ETHANOL BLENDING: ECONOMY

ETHANOL BLENDING: ECONOMY

NEWS: Need govt policy to make bioethanol fuels price more affordable for wider adoption in India

 

WHAT’S IN THE NEWS?

India's Ethanol Blending Program aims to reduce fossil fuel dependency, ensure energy security, and address environmental concerns by increasing ethanol blending in petrol, with a target of 20% by 2025-26. However, challenges such as pricing, infrastructure, and feedstock availability remain key obstacles.

 

Context and Importance

  • India’s Carbon Neutrality Goal: Honda Motor Co. highlights India’s potential to achieve carbon neutrality but stresses the need for affordable bioethanol fuel pricing.
  • Significance of Ethanol Blending: Reduces reliance on imported fossil fuels, improves air quality, and promotes rural economy by supporting farmers.

 

Suggestions for Effective Implementation

  1. Fuel Pricing Mechanism:
    • Government policies should make bioethanol fuel more affordable for economic viability.
    • Consider reducing taxes on ethanol.
  1. Manufacturers’ Role:
    • Improve fuel efficiency in vehicles.
    • Ensure compatibility with higher ethanol blends.
  1. Economic Viability:
    • Keep the fuel cost per kilometer equal to or lower than gasoline vehicles.

 

Ethanol and Its Applications

  • Production: Made from sugarcane, maize, and wheat (high-starch crops), primarily using fermentation.
  • Applications:
  • Fuel Blending: Alternative fuel source mixed with gasoline (E10, E15, E85).
  • Industrial Use: Solvent in organic compound synthesis.
  • Medical Use: As an antiseptic and disinfectant.

India’s Ethanol Blending Program (EBP)

  1. Launched in 2003: Promotes alternative, environmentally friendly fuels and reduces oil imports.
  2. Objectives:
    • Energy security by reducing crude oil dependency.
    • Cleaner environment through lower greenhouse gas emissions.
    • Support for farmers with increased demand for ethanol crops.
  1. Key Components:
    • Blending Targets: Achieve 20% ethanol blending by 2025-26.
    • Infrastructure Development: Investment in production facilities, storage, and distribution.

 

Achievements

  • Achieved 15% ethanol blending by 2024.
  • Significant reduction in crude oil imports and greenhouse gas emissions.

 

Challenges

  1. Infrastructure Development: High costs and complexity in scaling ethanol production and distribution.
  2. Feedstock Availability: Dependence on agriculture, vulnerable to climatic and market fluctuations.
  3. Consumer Awareness: Ensuring public acceptance and vehicle compatibility with higher ethanol blends.

 

Conclusion

India’s Ethanol Blending Program is pivotal for sustainable energy, economic independence, and environmental protection but requires holistic measures to overcome challenges.

 

Source: https://economictimes.indiatimes.com/industry/renewables/need-govt-policy-to-make-bioethanol-fuels-price-more-affordable-for-wider-adoption-in-india-honda/articleshow/117427366.cms?from=mdr