Tell Us Daily | PM Modi rolls out 20% ethanol-blended petrol in 11 States/UTs

Feb 06,2023

India saved a whopping Rs 53,894 crore in outbound forex from 10 percent blending. 

Bangalore:
Gasoline doped with 20 percent ethanol was rolled out Monday at select gas stations in 11 states and union territories as part of a program to increase biofuel use to reduce emissions and reduce dependence on foreign exchange-depleting imports.

Currently, 10 percent ethanol is mixed into gasoline (10 percent ethanol, 90 percent gasoline) and the government wants to double this amount by 2025.

Prime Minister Narendra Modi launched the higher 20 percent ethanol blended petrol two months ahead of its planned rollout in April, during India Energy Week (IEW) 2023 here.

“We have increased the blending of ethanol in gasoline from 1.5 percent (in 2014) to 10 percent and are now moving to 20 percent blending,” Modi said.

In the first phase, 15 cities will be covered and in the next two years it will be expanded across the country.

India saved a whopping Rs 53,894 crore in forex spending from 10 per cent mixing, in addition to benefiting the farmers.

E-20 (gasoline with 20 percent ethanol) will be available at 84 gas stations of three state fuel retailers in 11 states/UTs.

Oil Minister Hardeep Singh Puri said India blended 10 percent ethanol into petrol 5 months in advance in June 2022.

“We have also brought forward E20 petrol availability to 2025, 5 years from previously planned in 2030,” he said, adding that E20 is now being rolled out on a trial basis ahead of schedule.

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“As a country with rapid economic growth, India is expected to witness the largest increase in energy demand of any country over the next two decades, accounting for nearly 28 percent of incremental global energy demand growth,” he said. .

The use of ethanol extracted from sugar cane, broken rice and other agricultural products will help the world’s third largest oil consumer and importing country reduce its dependence on overseas shipments. India is currently 85 percent dependent on imports to meet its oil needs. In addition, it reduces CO2 emissions.

Using E20 leads to an estimated reduction in carbon monoxide emissions of about 50 percent for two-wheelers and about 30 percent for four-wheelers compared to E0 (pure gasoline). Hydrocarbon emissions are estimated to decrease by 20 percent for both two-wheelers and passenger cars.

India spent $120.7 billion on crude oil imports in the 2021-22 fiscal period (April 2021 to March 2022). In the current fiscal year, $125 billion has been spent on oil imports in the first nine months alone (April 2022 to December 2022).

As much as 440 crore liters of ethanol was blended into gasoline during the delivery year ending 30 November 2022. A purchase of 540 crore liters is being targeted for the following year with a view to increasing blending volumes.

The target of reaching an average blend of 10 percent was reached in June 2022, much ahead of the target date of November 2022. Buoyed by the success, the government has brought forward the target of 20 percent ethanol blending in petrol from earlier 2030 to 2025.

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The program gives sugar cane farmers an additional source of income. Over the past eight years, ethanol suppliers have earned Rs 81,796 crore while farmers have earned Rs 49,078 crore. The country saved Rs 53,894 crore in foreign exchange outflows. It also led to a reduction in carbon dioxide (CO2) emissions by 318 lakh tonnes.

Along with the launch of E20, Green Mobility Rally was also part of the IEW-23 to raise public awareness of the country’s green fuels such as E20, flex fuels, hydrogen and CNG etc.

The Rally route had displays of creatives showing benefits in terms of foreign exchange, income for farmers and reduction of greenhouse gas emissions. The Green Mobility Rally had different types of two, three and four wheelers such as E20, E85, CNG, Hydrogen vehicles.

Car engines can run on E-20 (gasoline doped with 20 percent ethanol) with minor engine modifications for corrosion, etc.

The government has communicated the regulated price of ethanol since 2014. For the first time in 2018, the differential price of ethanol based on the feedstock used for ethanol production was announced by the government.

These decisions have significantly improved the supply of ethanol, consequently the purchase of ethanol by public oil marketing companies (OMCs) increased from 38 crore liters in the ethanol supply year 2013-14 (ESY defined as the supply period of ethanol from December 1 of one year to November 30 of next year) to contracts over 452 crore liters in current ESY 2021-22.

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The current annual ethanol production capacity in the country is about 1,037 crore-litres, including 700 crore-litres of molasses-based and 337 crore-litres of grain-based production capacity.

Oil PSUs are also setting up second generation (2G) ethanol biorefineries in Panipat (Haryana), in Bathinda (Punjab) and in Bargarh (Odisha) each with a production capacity of 100 kilo liters per day (KLPD) and in Numaligarh (Assam) with a production capacity of 185 KLPD.

According to the roadmap prepared by NITI Aayog, which is based on projected gasoline sales, the estimated need for ethanol for blending with gasoline is 542 crore liters for ESY 2022-23, 698 crore liters for ESY 2023-24, 988 crore liters for ESY 2024-25 and 1016 crore liters for ESY 2025-26.

Oil companies have procured 80.09 crore liters of ethanol for blending into gasoline during ESY 2022-23 and 6 crore liters of biodiesel for blending with diesel during FY 2022-23 until January 30, 2023.