Union Minister of Petroleum and Natural Gas, Hardeep Singh Puri, has called on automobile manufacturers to produce vehicles compatible with E100 fuel as part of a broader push to promote ethanol-blended fuels in India. Speaking at the India Bio Energy & Tech Expo, Puri highlighted the government’s ongoing collaboration with the automobile industry to advance the development of vehicles that can efficiently run on ethanol-based fuels.
“I would like to acknowledge the commendable efforts of the automobile industry, not only for manufacturing new vehicles that are compliant with E20 fuel but also for their dedication to developing retrofit kits for older vehicles,” Puri said. He further mentioned that E100 fuel has already been introduced at over 400 retail outlets nationwide, marking a significant milestone in the country’s transition toward cleaner energy sources.
The Indian government has been proactively encouraging the adoption of alternative fuels to reduce the country’s heavy reliance on crude oil imports. In line with this objective, the government has set an ambitious target of achieving 20 percent ethanol blending in petrol by the year 2025. “The government is making every effort to reach 20 percent ethanol blending in petrol,” Puri emphasized, underscoring the critical role of ethanol in enhancing energy security and fostering environmental sustainability.
Puri also stressed the importance of diversifying feedstocks for ethanol production to ensure a stable supply and avoid over-dependence on any single source. He noted that the government’s policy of offering stable and remunerative prices for ethanol has not only reduced pending arrears for sugarcane farmers but has also lessened the country’s dependence on crude oil imports, resulting in significant foreign exchange savings and environmental benefits.
To further incentivize ethanol production, the government has introduced several financial incentives. These include Rs 9.72 per liter for ethanol produced from maize, Rs 8.46 per liter for ethanol derived from damaged rice, and Rs 6.87 per liter for ethanol made from C-heavy molasses. These incentives have significantly increased maize’s contribution to ethanol production, which surged to 36 percent in the 2023-24 Ethanol Supply Year (ESY) from a negligible 0 percent in 2021-22.
Puri also announced that the government has resumed the supply of Food Corporation of India (FCI) rice to ethanol distilleries, allowing these facilities to purchase up to 23 lakh tonnes through e-auctions from August to October 2024. Furthermore, from November 2024, the supply of sugarcane juice and syrup to distilleries will begin, marking the commencement of the 2024-25 Ethanol Supply Year.
Highlighting the progress made in the ethanol blending initiative over the past decade, Puri revealed that the ethanol blending percentage in petrol has risen dramatically from 1.53 percent in 2014 to 15 percent in 2024. This initiative has not only saved the country Rs 99,014 crore in foreign exchange but has also led to a reduction of 519 lakh metric tons of CO2 emissions and substituted 173 lakh metric tons of crude oil. These achievements underscore the significant impact of ethanol blending on India’s energy landscape and environmental conservation efforts.
