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Introduction
Currently, a 10 per cent ethanol blend with petrol (E10) is available in India. The National Policy on Biofuels 2018, set an indicative target of 20% ethanol blending (E20) under the Ethanol Blended Petrol (EBP) Program by 2030. However, in 2021, the deadline was preponed to 2025-26 after the NITI Aayog released the expert committee report on ethanol blending titled ‘Roadmap for Ethanol Blending in India 2020-25’.
E20 is a biofuel that has been gaining in popularity due to its environmental and economic benefits. E20 biofuel is a blend of 20% ethanol, which is derived from renewable sources such as corn, sugarcane, and other plant materials, and 80% traditional petroleum-based fuels.
What is the Ethanol Blended Petrol (EBP) Program?
The Ethanol Blended Petrol (EBP) program was launched in January 2003. The program seeks to achieve blending of Ethanol with petrol with a view to reducing pollution, conserve foreign exchange and increase value addition in the sugar industry enabling them to clear cane price arrears of farmers.
The procedure of procurement of ethanol under the EBP has been simplified to streamline the entire ethanol supply chain and remunerative ex-depot price of ethanol has been fixed.
To facilitate achieving new blending targets, a “grid” which networks distilleries to OMC depots and details quantities to be supplied has been worked out.
What is the need for E20 blending?
Energy security: India depends on imported fuel to meet its energy needs. In 2021-22, 86 percent of consumed fuel was imported. With such high import dependence, the country becomes highly vulnerable to global events like the Russia-Ukraine war or decisions of OPEC countries. Ethanol blending can reduce this dependence. The resultant reduced demand for fuel could save India about $4 billion annually.
Reducing emissions: Ethanol is a lesser pollutant. Use of ethanol-blended petrol decreases emissions such as carbon monoxide, hydrocarbons and nitrogen oxides. Higher reductions in CO emissions were observed with E20 fuel — 50 per cent lower in two-wheelers and 30 per cent lower in four-wheelers.
Extra income: The alternative use-case of sugarcane will help the farmers realize more income from their produce. Under Ethanol Blending Program, Oil Marketing Companies (OMCs) have paid sugar mills nearly Rs 81,796 crore for ethanol supplies in the last seven years (till 2022), which has helped mills to clear farmers’ dues.
What are the challenges in achieving E20 blending?
Feedstock availability is a major challenge for ethanol blended fuel. Sugarcane is going to be the central and most reliable source of ethanol supply in the country. But the current surpluses in the crop may not continue into the future. In 2020, the Indian Sugar Mills Association (ISMA) revised its cane production estimate downwards thrice. Also, no surplus maize might be available for ethanol production if the growth of both food, feed and starch industry continues. In the case of rice, there emerges to be a trade-off between exports and rice for ethanol. Exports will have to be reduced to make space for oil marketing companies (OMCs) seeking rice for ethanol.
Infrastructure: Sugarcane is locally available in only some parts of India; thus, the supply chain needs to be strengthened to accomplish the Interstate movement of ethanol. There is a need to build extensive infrastructure for storage, transportation, and distribution of ethanol from the three states that produce it, Uttar Pradesh, Maharashtra, and Karnataka, to the rest of the country.
Modifying existing petrol engines to use E20: The estimated petrol vehicles stock in India is 212.7 million as of March 31, 2023, of which two-wheelers comprised 176.2 million, three-wheelers 21.8 million, and four-wheelers 14.7 million. The modifications mean significant costs and would need many skilled technicians. It will probably take years, creating considerable disruption in the economy.
Effluents: Higher ethanol production means more effluents that need mitigation. Vinasse is an organic waste of which 12 to 20 units are produced for each unit of ethanol from sugarcane. Grain produces half as much. Its treatment before disposal or use continues to be a complex struggle.
What are the advantages of biofuels?
Reduced dependence on fossil fuels: Biofuels, produced from renewable sources like food crops, can help reduce reliance on finite fossil fuels, thereby lowering greenhouse gas emissions and mitigating climate change.
Renewable energy source: Unlike non-renewable fossil fuels, food crops can be replanted and harvested annually, making biofuels a renewable energy source.
Support for agriculture: Growing food crops for biofuels can provide additional income to farmers and contribute to rural development.
Technological advancement: The development of biofuel technologies encourages research and innovation in the renewable energy sector.
What are the disadvantages of biofuels?
Food scarcity and rising prices: Diverting food crops for biofuel production can reduce the availability of these crops for human consumption, potentially leading to food scarcity and higher prices for food items.
Environmental impact: While biofuels are generally considered more environmentally friendly than fossil fuels, their production can still have negative impacts, such as deforestation, habitat destruction, and excessive water usage.
Competition for land: Growing crops for biofuels can compete with land needed for food production or conservation purposes, leading to deforestation and biodiversity loss.
Energy efficiency and emissions: Some biofuels may have low energy efficiency and still produce significant greenhouse gas emissions during their production and transportation, diminishing their environmental benefits.
Water resources: Large-scale cultivation of biofuel crops can put strain on water resources, potentially leading to water scarcity in some regions.
What should be the way forward to achieve E20 blending?
The country’s commendable efforts to decrease fuel import reliance through its E20 mission are notable. However, the ambitious target of achieving this by 2025-26 raises concerns about potential challenges related to competition for crop and land resources between fuel and food crops. To ensure a reliable supply of feedstock for the distilleries, it is crucial to devise a careful roadmap that addresses these issues effectively.
India continues to have one of the largest populations of undernourished individuals globally, necessitating the expansion of acreages for pulses, oilseeds, and horticulture crops. Enhancing crop yields is of utmost significance, and this encompasses advancements in seeds and production techniques, particularly when these crops will be utilized for biofuel production.
Initiating a land-use plan would be beneficial. In the long run, it is essential to avoid using the existing crop land for fuel production. India has already experienced a decline in arable land. Fallow land increased by approximately 4.3 million hectares between 1978-79 and 2018-19. This land should be prioritised for producing crops for fuel.
Feedstock such as wheat straw, corn, wood, agricultural residues or municipal solid waste are typically lingo-cellulosic materials and are used as a source of bioethanol in second generation (2G) technology. The 2G technologies use crop residues, a waste that otherwise would be of no value. Therefore, more research and development efforts should be made to make the 2G technologies commercially viable.
There should not be a trade-off between achieving food and energy security. As both are critical, a strategic and a cohesive roadmap is the need of the hour.
Sources: Livemint, Business Standard, The Print
