Ethanol Blending

In News

• India recently achieved the target of blending 10 percent ethanol in petrol five months ahead of schedule.
  • This has resulted in less carbon emissions, more savings for the country and better income for farmers.

National Biofuel Policy

• It is aimed at reducing dependence on imports by encouraging fuel blending. 
• With bioethanol, biodiesel and bioCNG in focus, its key parts include 
  • Ethanol Blending Programme (EBP), 
  • Production of second generation ethanol (derived from forest and agricultural residues), 
  • Increasing capacity for production of fuel additives, R&D in feedstock, which is the starting material for ethanol production.
  • Financial incentives for achieving these goals.

• Ethanol Blending Petrol (EBP) programme:
  • The Centre promotes the Ethanol Blending Petrol (EBP) programme with the aim of enhancing energy security, reducing import dependency on fuel, saving foreign exchange, addressing environmental issues and giving a boost to agriculture.
• Policy Targets and achievements:
  • The National Biofuel Coordination Committee (NBCC), with the Union Minister for Petroleum and Natural Gas as its head, is the agency to coordinate this blending programme.
  •  In 2014 only 1.5 per cent ethanol was blended in petrol in India.
  • The ‘National Policy on Biofuels’ notified by the government in 2018 envisaged an indicative target of 20% ethanol blending in petrol by 2030.
  • Given the encouraging performance and various interventions made by the government since 2014, the 20% target was advanced to 2025-26.
  • The “Roadmap for Ethanol Blending in India 2020-25“, released in June 2021, mentioned an intermediate milestone of 10% blending by November, 2022.
  • However, due to the coordinated efforts of the public sector oil marketing companies (OMCs) the target of 10% blending under the programme has been achieved much ahead of the targeted timelines of November, 2022 wherein the public sector OMCs have attained an average 10% ethanol blending in petrol across the country.

Significance of Ethanol Blending for India

• Increased energy security: 
  • India imports more than 70 percent of its domestic crude requirement from abroad. The move will reduce its dependency on foreign crude significantly.
  • India will be more immune to geopolitics upheavals as seen recently in Russia-Ukraine conflict or middle-east turmoil.
• Eco-friendly: 
  • Use of blended ethanol lowers carbon emissions, resulting in better air quality.
• Judicious use of otherwise wasted crops: 
  • Huge quantity of crops see wastage in India every year. With the above amendment, the wasted crops would be diverted for ethanol production thus reducing wastage.
• Increased farmer income: 
  • Farmers will be able to realise better prices for their produce. The current policy of attaining 10 percent blending level has benefited the farmers significantly. The 20 percent level will further it.
• Increased self-reliance: 
  • New policy would allow more feedstock for producing biofuel and foster the development of indigenous technologies making India self-reliant to a considerable degree

• SDG targets:
  • Relatively low Emissions will help achieve SDG targets and mitigate climate change.

Challenges

• Increase in vehicle price levels:
  • The 10% target of blending did not require major changes to engines. However, a 20% blend would require changes driving up the prices of vehicles thereby hurting the customers and affecting the automobile sector which is still recovering from the pandemic.
• Land diverted for non-food purposes:
  • A greater percentage of blending would result in more land being diverted for crops that would be used for ethanol production threatening food security.
• Unsustainable crop rearing:
  • As of now, primarily water-intensive sugar cane is being used in ethanol production which is driving down the water table swiftly. It is also being subsidised by the government thus nudging more farmers to grow the crop.
  • The target would require 6 million tonnes of sugarcane and 16.5 million tonnes of grains per annum by 2025 for non-food purposes thus impacting food security.
• Technology sub-optimal to other green technology:
  • India should focus more on technologies that are sustainable in nature like EV vehicles and solar energy driven mass transport systems. 
  • This will save the precious R&D of the automobile sectors also who are focusing more on deployment of EV.

Way Ahead

• Shift Focus from 1G to next-generation Biofuels: It will counter the most genuine fear of loss of food security.
  • The 2018 National Policy on Biofuels prioritized 
    • grasses and algae; 
    • cellulosic material such as bagasse, farm and forestry residue; and, 
    • items like straw from rice, wheat and corn for ethanol production.
• Making Vehicle manufacturers future-ready: 
  • The industry and petrol pump should be made ready for next pushes like E85 and E100.
• India as a global leader:
  • India has a real opportunity here to become a global leader in sustainable biofuels policy if it chooses to refocus on ethanol made from wastes.
  • This would bring both strong climate and air quality benefits, since these wastes are currently often burned, contributing to smog.

Source: TH