India has made significant strides in ethanol blending over the years, reflecting its commitment to enhancing energy security and reducing carbon emissions. Since the inception of ethanol blending initiatives in 2001, the country has progressively increased its ethanol penetration, reaching a national average of 12% v/v in the 2022-2023 ethanol supply year. This growth is supported by the government’s policies, which include reducing the goods and services tax on fuel ethanol and providing financial assistance for expanding grain-based ethanol production facilities.
In response to growing ethanol demand, India has ramped up its production capacity. By 2023, the country achieved an ethanol production capacity of over 10.82 billion litres annually, significantly surpassing previous years. Despite these advancements, India’s ethanol production still trails its consumption, necessitating further investments to achieve future targets, such as the ambitious E20 mandate slated for 2025.
Comparatively, India’s ethanol blending policies are more stringent than Brazil’s, particularly regarding quality specifications like minimum octane numbers and maximum sulfur content. While Brazil leads with a higher blending mandate of up to 27.5% v/v, India’s focus on ultra-low sulfur fuels showcases its commitment to cleaner energy solutions. However, as a net importer of ethanol, India faces challenges in matching Brazil’s production and consumption levels.
Projections in Ethanol Blending
To address these challenges, India is encouraging the adoption of flex-fuel technology in the automotive sector. Automakers are beginning to introduce flex-fuel vehicles, with Toyota launching a pilot for a flex-fuel hybrid in 2022. This move aligns with India’s goal of increasing ethanol usage across the transportation sector, setting the stage for a more sustainable and self-reliant energy future.