The Indian government has introduced E20 Petrol, a blend of 20% ethanol and 80% petrol, in 11 states and union territories. The launch was ahead of schedule and was held at the India Energy Week 2023 by Prime Minister Narendra Modi.
The aim of this initiative is to reduce carbon emissions and dependence on foreign exchange-draining imports. The current blend of 10% ethanol and 90% petrol is expected to double by 2025. It has already saved Rs 53,894 crore in foreign exchange and benefited farmers.
In the first phase, the E20 Petrol will be available at 84 petrol pumps of three state-owned fuel retailers in 15 cities and will expand to cover the entire country in the next two years.
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E20 Petrol Launch in India: Boosting Biofuels, Reducing Emissions
The Indian government’s ethanol blending programme, which was introduced to provide additional income for sugarcane farmers, has been a success. Over the past eight years, ethanol suppliers earned 81,796 crore rupees, with farmers receiving 49,078 crore rupees. Additionally, the country was able to save 53,894 crore rupees in foreign exchange and reduce CO2 emissions by 318 lakh tonnes.
The launch of E20 Petrol, containing 20% ethanol and the Green Mobility Rally has increased public awareness for green fuels. The programme has led to a significant increase in ethanol procurement by public sector oil marketing companies, from 38 crore litres in 2013-14 to 452 crore litres in 2021-22. The current annual ethanol production capacity in the country is 1,037 crore litres, with 700 crore litres from molasses and 337 crore litres from grain.
The Oil PSUs are also setting up second-generation (2G) ethanol bio-refineries. The target for average 10% blending was achieved in June, 2022, ahead of schedule, leading the government to advance the target for 20% ethanol blending in petrol from 2030 to 2025.
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