Ethanol + petrol: How to blend more and blend better”

Source: The post is based on the article “Ethanol + petrol: How to blend more and blend better” published in Indian express on 24th July 2023.

Syllabus: GS 3 – Infrastructure – Energy

News: The article discusses India’s growth in ethanol production in recent years. Ethanol, a fuel, can be made from sugarcane and grains like rice and maize. India now blends 20% ethanol with petrol. The government promotes diverse raw materials for ethanol by setting different prices. New technologies in distilleries reduce pollution and create useful by-products like fertilizers and animal feed.

How will India achieve its 20% ethanol blending target by 2025?

Diversified Feedstocks: India no longer relies only on sugarcane for ethanol. Mills/distilleries now use various feedstocks including B-heavy molasses, direct sugarcane juice, rice, maize, and other grains. For example, Triveni Engineering’s distillery uses both molasses and grains, allowing year-round operation.

Increased Production: The country’s ethanol supply to oil marketing companies (OMCs) rose significantly from 38 crore liters in 2013-14 to 559 crore liters in 2022-23. This growth indicates a robust production system in place.

Higher Yields from Grains: Grains give higher ethanol yields compared to molasses. For instance, rice produces 450-480 liters from one ton, while maize gives 380-400 liters. These higher yields can boost overall ethanol production.

Innovative Technologies: Some leading sugar companies — including Triveni Engineering & Industries Ltd, DCM Shriram and Dhampur Sugar Mills — have installed distilleries with the flexibility to operate on multiple feedstocks and, hence, round the year. They use molasses from November to April and grains from May to October.

Environmental Benefits: Modern distilleries use technology to minimize pollution. By-products from these processes, such as fertilizers and animal feed, provide added value.

What is the government initiative in this direction?

Differential Pricing

The government introduced a policy of setting different prices based on the raw material used. Before 2018, a single price was set for ethanol regardless of the feedstock. However, from 2018-19, the Modi government began pricing ethanol from B-heavy molasses and sugarcane juice higher to compensate mills for lost sugar revenues.

For 2022-23, the prices set by the government ranged from Rs 49.41/liter for C-heavy molasses to Rs 65.61/liter for sugarcane juice/syrup. This differential pricing encourages diverse feedstock use.