[Answered] What is ethanol blending? Highlight the challenges of 20% ethanol blended fuel.

Blending ethanol with petrol to burn less fossil fuel, while running vehicles is called ethanol blending. Ethanol is an agricultural by-product which is mainly obtained from the processing of sugar from sugarcane, but also from other sources such as rice husk or maize. The government of India has advanced the target for 20 percent ethanol blending (E20) in petrol to 2025 from 2030.

More ethanol output would help increase farmers’ incomes. Ethanol blending will help bring down our share of oil imports (almost 85%). According to NITI Aayog, this will help in saving ₹30,000 crore of foreign exchange per year, increased energy security, lowered carbon emissions, better air quality, self-reliance, better use of damaged food-grains, and greater investment opportunities.

Challenges of 20% ethanol blended fuel:

• Challenges to vehicle manufacturers: The vehicles are now required to become both materials compatible and fuel-efficient compatible for E20 fuel. Storage is going to be the main concern, for if E10 supply has to continue in tandem with E20 supply, storage would have to be separate which then raises costs.
• High Usage of Water: For India, sugarcane is the cheapest source of ethanol. A litre of ethanol from sugar requires 2,860 litres of water.
• Food Security concerns: Ethanol derived from rice, corn and sugar could undermine food security in the world’s second-most populous country. India still ranks 101st on the Global Hunger Index 2022 comprising 116 nations. Climate change-induced heatwaves are a worrying factor and can lead to lower-than-expected harvests.
• Inefficient land use: Need to bring in 30,000 additional sq km of land to come under maize cultivation. However, half of that land can be used more efficiently to produce clean electricity from solar energy.

Way forward:

• For better acceptability of higher ethanol blends in the country, the retail price of blended petrol should be lower than normal petrol. The government can consider providing tax breakson ethanol.
• The vehicle manufacturers have to produce equipment future-ready.
• To ensure predictability and to encourage investment by entrepreneurs, the government has to declare a floor price of ethanol for five years.