New Delhi’s new fuel mandate requires gas stations to sell fuel containing 20% biofuel
The energy crisis arising from the Middle East conflict has given momentum to India’s ethanol push, with the country laying out a roadmap to slash petrol use and increase the biofuel content for vehicles.
Earlier this month, India okayed the regulatory framework for the use of 100% ethanol (E100) as a transportation fuel. The step paves the way for a rollout of automobiles powered solely by ethanol, RT India reports.
New Delhi announced an E20 fuel mandate in April – with energy supplies under stress following the blocking of the Strait of Hormuz – which required gas stations to sell only E20 fuel, petrol cut with 20% ethanol.
Ethanol is primarily produced from agricultural feedstocks, such as sugarcane and grains, in India. New Delhi began experimenting with ethanol blending on a pilot basis in 2001.
The government is also mandating the sale of E100 fuel for specially designed engines.
“The higher ethanol blending is being driven by the need for energy security, enhancing farmers’ incomes, and reducing the carbon footprint,” Indian Sugar Bio-energy Manufacturers Association Director General Deepak Ballani told RT.
New Delhi has the capacity to blend 20 billion liters of ethanol, but is currently using only 11 billion liters for the purpose.
The government says blending has reduced crude oil imports and saved nearly $19 billion, and generated billions in additional income for farmers.
The transition has its own set of challenges – sugarcane and rice, the key raw materials, are water-intensive. Higher ethanol blends also require millions more compatible vehicles on the road and a much larger fuelling network equipped to distribute the blended fuel.
Moving beyond E20 presents a much bigger challenge as E85 and E100 can only be used in flex-fuel or dedicated ethanol vehicles. Only a handful of such models exist in India; and fuel stations offering higher ethanol blends remain limited. Carmakers, consumers, and fuel retailers are all moving cautiously as the ecosystem is just developing.
The initiative’s success is not about higher blending targets. It will depend on building the right vehicles, expanding fuel infrastructure, and ensuring that cleaner fuel doesn’t come at the cost of other resources.
Additionally, India has directed the state-backed Oil and Natural Gas Corporation to build and fill another strategic petroleum reserve facility to be ready for future energy crises.
