarcane juice and that will be available to the public starting December 2022 from 63.45 per liter at present.

What is the price of 1 litre ethanol in India?

1L Bottle: Rs 50
50L Bottle: Rs 2,400

What is the cost of 1 litre of ethanol?

In the year 2022-23 (October to September), a new rate of Rs 305 per quintal will apply (to recover a basic rate of 10%), which is up from Rs 290 in the year 2021-22.

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