PM Modi rolls out 20 percent ethanol-blended gasoline in 11 states/UTs

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The blend of petrol and 20% Ethanol was made available on February 6 2023 at selected petrol stations in eleven states as well as union territories in a plan to boost the utilization of biofuels in order to cut emissions and also reduce dependence on imports of foreign exchange that drain the economy.

In the present 10% Ethanol is blended into gasoline (10 percent alcohol, 90 percent gasoline) The government wants to increase this amount in 2025.

A blend of 20% Ethanol was made available on the 6th of February 2023, at select petrol stations across eleven states as well as union territories in a plan to boost the utilization of biofuels in order to cut emissions and reduce dependence on imports that drain foreign exchange.

In the present 10% Ethanol is blended into gasoline (10 percent alcohol, 90 percent gasoline) as well as the federal government plans to increase this amount in 2025.

Also read Understanding India’s policy on blending ethanol

The Prime Secretary Narendra Modi launched the higher 20% ethanol-blended gasoline two months before the rollout scheduled for April, during the India Energy Week (IEW) 2023 here.

“We have increased ethanol blending in petrol from 1.5 per cent (in 2014) to 10 per cent and are now progressing towards 20 per cent blending,” Mr. Modi said.

In the initial phase fifteen cities are covered. Then, in the coming two years it will be extended across the country.

India could have saved up to 53,000 crores in foreign exchange outgos resulting from 10% blends, while also benefiting farmers.

E-20 (petrol that contains 20 percent Ethanol (20 per cent)) will be sold at 84 petrol stations of three state-owned fuel retailers across 11 states/UTs.

Petroleum Minister Hardeep Singh Puri said India was able to blend 10% ethanol into petrol, five months ahead of schedule in June’2022.

“We also advanced the availability of E20 blended petrol to 2025, 5 years from earlier planned in 2030,” He added that currently E20 is rolling out earlier than planned on a trial basis.

“As a country on a fast trajectory of economic growth, India is projected to witness the largest increase in energy demand of any country over the next two decades, accounting for close to 28 per cent of incremental global growth in energy demand,” the official said.

Utilizing ethanol, derived from sugarcane and broken rice as well as agricultural products aids the third largest oil-consuming and importer country cut its dependence on foreign shipment. India is currently 85 percent dependent on imports to fulfill the needs for oil. It also reduces carbon emissions.

Utilization of E20 results in an estimated reduction in carbon monoxide emissions by around 50 percent in two-wheelers and around 30% in four-wheelers when compared with E0 (neat gasoline). Hydrocarbon emissions are predicted to be reduced by 20% in two-wheelers and passenger cars.

India invested USD 120.7 billion on imports of crude oil during the 2021-22 fiscal (April 2021 until March 2022). For the fiscal year currently in operation year, USD 125 billion was paid for oil imports during the initial 9 months (April 2022 through December 2022) in the first nine months alone.

Up to 400 crore litres of ethanol were blended into petrol in the year which ended November 30 2022. The next year, 540 million litres of will be purchased in the hope of launching bigger quantities of blends.

The goal of achieving an average 10% blending reached in June 2022. This was a significant advance from the date set for November 2022. Inspired by the success government pushed forward the goal of 20 percent blends of ethanol into gasoline from earlier 2030 until 2025.

A boost to sugarcane farmers

The program gives sugarcane farmers an extra revenue source. Over the past 8 years of the program, fuel providers have made a profit of Rs 81,796 while farmers earned an amount of Rs49,078. The nation has saved Rs 53,894 million in foreign exchange expenditure. It also led to the reduction of 318 million tonnes of carbon dioxide (CO2) CO2 emissions.

Alongside the announcement of E20, Green Mobility Rally was also part of IEW-23 to increase consciousness about the greener fuels that are available that are available in the country, such as E20 as well as flex fuels, CNG and hydrogen, etc.

The Rally route was filled with exhibits of creativity that highlighted the advantages accrued through the exchange of foreign currency, income to farmers, and GHG emissions reductions. Green Mobility Rally Green Mobility Rally had various kinds of two-, three-, and four-wheeler vehicles like E20, E85, CNG Hydrogen vehicles.

The engines of automobiles can be operate using E-20 (petrol Doped with 20% percent alcohol) with minor adjustments to the engines to prevent corrosion and.

The government has announced the price for ethanol that it is administered since 2014. The first time in the year 2018, the price differential of ethanol based upon the feed stock used in production of ethanol was revealed through the government.

These changes have greatly improved the supply of ethanoland so the amount of ethanol purchased by the public industry oil marketers (OMCs) has grown from 38 million litres during the Ethanol Supply Year 2013-14 (ESY defined as the supply period for ethanol beginning on December 1 of the year through November 30 in the following the year) to contracts that exceed 452 crore litres for the current ESY 2021-22.

The annual capacity of ethanol production of the state is around 1,037 crore litres . This includes 700 crore litres Molasses-based ethanol and 337 crore millilitres of production capacity based on grain.

Petroleum PSUs have also creating second-generation (2G) bio-refineries using ethanol in Panipat (Haryana) and located at Bathinda (Punjab) as well as at Bargarh (Odisha) with each with a capacity of 100 kilolitres each day (KLPD) in addition to Numaligarh (Assam) and the capacity to produce 85 KLPD.

According to the Roadmap compiled by NITI Aayog which is based on the projected sales of gasoline, the projected demand for ethanol for mixing in with gasoline is 542 million of litres in ESY 2022-23 and 698 crore litres in ESY 2023-24 988 crore litres are needed for ESY 2024-25, and 1016 crore litres of ethanol for ESY 2025-26.

Oil firms have acquired 80.09 million litres of ethanol until January 30, 2023 to be used for mixing into petrol in the ESY 2022-23 period and 6 crore litres bio-diesel to mix with diesel during the fiscal year 2022-23.