This has put the spotlight on India’s own push for ethanol as an alternative to fossil fuel to power automobiles. But it also shines light on a significant challenge to these efforts — the predicted disparity between the demand and supply of domestically-produced ethanol.

 

 

The country currently uses E10 automobile fuel — consisting of 10 percent ethanol and 90 percent petrol — to power vehicles. In an attempt to bring down carbon emissions, the central government has advanced the target of achieving 20 percent ethanol blending in petrol by 5 years from 2030 to 2025. 

 

But India’s low ethanol production and competing claims over it from other industries could pose a significant challenge to achieving this target. Currently, the country’s ethanol production is estimated to stand at 5.42 billion litres annually for about 12 percent blending. However, to achieve its 20 percent blending target, India is estimated to require about 10.16 billion litres annually — nearly twice the current production — by 2025-26. 

 

According to experts, India will need to ramp up its production significantly to meet its petrol blending target — Ashim Sharma, a senior partner and group head of business performance improvement at research firm NRI (Nomura Research Institute) Consulting & Solutions, told ThePrint that India’s ethanol production capacity would have to grow to 15 billion litres to achieve the target by November 2026. 

 

This is particularly significant given India’s rising demand for petrol — NITI Aayog, the government’s apex advisory body on public policy, projects the country’s petrol demand to be 50.8 billion litres by 2025-26.  

 

Here’s a look at India’s current ethanol production levels and what needs to be done to increase it to meet targets.