As India moves towards a low-carbon economy, ensuring energy security is essential for its growth. One of the key strategies driving this transition is ethanol blending with petrol, which strengthens energy security, empowers farmers, and reduces vehicular emissions. Given that India, with 17.78% of the global population, primarily consumes fossil fuel-based energy, the shift to renewable sources like biofuels is crucial.
In line with the nation’s goal of becoming a ‘Viksit Bharat’, the Indian Government has committed to net-zero emissions by 2070. This includes a 45% reduction in carbon intensity and sourcing 50% of energy from renewable power sources by 2030. Biofuels, particularly ethanol, play a significant role in this shift. The National Biofuel Policy, Ethanol Blended Petrol (EBP) Programme, SATAT (Sustainable Alternative Towards Affordable Transportation), and GOBARdhan (Galvanizing Organic Bio-Agro Resources Dhan) initiatives are part of a comprehensive framework to promote the production of such biofuels.
Waste to Wealth: Transforming India’s Biofuel Economy
India’s biofuel economy demonstrates how agricultural waste can be converted into valuable energy sources, boosting both sustainable development and economic growth. By using by-products from agriculture and industry, the country has built a strong “waste to wealth” system that boosts biofuel production, reduces pollution, and provides farmers with extra income.
For example, molasses from sugar production is used in ethanol manufacturing, and bagasse, the fibrous sugarcane residue, powers cogeneration plants. These innovations reduce the reliance on fossil fuels and minimize waste.
In ESY 2023-24, the sugar sector has contributed 231.08 crore liters of ethanol, or 43.87% of India’s total production as of August 31, 2024, highlighting the effective transformation of waste into biofuel and advancing ethanol blending goals.
Economic Impact and Rural Transformation
Ethanol production has created new revenue streams, reduced fossil fuel imports, and boosted rural economic growth. The expansion of ethanol infrastructure has also created employment opportunities, particularly in rural areas, where farmers benefit from the increased demand for feedstocks like sugarcane.
Ethanol production offers farmers assured markets and relatively stable prices, insulating them from traditional market volatility. The focus on Compressed Biogas (CBG) production also supports rural development by providing farmers with additional revenue streams while contributing to cleaner energy production. Moreover, by-products from ethanol production, such as potash-rich ash and bio-compost, improve crop yields and reduce input costs, fostering sustainable farming practices that enhance rural economies and contribute to poverty reduction.
The Government’s push for 20% ethanol blending by 2025-26 is expected to further stimulate the economy. The push for flex-fuel vehicles (FFVs) is expected to increase demand for ethanol, leading to the expansion of production capacities and investments in related industries. Advancements in second generation (2G) and third generation (3G) biofuels, using non-food feedstocks like agricultural residues and algae, will reduce competition between food and fuel, ensuring long-term sustainability.
Ethanol Production Revolutionizing Agriculture Industry
The ethanol blending policy has revolutionized India’s agriculture industry. By promoting ethanol production from sugarcane juice, molasses, maize and rice etc, the agriculture industry has found a profitable mode to increase profitability. Ethanol blending has also contributed to energy security and environmental sustainability, increasing the blend percentage from 1.53% in 2014 to 13.80% with approximately 585.2 crore litres of ethanol blended with petrol as of September 31, 2024. As a result, over the past decade, India saved ₹1,06,072 crore in foreign exchange, paid ₹90,059 crore to farmers, substituted 181 Lakh MT of crude oil and lowered 544 Lakh MT of CO2 emissions. Furthermore, the program has had a considerable economic impact, with OMCs disbursing ₹1,45,930 crore to distillers and ₹87,558 crore to farmers.
The Government has also incentivized ethanol production from multiple feedstocks like maize and rice, these include incentive of Rs. 9.72 per litre for ethanol derived 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 boosted maize’s contribution to ethanol production, which has risen to 36% in the 2023-24 Ethanol Supply Year (ESY) from a mere 0% in 2021-22. Additionally, the government has resumed the supply of FCI rice to ethanol distilleries, allowing for the purchase of up to 23 lakh tonnes through e-auctions from August to October 2024. Starting from November 2024, the supply of ethanol from sugarcane juice and syrup to distilleries is likely to commence, marking the start of the 2024-25 Ethanol Supply Year.
Triveni Engineering & Industries Limited: Leading the Charge
Companies such as Triveni Engineering & Industries Limited (TEIL) are vital contributors to India’s energy production in line with Government initiatives. TEIL has positioned itself as a key partner in the nation’s efforts to achieve self-sufficiency by focusing on sustainable energy solutions across sectors like ethanol.
TEIL has state-of-the-art distilleries spread across Muzaffarnagar (MZN) – two facilities with an aggregate of 260 KLPD capacity, a 200 KLPD facility at Sabitgarh (SBT), a 200 KLPD facility at Milak Narayanpur (MNP) in Uttar Pradesh, and a recently commissioned 200 KLPD facility at Rani Nangal (RNG). MZN houses two facilities, with the newer one being a grain-based distillery. The first 200 KLPD distillery at MZN boasts of flexible product manufacturing capability – Ethanol, Extra Neutral Alcohol (ENA), Rectified Spirit (RS) and Denatured Spirit (SDS) from molasses. The second 60 KLPD grain-based facility at MZN produces both Ethanol and ENA. Dried Distillers Grain with Solubles (DDGS), a by-product produced in grain plants, is sold to premium institutions and has been well accepted in the market.
TEIL also manufactures Indian Made Indian Liquor (IMIL) at this complex, to effectively use molasses that are reserved to be sold to country liquor units at a price much lower than the market price, and to facilitate forward integration of its distillery operations. SBT distillery produces high quality ethanol from molasses, while the distillery at MNP is a multi-feed stock plant equipped with the ability to use molasses and sugarcane juice/syrup, as well as grains to produce high-quality ethanol. At the time of its commissioning, the distillery at MNP was among the largest new multi-feed distilleries set up in India. The newly commissioned facility at RNG is also a multi-feedstock plant, having the ability to use molasses and sugarcane juice/syrup, as well as grains to produce high-quality ethanol.
TEIL has also enhanced the sugarcane crushing capacity from 61000 TCD to 63000 TCD for Sugar Season 2024-25, underscoring its commitment to supporting the industry and contributing to India’s ethanol goals.
Conclusion
India’s ethanol industry is set for unprecedented growth, with the Government advancing its 20% blending target to 2025-26. Ethanol’s potential as a versatile feedstock extends to creating cleaner fuels, such as Sustainable Aviation Fuel (SAF), and contributes significantly to environmental sustainability. With the right Government support and industry efforts, India can easily go beyond E20 and aim for higher blending goals like E85 and E100, bringing economic prosperity, environmental benefits, and rural rejuvenation.
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