Introduction:

The world is driving towards sustainability and India’s ethanol blending program represents a bold stride towards achieving energy independence while mitigating environmental concerns. With an ambitious target of reaching 20% ethanol blending in petrol by 2025, the program seeks to diminish reliance on imported crude oil, projected to save the country approximately $4 billion annually. In this article we have delved into the multifaceted aspects of India’s ethanol blending program, examining both its promising potential and the challenges it faces. Let’s begin.

India’s ethanol blending program: a Dual-edged sword.

The Indian government aims to achieve 20% ethanol blending (E20) in petrol by 2025, up from approximately 10% in 2023. This ambitious target is projected to reduce crude oil imports saving about $4 billion annually, and lower GHG emissions by 10 million tons.

The initiative showcases benefits in many aspects, such as economic growth, reduced greenhouse gas emissions. As the country endeavours to integrate greater volumes of ethanol into its fuel mix, critical issues related to water usage, land management, and food security come to the forefront.

India’s ethanol blending program, aimed at reducing emissions and boosting energy self-reliance, faces significant challenges related to water usage, land management, food security, and overall sustainability. While the program aims to reduce dependence on crude oil imports, lower greenhouse gas emissions, and promote rural incomes, its reliance on water-intensive crops such as sugar cane, rice, and corn raises concerns.

Producing 1 litre of ethanol from sugarcane requires approximately 2860 litres of water. India’s annual ethanol demand for E20 blending is projected at 1016 crore litres, requiring an estimated 2.9 litres of water for sugarcane-based ethanol production alone.

The country’s leading sugarcane-producing states, including Maharashtra, for example, dedicate 4% of their cultivated area to sugarcane, which consumes over 60% of the state’s irrigation water. Similarly, Punjab and Haryana face alarming declines in groundwater levels, largely due to irrigation-intensive farming.

Recent reports from the Central Ground Water Board (2024) demonstrate that 60% of monitored wells have shown a decline in water levels over the last decade, raising concerns about over-extraction for ethanol crops. In some regions, including parts of Haryana, groundwater levels fail at 1.2 meters per year.

However, there are land use challenges: Ethanol vs. food security:

To meet the E20 targets, an additional 5.5 million hectares of land may be required, raising concerns about food security, and environmental sustainability. India already allocates over 5 million hectares to sugarcane, often at the expense of critical food crops such as pulses and oil seeds.

The diversion of agricultural land for ethanol crops may also lead to deforestation and biodiversity loss.

Now the challenge is that endless sugarcane monoculture depletes soil fertility, increasing dependence on chemical fertilizers and agrochemicals. According to 2024 reports by the Indian Council of Agricultural Research(ICAR), reprised sugarcane cultivation has reduced soil productivity by 25% in key regions over the past decade.

What is ethanol blending?

Ethanol blending refers to the procedure of combining ethanol, which is a renewable biofuel derived primarily from biomass such as sugarcane, corn or agricultural waste, with conventional fossil fuels such as petrol or gasoline. The mixture is then used as a fuel for vehicles. Ethanol blending is denoted by the percentage of ethanol in the blend. For example:

E10: 10% ethanol +90% petrol

E20: 20% ethanol +80% petrol

This program aims to reduce reliance on fossil fuels, mitigate greenhouse gas (GHG) emissions, and improve air quality.
 

Ethanol is produced through fermentation of sugar-rich feedstocks such as sugarcane, molasses or starch-based crops. For example, corn, and wheat.

Agricultural residues and waste materials are used for second-generation ethanol, which is more sustainable.

The ethanol produced using these processes is sent to blending facilities. Dedicated storage systems or tanks are used to store ethanol and petrol separately to maintain quality.

Ethanol and petrol are mixed in pre-determined proportions such as E10 or E20 at specialized blending facilities or depots. Automated systems ensure precise blending to meet regulatory standards. The blended fuel is transported to fuel stations for retail distribution. Vehicles with compatible engines can use this fuel seamlessly.

Modern petrol engines can handle lower ethanol blends without modifications. Whereas higher blends such as E20 or E85 may require flex-fuel vehicles or slight engine adjustments to optimize performance and efficiency.

Key features:

Ethanol is a biofuel derived from plants, which makes it a renewable and cleaner alternative to fossil fuels.
Combustion of ethanol emits fewer pollutants, including carbon monoxide and particulate matter.
Ethanol has a high octane number, that improves fuel efficiency and engine performance.
Ethanol blending reduces the lifecycle emissions of fuels, which contributes to a lower carbon footprint.
Ethanol blends also reduce the reliance on imported crude oil while enhancing the national energy security.

Benefits:

Lower GHG emissions help in combating climatic changes
Reduction in tailpipe pollutants improves air quality.
Reduces the need for crude oil imports and thereby saves foreign exchange.
Supports farmers by creating demand for feedstocks such as sugarcane, and corn
Ethanol blending helps in energy transition, as it promotes the transition to cleaner, renewable energy sources.

Impact on GHG emissions reduction in India:

India’s ethanol blending program has had a notable impact on reducing the emission of greenhouse gases, achieving a reduction of approximately 10 million tons of C02 equivalent emissions by 2023. This is achieved through:

Lower carbon intensity of ethanol: ethanol has a lower carbon footprint compared to other fossil fuels during combustion. During combustion petrol releases significant carbon dioxide, ethanol being a biofuel, emits Co2, which is absorbed during the crop’s growth, creating a more balanced carbon cycle.

By blending 10% ethanol with petrol (E10), India has effectively displaced millions of litres of petrol usage, directly reducing emissions from fossil fuel combustion.

Ethanol production in India utilizes sugarcane, molasses, surplus rice, as well as agricultural waste. This prevents waste accumulation and reduces methane emissions from decomposing biomass.

Transition to second-generation ethanol (2G) derived from crop residues enhances sustainability further by minimizing land use changes and associated emissions.

Impact on ethanol blending due to crude oil imports:

Ethanol blending programs directly downsize the dependence on crude oil by substituting a portion of petroleum-based fuels with ethanol, a bio-based renewable fuel. In countries like India, which imports a significant portion of its crude oil, ethanol blending contributes to:

Lower import volume:

Ethanol can potentially replace petrol or diesel in specified proportions. For example: E10 contains 10% ethanol and 90% petrol.
India achieved its 10% ethanol blending target in 2023, saving approximately 4 billion litres of petrol annually.
This substitution reduces crude oil imports, helping to alleviate the economic burden of oil price fluctuations and trade deficits.
Reducing dependence on imported crude enhances energy self-sufficiency and protects the economy from global market volatility.
Ethanol blending has the potential to save India $4 billion annually on its oil import bill and free resources for other developmental priorities.

Other benefits of the program:

The Indian government has helped in reducing crude oil imports by 181 lakh metric tons, saving foreign exchange, and reducing CO2 emissions.
Expanding feedstock for ethanol production
Lowering GST rate to 5% on ethanol
Amending the Industries (Development and Regulation)Act to allow the free movement of ethanol across states
Providing an interest subvention scheme to increase ethanol production capacity

Take away:

To conclude, India’s efforts to enhance ethanol blending as a part of its energy strategy epitomize the delicate balance between progress and sustainability. While the program holds promise for reducing greenhouse gas emissions and fostering economic growth, it must carefully navigate the associated challenges, particularly concerning water conservation and food security. By investing in sustainable agricultural practices and diversifying feedstocks, India can strengthen its natural resources for future generations. The path forward will require innovative solutions and collaborative efforts to ensure that the benefits of this transition are equitably shared across the nation.