The government, which aims to achieve 20% ethanol blending in petrol by next year, is exploring the possibility of extending ethanol blending beyond this level. “Discussions are already underway within the government about creating a roadmap for ethanol blending beyond 20% after 2025,” Petroleum Minister Hardeep Singh Puri stated at the CII Bioenergy Summit on Monday.
Biofuels, especially ethanol blending, play a critical role in India’s efforts to reach carbon neutrality by 2070, significantly cutting emissions from the transportation and aviation sectors. Initially, the government aimed for 20% ethanol blending in petrol by 2030 but later accelerated the target to 2025-26.
Currently, ethanol blending stands at around 15%, a substantial increase from 1.5% in 2014. Though ethanol can affect certain rubber parts in vehicles due to its moisture-absorbing properties, the impact of a 20% blend is expected to be minimal.
Petrol-powered vehicles today can run on 10% ethanol without issue, and most new models are designed to accommodate 20% ethanol. The government is promoting ethanol blending to reduce reliance on imported fossil fuels and enhance energy security.
Increased ethanol consumption by oil companies also boosts income for sugarcane and maize farmers. “From 2014 to 2024, we saved ₹1.6 lakh crore in foreign exchange, cut CO2 emissions by 544 lakh metric tons, and substituted 181 lakh metric tons of crude oil. Oil companies paid ₹1.5 lakh crore to distilleries, while farmers received ₹90,059 crore,” Puri added. To ensure sufficient ethanol supply, the government has introduced initiatives like subsidies for distilleries and permission to use multiple feedstocks for ethanol production.
