Ethanol Blending Programme (EBP), Objectives, Achievements

PWOnlyIAS February 10, 2025 07:22 234 0

Ethanol Blending Programme was introducted in Janaury 2003 to secure energy future by embracing sustainable practices. Learn more about EBP here.

Ethanol Blending Programme (EBP), Objectives, Achievements

Ethanol Blending Programme (EBP) is a significant step by the Government of India toward reducing dependence on fossil fuels and enhancing energy security. The Government of India is planning of achieving ethanol blending targets 20% by 2025. 

By blending ethanol with petrol, this initiative aims to reduce carbon emissions, promote renewable energy sources, and support the agricultural sector. The programme aligns with the National Policy on Biofuels, which sets targets for increasing ethanol usage in the country’s fuel mix.

What is Ethanol Blending Programme?

The Ethanol Blending Programme (EBP) was introduced to promote the use of ethanol as an alternative fuel by blending it with petrol. Ethanol is a biofuel derived from sugarcane, maize, and other biomass sources, making it a cleaner and more sustainable option than conventional fossil fuels.

Ethanol Blending Programme

Source – PIB

Objectives of the Ethanol Blending Programme

  • Reduce import dependency on crude oil
  • Lower carbon emissions and improve air quality
  • Enhance farmer income by creating a market for agricultural byproducts
  • Promote the use of renewable energy sources

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What is Ethanol Blended Petrol (EBP)?

Ethanol Blended Petrol (EBP) is a mixture of ethanol and petrol, aimed at reducing the carbon footprint of fuel consumption. Initially, the government allowed up to 10% ethanol (E10) blending, but higher blends like E20 (20% ethanol in petrol) are now being implemented to reduce dependency on fossil fuels.

Ethanol Blending Target in India

The government is taking strong steps to increase ethanol blending in petrol. Originally, the goal was to reach 20% ethanol blending by 2030, but now it has been moved up to 2025. This shows India’s commitment to using cleaner and more sustainable energy. The government has set ambitious targets to increase ethanol blending levels:

Year Ethanol Blending Target
2022 10% (E10) – Achieved
2025 20% (E20) – Target
2030 Higher Blending Levels Proposed

By April 2023, India achieved 12% ethanol blending, progressing steadily towards the E20 target by 2025.

What is E20 Petrol?

E20 petrol is a fuel blend consisting of 20% ethanol and 80% petrol. This blend is designed to:

  • Improve engine efficiency and performance
  • Reduce greenhouse gas emissions
  • Lower dependence on crude oil imports
  • Encourage the use of domestically produced ethanol

E20 fuel is being introduced in a phased manner across India, with automobile manufacturers modifying engines to be compatible with higher ethanol blends.

National Policy on Biofuels

The National Policy on Biofuels (2018, updated in 2022) provides a framework for promoting biofuels like ethanol and biodiesel in India. Key highlights of the policy include:

  • Advancing ethanol blending target to 20% by 2025
  • Expansion of feedstock sources for ethanol production (e.g., sugarcane, maize, surplus food grains)
  • Encouraging bio-refineries and investment in ethanol production infrastructure
  • Incentivizing farmers and sugar mills to contribute to ethanol production

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Major Achievements of the Ethanol Blending Programme (EBP)

The Ethanol Blending Programme (EBP) has achieved significant milestones under the leadership of Prime Minister Narendra Modi, driving energy security, sustainability, and rural economic growth.

Ethanol Blending Programme

Credits- PIB

1. Advancing Ethanol Blending Targets

  • The initial target of 20% ethanol blending (E20) by 2030 was advanced to 2025 by the Cabinet Committee on Economic Affairs (CCEA) in 2020.
  • This decision reflects the government’s strong commitment to increasing ethanol usage and reducing fossil fuel dependency.

2. Growth in Ethanol Production Capacity

  • Ethanol production capacity has more than doubled in the last four years.
  • As of September 18, 2024, the capacity reached 1,623 crore litres, ensuring a stable ethanol supply for blending.

3. Rapid Increase in Ethanol Blending Percentage

  • 2013-14: Ethanol blending was only 1.53% with 38 crore litres.
  • 2020-21: Ethanol blending increased to 8.17% with 302.3 crore litres blended.
  • 2022-23: Blending percentage rose to 12.06% with over 500 crore litres blended.
  • 2023-24: As of August 31, 2024, blending surpassed 13%, with 545.05 crore litres of ethanol used.
  • 2024: Ethanol blending reached 15%, demonstrating rapid progress towards the 20% target by 2025.

Ethanol Blending Programme

Credits – PIB

4. Reduction in Crude Oil Imports

  • 181 lakh metric tons of crude oil have been replaced through ethanol blending.
  • This helps reduce India’s dependence on crude oil imports, improving energy security.

5. Environmental Benefits

  • The ethanol blending initiative has led to a reduction of 544 lakh metric tons of CO₂ emissions, contributing to a cleaner environment.
  • Supports India’s climate change commitments by promoting cleaner fuel alternatives.

6. Economic Impact & Foreign Exchange Savings

  • ₹1,06,072 crore saved in foreign exchange due to reduced crude oil imports.
  • ₹1,45,930 crore disbursed to distillers by Oil Marketing Companies (OMCs) to boost ethanol production.
  • ₹87,558 crore paid to farmers, ensuring better income opportunities for rural communities.

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7. Support for Farmers and Rural Economy

  • The increased demand for ethanol has created a new market for sugarcane, maize, and other agricultural products.
  • Farmers benefit from higher incomes and better price stability for ethanol-related crops.

8. Future Plans and Expansion

  • With the 20% blending target set for 2025, the government is already planning for higher blending levels beyond E20.
  • Continued investments in ethanol infrastructure and policies will further enhance energy security and sustainability.

Challenges in Ethanol Blending

Despite its benefits, the Ethanol Blending Programme faces challenges such as:

  1. Availability of feedstock – Seasonal fluctuations in sugarcane and maize production impact ethanol supply.
  2. Vehicle compatibility – Older vehicles may not be designed for high ethanol blends like E20.
  3. Storage and distribution issues – Ethanol is hygroscopic and requires specialized storage infrastructure.

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FAQs on Ethanol Blending Programme

The Ethanol Blending Programme (EBP) is an initiative to blend ethanol with petrol to reduce carbon emissions, decrease dependence on crude oil imports, and promote biofuel usage in India.

Ethanol Blended Petrol (EBP) is a mixture of ethanol and petrol, with ethanol percentages ranging from 10% (E10) to 20% (E20) and beyond.

The Government of India aims to achieve 20% ethanol blending (E20) by 2025, advancing the target from the previous deadline of 2030.

E20 petrol is a blend of 20% ethanol and 80% petrol, developed to reduce emissions and enhance fuel efficiency.

The National Policy on Biofuels (2022 update) promotes biofuel production, expands ethanol feedstock sources, and sets blending targets to reduce fossil fuel dependency and boost renewable energy adoption.
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