Context: India needs clear research and development plan to scale up ethanol production
Why in news: Recently Global Biofuel Alliance was launched to promote ethanol-based economy.
Background:
Why India needs an Ethanol based economy:
- International oil prices are rising and nearing $100 per barrel, increasing India’s import dependence on crude oil.
- India’s economy has the third-largest crude and product demand globally, with significant room for consumption growth.
- Estimates suggest that up to 20% of India’s total primary energy supply comes from biomass, primarily used by households.
- The Global Biofuel Alliance under India’s G20 presidency aims to convert biomass into clean bio-energy, enhance energy security, and maximize public spending.
- NITI Aayog’s projection on India’s growing petrol demand:
- Nearly 60% of India’s petrol demand comes from two-wheelers, while 40% comes from four-wheelers.
- The demand for four-wheelers is expected to increase gradually, driven by aspirations to own them.
- A NITI Aayog report projects over a 45% growth in petrol demand by 2030 compared to 2021.
- Biofuels and flex-fuel vehicles, which can run on biofuels, may be considered as alternatives to electric vehicles (EVs).
India’s Ethanol Blending Program:
- India initiated an ethanol blending program in 2003 to reduce dependence on imported crude oil.
- After concerted policy efforts, the program achieved 10% ethanol blending in petrol in 2022, with plans to reach 20% (E20) by FY25-26.
- Ethanol producers supplied nearly 430 crore liters of ethanol in 2022, with demand expected to reach nearly 1,100 crore liters by 2025.
- Achieving the 2025 target will require investments and a consistent supply of feedstock for ethanol production.
Key issues in shifting to an ethanol-based economy:
- Much of India’s ethanol for blending comes from first-generation production using food crops, primarily sugarcane (84%) and grain (16%).
- Investments in second-generation (2G) ethanol production technologies have been slow, with limited production capacity.
- There is a need to consider the food-energy-water nexus, assess trade-offs, and develop a clear plan for scaling up 2G ethanol production.
The way ahead:
- The primary policy focus should be on reducing overall petrol consumption and addressing private demand for petrol.
- Promoting EVs in public transit and implementing pricing mechanisms for private vehicle use in urban areas can facilitate the transition to higher biofuel levels.
- A well-thought-out plan for transforming India’s transportation sector can reduce the import bill and aid the transition to EVs in the automobile industry.
Source: Indian Express, Subject: Environment Ecology and disaster management
Topic: Renewable Energy Issues: Biofuel, Ethanol blending program, Global Biofuel Alliance.
