India is making significant progress in ethanol blending with petrol and recently achieved the highest-ever ethanol blending of 18.2% in December 2024 during the ongoing Ethanol Supply Year (ESY) 2024-25. The country is also likely to touch 20% blending soon.
The industry is applauding the government for the achievement in the ethanol sector so far.
Tarun Sawhney, Vice Chairman & Managing Director of Triveni Engineering and Industries Ltd (TEIL) while speaking to ChiniMandi said, “The Government has played a pivotal role in advancing the Ethanol Blended Petrol (EBP) programme through progressive policies and initiatives. Recent measures, such as lifting the cap on ethanol production from sugarcane syrup and B-heavy molasses have helped achieve the highest-ever ethanol blending of 18.2% in petrol in December 2024. Additionally, the decision to reduce the reserve price of FCI rice under the Open Market Sale Scheme (OMSS) by ₹550 per quintal to ₹2,250 will also help inch closer to the 20% ethanol blending target.”
Stating how the ethanol programme has helped the industry and farmers, he said, “During the past decade, EBP Programme helped in expeditious payment of ~ ₹ 92,409 crore to the farmers as on September 30, 2024. The programme has also delivered significant benefits, including foreign exchange savings exceeding ₹1 lakh crore and net CO2 reductions of 557 Lakh Metric Tonnes (LMT). These achievements underline the programme’s dual impact—stimulating economic growth while promoting environmental conservation. It is also expected that 20% ethanol blending in petrol (E20) may likely result in payment of over ₹ 35,000 crore annually to the farmers.”
“As the country is close to achieving E20, the need is to get the entire ecosystem in place to be looking at beyond E20. It is imperative to plan investments in storage infrastructure, multimodal transportation, and blending facilities at a faster pace in order to overcome logistical bottlenecks and ensure smooth supply chain operations. Looking ahead to the post-E20 era, the adoption of advanced technologies, such as 2G ethanol production from agricultural residues, is essential for reducing waste and ensuring that food crops are not displaced. Promoting Flex-Fuel Vehicles (FFVs) and Hybrid Electric Vehicles (HEVs) capable of higher ethanol blends will further support a transition to greener transportation and enhanced energy efficiency. Additionally, the Government should focus on targeting subsidies to create an additional ethanol production capacity. These investments will be critical for achieving the long-term vision of sustainable energy growth, ” TEIL VC and MD further added.
The government has set a target of 20% ethanol blending by ESY 2025-26 and is confident of achieving this goal. However, to meet this target, approximately 1,016 crore liters of ethanol will be required, totaling 1,350 crore liters when accounting for other uses. India has also witnessed massive investment in the sector and expansion of infrastructure.
“At Triveni Engineering & Industries Ltd. (TEIL), we are proud to contribute to India’s E20 aspirations through our robust ethanol production infrastructure. Our distilleries are equipped to process various feedstocks, enhancing resilience and minimizing dependency risks. TEIL operates state-of-the-art distilleries spread across Muzaffarnagar – 2 facilities, Sabitgarh, Milak Narayanpur, Rani Nangal and Shamli in Uttar Pradesh. With a total capacity of 860 KLPD, we remain committed to supporting India’s ethanol ambitions while driving economic progress, environmental stewardship, and rural empowerment”. he concluded.
Recently, Hardeep Singh Puri, while speaking at the 3rd International Symposium for Thriving Co-Energy in Mobility, stated that India is likely to achieve the 20% ethanol blending probably next month, ahead of original target of ESY 2025-26.
The push for ethanol blending is part of the government’s effort to reduce reliance on imported fuel.
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