Although the disadvantages of using ethanol compared to petrol are well known even in countries like the U.S. and Brazil that are leaders in ethanol blending. 

• The technology and engineering required to safely and efficiently run vehicles on ethanol–petrol blends (ranging from 5% ethanol to 100% ethanol) is already well-developed and proven.

About Ethanol Blending

• Historical Context: Ethanol blending began as a response to the oil shock of the 1970s.
• Definition: Ethanol blending is the process of mixing ethanol, a biofuel typically made from crops like sugarcane or corn, with petrol in specific proportions (e.g., E10 = 10% ethanol, 90% petrol) to reduce fossil fuel use, cut emissions, and promote renewable energy.
• Environmental Benefit: It  is considered carbon neutral, aligning with global efforts to reduce carbon emissions. 
• India’s Key Motivations: For India, the primary motivations are import substitution and ensuring lower fuel prices for consumers. 
  • The government asserts that achieving a 20% ethanol blending target (E20) can result in an annual saving of $10 billion for the Indian economy, keeping this money within the country. 
  • This financial benefit is expected to trickle down to domestic suppliers, including farmers, traders, and distillers involved in ethanol production.
• Ethanol production in India primarily relies on three sources:
  • C-heavy molasses, a byproduct of sugar manufacturing that is not used for sugar making.
  • Broken rice, which would otherwise rot in government godowns.
  • Maize, a crop considered agriculturally less demanding.

Challenges and Concerns in Implementation of Ethanol Blending

• Food Security:  Once the ethanol economy fully establishes itself, there is a risk that food stocks might be deprioritised over the interests of ethanol stakeholders during times of shortage or imbalance. 
  • The projected $10 billion in import substitution savings could be dented by the need to import farm inputs, such as fertilisers, which also incur a significant foreign exchange outflow.
• Impact on Vehicle Components: Ethanol has an efficiency penalty and is known to affect material durability and corrode fuel handling systems in vehicles.
• Vehicle Compatibility Issues: While global studies indicate that vehicles manufactured under norms like Euro 2, US Tier 1, and India’s BS2 (in force since 2001) are compatible with up to E15 ethanol blending, a major concern is the impact on the vast number of older vehicles currently on Indian roads. 
  • Many older models, even those sold as recently as five years ago, were designed to accept only E5 fuel. 
  • Vehicles sold in India since 2023 are committed to handling up to E20 standards.
  • However, there is a lack of clear information from automakers regarding the compatibility and potential mitigation routes for their past brands.
• Limited Consumer Choice: Indian consumers currently lack the choice to opt for non-ethanol blended fuel, limiting their options if they have concerns about their vehicles or personal preferences.
• Price Discrepancy: Despite claims of lower prices due to ethanol blending, this reduction is not consistently reflected at the fuel stations.
• Cost of Production: While small-scale ethanol production might be cost-effective, large-scale operations could render ethanol more expensive.

Established Technological Readiness of Ethanol Blending

• The engineering for safe and efficient use of ethanol-blended petrol, from 5% to 100%, is well-established globally.
• Closed-loop fuel control systems, mandated in BS2 and later vehicles, help control fuel burning and emissions, mitigating efficiency and durability penalties of ethanol use.
• Upgraded materials in BS2 vehicles are designed to reduce corrosion caused by ethanol.

India’s Current Standards and Targets

• India has adopted two ethanol-specific norms for vehicle compatibility.
• The country aims to reach an E27 blending target, taking inspiration from Brazil’s successful ethanol programme.
• Government research indicates no harm from current ethanol blending levels.

Measures for Successful Implementation of Ethanol Blending

• Automaker Accountability: Automakers should disclose ethanol compatibility of past vehicle models and propose mitigation routes for older vehicles.
• Government Support for Consumers: The government should back insurance claims for any engine or vehicle issues arising from ethanol use.
• Policy Transparency: All policy measures related to ethanol blending should be transparent to build public trust and facilitate informed decisions.
• Sustained Political Commitment : Consistent political will and stable resource allocation are essential to prevent the programme from becoming merely aspirational.

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