Context (TH| IE| BS): GoIallowed sugarcane juice to make ethanol a week after the ban.
It permitted sugarcane juice and B-heavy molasses (by-product of sugar) for green fuel production but limited sugar diversion to 17 lakh tonnes.
For now, the capping will be in place for the 2023-24 supply year that ends in October next year.
Ethanol
Ethanol (ethyl or grain alcohol) is a biofuel produced by yeast fermentation of sugars or starches.
The hydration of ethylene can also produce it.
It is a volatile, flammable, colourless liquid with a pungent taste and odour.
It is commonly used as a recreational beverage, a fuel source, a solvent, and an industrial feedstock.
Ethanol is 99.9% pure alcohol that can be blended with petrol.
Why is the Government so Focused on Ethanol-blending?
Earlier, the demand for ethanol was from potable liquor and chemicals companies.
But now ethanol blending is on the top priority list of the government. The reasons for this are:
Environment friendliness of ethanol
Reduce reliance on oil imports
Cheaper than petrol
Consequently, sugar/sugarcane started getting diverted for ethanol production in the past few years.
In addition to sugarcane, India is establishing modern technology-based ethanol plants to convert agricultural waste/surplus into ethanol.
Ethanol Blending Programme (EBP)
The EBP programme was launched in 2003 with multiple objectives, including:
Reducing import dependence
Savings in foreign exchange
Providing a boost to the domestic agriculture sector
Associated environmental benefits.
Under EBP, India aims to blend 20% ethanol in petrol (E20) by 2025.
Increase in Ethanol Blending
All-India average blending of ethanol in petrol has risen from 1.6% in 2013-14 to 11.8% in 2022-23.
Ethanol blending in petrol has risen due to feedstock diversification.
Feedstock of India’s Ethanol Blending
Under the National Policy on Biofuels 2018, the GoI allowed the conversion of B-Heavy molasses (a by-product of sugar), sugarcane juice and damaged food grains (DFG) to produce ethanol.
This began differentiated ethanol pricing based on raw material/feedstock.
The move enabled:
A reliable supply of feedstocks
Price stability for farmers
Moreover, in 2020, maize was introduced for ethanol production.
Technically, any starch-rich crop, including potato, corn, wheat, rice, sorghum, barley, rye, cassava, and triticale, can be used for fuel ethanol production.
Brazil is a leader in ethanol-blended gasoline.
Challenges to India’s Ethanol Policy
High dependence on sugarcane, which is water-intensive. Thus, a weak monsoon or erratic rainfall poses a great threat to the industry.
Shortage of sugar for consumption
Lower calorific value: Pure ethanol has a lower calorific value than petrol, leading to an inverse correlation between vehicle mileage and the ethanol blend percentage.
Vehicle health: Using ethanol-mixed petrol can lead to corrosion and rust in the fuel tank as it has high polarity and moisture affinity.
Way Ahead
Increase grains as feedstock: The successful implementation of the EBP programme needs 50% ethanol to be produced through grain-based distilleries.
Increase maize as feedstock: Maize-based ethanol is more economical and water-efficient than sugarcane.
Dual feedstock capability plants: Setting up dual feed (molasses or grain) ethanol plants.
Biofuels are fuels (solid, liquid, and gaseous) that are derived from biomass/organic matter.
As biofuels emit less CO2 than conventional fuels, they can be blended with existing fuels to effectively reduce CO2 emissions in the transport sector.
Biogas is a type of biofuel that is produced by anaerobic digestion of organic matter.
Biofuels Generation
Generation
Feedstock
Carbon Content
Example
First
Food crops
High carbon content
Bioethanol, biodiesel
Second
Non-food biomass
Carbon content less than 1st generation biofuels
Cellulosic ethanol, biodiesel from waste vegetable oil