The Society of Indian Automobile Manufacturers (SIAM) and the US Grains Council (USGC) on Friday signed a memorandum of understanding (MoU) to support higher ethanol blending in India in fuel.
In June last year, India achieved the target of supplying 10% ethanol-blended petrol five months ahead of schedule, up from 0.67% blending in 2012. India plans to double the blend to 20% by 2025-26, for which an estimated 10.15 billion litres of ethanol will be required.
The MoU will facilitate the establishment of a framework for cooperation covering scientific, technical, and policy aspects of the production, blending, distribution, and marketing of ethanol in a sustainable and environmentally-friendly manner, USGC said in a statement.
This framework will help form national priorities, socio-economic development strategies, and goals. Under the MoU, the two organisations will work on key areas such as standards, regulations, and policy frameworks, blending and retailing, production and logistics, and automobile compatibility.
The MoU was signed during the Auto Expo 2023 in New Delhi by SIAM president Vinod Aggarwal and USGC chairman Josh Miller in the presence of petroleum and natural gas minister Hardeep Singh Puri and US acting deputy chief of mission Gloria Berbena.
SIAM is the apex body for the Indian automobile industry and USGC is a US-based not-for-profit organisation developing export markets for ethanol. The two sides will also work to create ethanol awareness, increase production capacity and efficiency and advocate for ethanol’s wide adoption, the statement said.
Aggarwal lauded USGC’s role in developing long-term partnerships with Indian stakeholders and creating opportunities. “The Council has had a presence in India for over 25 years and we look forward to working with the Council on the promotion and implementation of the government’s ethanol blending mandate,” he said.
Miller said USGC is exploring opportunities to support India to achieve its next target of 20% ethanol blending by 2025. “India is the second-largest importer of US ethanol for industrial purposes. This MoU reflects the excellent mutual relations between the countries and our collaborative efforts and shared priorities in this space,” he added.
USGC has undertaken several initiatives and conducted master classes on enhanced consumer education to clear misconceptions about ethanol-blended fuel.