Ethanol can Fuel Sustainable Change

India has emerged as one of the fastest-growing consumers of biofuels globally, making significant strides in increasing ethanol blending over the years. Ethanol, a vital biofuel, plays a pivotal role in reducing India's dependence on fossil fuels while curbing carbon emissions and air pollution. The country's ethanol blending programme witnessed substantial growth, with the blending rate rising from a mere 1.53 percent in 2013-14 to an impressive 10.17 percent by 2022. Having achieved its 10 percent ethanol blending target, also known as E10, five months ahead of schedule in June 2022, India now sets its sights on achieving a 20 percent blend, or E20, by the end of 2025. 

This increase is attributed to various policy initiatives and amendments, such as the National Policy on Biofuels (NPB) 2018, which set targets for ethanol blending like achieving 10 percent ethanol blending or E10, by 2021-22 and advancing the target to E20 by 2025-26. The introduction of the Pradhan Mantri JI-VAN Yojana in March 2019 further supported this growth by providing financial support for integrated bio-ethanol plants and announcing measures to fix ethanol prices based on raw material costs. 

India is also a champion of ethanol adoption, and to further this goal, it initiated the launch of the Global Biofuel Alliance at the G20 Leaders’ Summit held in September 2023 in New Delhi. This alliance is an ambitious initiative aimed at fostering international collaboration to accelerate the development and adoption of biofuels worldwide. This move marks a significant step towards accelerating the adoption of cleaner, greener fuels globally, thereby supporting decarbonisation goals. 

However, to meet its ethanol requirements for achieving E20, India will need substantial quantities of ethanol. According to a report by Arcus Policy Research, by 2026, India will need an estimated 13.5 billion litres of ethanol, with 10.16 billion litres for fuel blending alone. This demand highlights the importance of enhancing ethanol production capacities, feedstock availability, and distillation capabilities to ensure the country's energy security and reduce its reliance on traditional fossil fuels. 

At the recent U.S.-India Biofuels Summit 2024, held in New Delhi on 23 April 2024, increasing production capacities was one of the key points of discussion. At the summit, there was emphasis on the need for diversifying feedstocks for ethanol production. While India's ethanol production has heavily relied on sugarcane, crops such as maize emerged as an alternative feedstock due to its advantages, such as requiring less water than other crops, making it a more resource-efficient option. Maize can be grown in all three seasons, with post-rainy season corn being particularly well-suited for ethanol production. Additionally, utilising agricultural, forestry, and industrial waste for ethanol production was a key topic for discussion, given the urgent need for waste management in India. Maximising ethanol production while minimising the environmental footprint is crucial, and byproducts from bioprocessing can help in supporting a circular economy model for increased sustainability. 

While this may reignite the long-standing 'food vs. fuel' debate, it is important to consider India's growing energy needs. Hence, we need to approach this as a 'food and fuel' conversation rather than a 'food or fuel' debate. Biofuels currently account for only 3.5 percent of transportation fuel, which leaves ample room for growth to further reduce emissions from mobility. 

As the world looks to new solutions for decarbonisation, Sustainable Aviation Fuel, or SAF, has achieved global support as a non-fossil-derived fuel. The alcohol-to-jet or ATJ, technology relies on abundantly available and low-carbon ethanol as a raw material to generate SAF. To successfully meet local and global SAF blending targets, India needs to develop a robust supply chain and ensure consistent, year-round availability of ethanol. 

Ethanol is also seeing adoption as a clean cooking fuel globally and can meaningfully contribute to climate goals in India. Already commercially available in Kenya, Indian Oil Marketing Companies and commercial entities are exploring the best way to introduce ethanol cookstoves and dispensing mechanisms as an alternative fuel to biomass or LPG. As India progresses in clean energy usage, even a small percentage of households transitioning to clean cooking would significantly impact the environment. 

Biofuels also bring up immense potential for India’s close collaboration with other countries around the areas of energy security and transition to cleaner fuels. For instance, India can draw on the best practices from the United States, which has extensive experience in improving the efficiency and sustainability of its biofuels industry. 

India's commitment to increasing ethanol blending and adoption is a significant step towards a more sustainable and eco-friendly future. By leveraging technological advancements, diversifying feedstocks, and fostering international collaborations, India can unlock the full potential of ethanol as a cleaner fuel source. This transition not only contributes to reducing greenhouse gas emissions and promoting energy security but also presents opportunities for economic growth, job creation, and sustainable development. As India continues to lead the way in biofuel adoption, it sets an example for other nations to follow, paving the way for a greener and more sustainable global energy landscape. 

(Tushar Gandhi is the founder of Gateway Consulting, a research and public policy firm.)