How ethanol-blended petrol can shield India from global oil shocks
What's the story
India's ethanol-blended petrol program is emerging as a strategic defense against rising oil prices and geopolitical tensions in West Asia. The initiative, which was once criticized for lower mileage and performance, is now seen as a key factor in shielding India's mobility sector from global oil shocks. Vijendra Singh, President of the All India Distillers's Association (AIDA), stressed that biofuels are an important part of India's long-term energy transition strategy.
Energy diversification
AIDA president calls for comprehensive approach to energy transition
Singh emphasized the need for a comprehensive approach to diversify the energy mix by increasing the share of domestically produced renewable fuels like ethanol. He said, "Greater adoption of ethanol in transport sector will reduce dependence on imported hydrocarbons and create a more balanced energy system." This strategy could improve India's energy security and lessen its vulnerability to global supply disruptions and price volatility.
Ecosystem expansion
Transitioning to multi-fuel bioenergy ecosystem critical for energy security
Deepak Ballani, Director General of ISMA, echoed Singh's sentiments and stressed the need for a wider biofuel ecosystem. He said, "A comprehensive biofuel ecosystem combining ethanol, biogas, biodiesel and sustainable aviation fuels will help India reduce import dependence and protect the economy from global energy shocks." Ballani also suggested that India's energy security strategy should gradually transition to a multi-fuel bioenergy ecosystem beyond just transportation.
Growth
Ethanol blending in petrol has increased sharply since 2014
India's installed ethanol production capacity currently stands at around 20 billion liters across various feedstocks. Of this, sugar-based feedstock contributes more than nine billion liters. Ethanol blending in petrol has increased sharply from about 1-2% in 2014 to almost 20% today, reflecting strong policy support and industry investment. However, current utilization levels remain relatively low at around 25-30% of the installed capacity.
Production diversification
Diversification of feedstock is crucial for sustainable ethanol supply
India has already expanded its ethanol production beyond molasses to sugarcane juice, B-heavy molasses, maize, surplus rice and damaged food grains. This diversification reduces dependence on a single crop and stabilizes ethanol supply. However, the key challenge lies in ensuring efficient procurement distribution, and utilization of ethanol across the fuel supply chain.