India, in an attempt to reduce reliance on imported crude oil, initiated an ethanol blending programme in 2003. However, it took over a decade for substantial progress to occur, and it wasn’t until 2022 that the programme reached a significant milestone: 10% ethanol blending in petrol. The Indian government has set ambitious plans to double this figure by 2025, but this will require considerable investment and resource allocation.
- Ethanol producers in India provided around 430 crore litres of ethanol in 2022.
- There’s an anticipated increase in India’s ethanol demand to roughly 1100 crore litres by 2025 to meet the 20% blending target.
- The majority of India’s petrol demand (60%) comes from two-wheelers, with the remaining 40% predominantly from cars.
- Electric Vehicles, while an alternative, do not present a comprehensive solution to India’s mobility needs due to various trade, employment, and economic issues.
- Biofuels and flex-fuel vehicles, which can operate primarily on biofuels, may be a viable option.
- Union Minister Nitin Gadkari recently launched India’s first flex fuel vehicle.
India’s Ethanol Production Overview
- The majority of India’s ethanol supply for blending comes from first-generation production.
- This production uses the inherent sugars found in food crops, with sugarcane (84%) and grain (16%) being the primary sources.
- Second-generation (2G) techniques for ethanol production hold great potential, however, investment progress has been sluggish.
- Even Indian Oil’s advanced facility will only produce 3 crore liters of 2G ethanol.
- A total of 12 facilities are in the planning and construction phase, but they are not expected to meet the majority of the ethanol demand.
Evaluating Ethanol Production And Its Impact
- First-generation production is currently dominant in the sector.
- The interplay between food, energy, and water, known as the food-energy-water nexus, needs actionable strategies.
- Food crop production relies on subsidised energy like natural gas and electricity for water and fertilizer.
- Assured procurement through ethanol offers an additional revenue stream for farmers.
- However, climate change impacts like fluctuating rainfall and crop yields could trigger supply shocks.
- A thorough review of these tradeoffs is imperative for India.
- A well-defined research and development approach for second-generation (2G) technologies can bolster the ethanol production scale-up process.
Source: Changing How We Move (Article), Indian Express, September 22, 2023