The Central Government in India recently extended the scope of the Ethanol Blended Petrol (EBP) programme to include more diverse sources of fuel. Beyond excess sugarcane, which was previously the only allowed source for ethanol conversion, now surplus quantities of food grains such as maize, jawar, bajra along with fruit and vegetable waste can also be utilized.
The Implications and Importance of this Policy
This expansion of policy carries potential benefits for farmers, enabling them to profit from their surplus production and diversify the sources for producing ethanol for the EBP programme. Ethanol blending is an environmentally-friendly measure that can help mitigate vehicle exhaust emissions. Furthermore, it can alleviate the import dependency on crude petroleum, the raw material for petrol production.
A 5% ethanol blending, equivalent to 105 crore litres, could replace nearly 1.8 million Barrels of crude oil. Given that ethanol burns cleaner and more completely than its petrol counterpart, the renewable ethanol content can greatly reduce carbon emission levels, including carbon dioxide, carbon monoxide, and various hydrocarbons.
About the Ethanol Blending Programme (EBP)
The EBP endeavours to blend ethanol with petrol, thereby classifying it as a biofuel and saving millions of dollars by cutting down on fuel imports. The availability of ethanol is expected to escalate due to the increased price for C heavy molasses-based ethanol and the allowance of ethanol procurement from B heavy molasses and sugarcane juice for the first time ever. Additionally, the Government has eased the burden of GST on ethanol for blending in fuel from 18% to 5%.
National Policy on Bio-fuels
The National Policy on Bio- fuels 2018 gave the National Bio-fuel Coordination Committee (NBCC) the authority to permit the conversion of surplus quantities of food-grains for ethanol production in an agricultural crop year when there is an oversupply of food-grains.
The Bio-fuel policy aims to reach 20% ethanol-blending and 5% biodiesel-blending by the year 2030. It has widened the range of feedstock for ethanol production and provided incentives for the production of advanced bio-fuels.
Table: Key Information about the National Biofuel Coordination Committee
| Title | Information |
|---|---|
| Head of the Committee | Prime Minister |
| Role | Provide policy guidance and coordination |
Challenges Faced Under the EBP Programme
Despite the progressive intentions of the EBP programme, some challenges persist. The Central Government has urged oil marketing companies to aim for a 10% blending of ethanol with petrol by 2022. However, a significant shortfall in ethanol availability looms as sugar mills currently only tap ‘C-heavy’ molasses for ethanol production.
Furthermore, the increased demand for fuel could potentially compete with food requirements, leading to concerns that only surplus food crops should be used for fuel production. Moreover, the annual capacity of biorefineries does not meet the 5% petrol-ethanol blending requirement, signifying an infrastructural gap.
Looking Towards the Future
In view of these issues, further steps must be taken to boost the ethanol production capacity of bio-refineries. Additionally, the exploration into alternative solutions such as third-generation biofuels derived from algae and fourth-generation biofuels obtained from specially engineered plants or biomass should be encouraged to meet the demand sustainably.