India needs to increase ethanol production three times by 2025 to meet E20 goal (2024)

FAQs

What is the E20 plan in India? ›

The government has advanced the target of E20 fuel from 2030 to 2025. E20 blending in petrol was introduced by the Centre to reduce the country's oil import cost, energy security, lower carbon emissions and better air quality.

The roadmap proposes the following milestones: Raise pan-India ethanol production capacity from the current 700 to 1500 crore litres. Phased rollout of E10 fuel by April 2022. Phased rollout of E20 from April 2023, its availability by April 2025.

The Government has set target of 20% blending of ethanol in petrol under EBP programme by Ethanol Supply Year (ESY) 2025-26.

India has been attracting investments in new ethanol plants, with both domestic and foreign investors seeing potential in the market. By December 2023, the ethanol production capacity for ethanol blending and other uses is expected to reach 12440 million liters.

Since ethanol contains more oxygen than gasoline, an E20 fuel blend offers significant advantages like increase compression ratio due to inherent higher-octane number, resulting in more efficient combustion and thus accounts for lesser tailpipe emissions.

E20 fuel is a blend of 20 percent ethanol with petrol. The first E20 outlet was opened on February 8 this year -- ahead of the targeted April launch -- and as of now their number has crossed 600 and will cover the entire country by 2025, Puri told the AGM of the industry lobby IMC Chamber through a video message.

The India ethanol market attained a valuation of $6,512.27 million in 2023 and is poised for robust growth in the forecast period. The valuation on a Compound Annual Growth Rate (CAGR) basis is predicted to grow at the rate of 8.84 percent through 2029 and could reach $10456.98 million by 2029.

India has achieved an average ethanol blending rate of 11.60 per cent in the first four months of 2023-24 supply year that started from November, against the 15 per cent target set by the government for the whole year. By 2025 supply year, the government has set the target of blending 20 per cent ethanol with petrol.

India started blending ethanol in petrol on a pilot basis in 2001. The ethanol was produced as a by-product during the process of making sugar from sugarcane.

Shree Renuka Sugars is one of the biggest ethanol producers and sugar refiners in India. The company's green energy business includes producing ethanol for blending into petrol and generating electricity. They are among the major contributors to the Indian government's Ethanol Blending Program.

How much ethanol is required in India? ›

Ethanol Blended Petrol Program​ 1000+ Crore Litres of Ethanol required per year for 20% blending by 2025…. Current supplies are only one third of this.

100% E-20 petrol at Rs 90/litre in Patna | ID: 25468639062.

The United States is the world's largest producer of ethanol, having produced over 15 billion gallons in 2021 and 2022. Together, the United States and Brazil produce 80% of the world's ethanol. The vast majority of U.S. ethanol is produced from corn, while Brazil primarily uses sugarcane.

India's fuel retailers buy ethanol from sugar mills to blend with gasoline and they were paying higher price for ethanol produced from juice and B-heavy molasses.

Lucknow: Uttar Pradesh's ethanol production capacity is currently estimated at two billion litres per year which is almost eight times more than the capacity of 240 million litres per year five years back, said Laxmi Narayan Chaudhary, minister for sugarcane development and sugar industry at the Confederation of Indian ...

E20 fuel can be used with both engines. The Skoda Kushaq and the Volkswagen Taigun have 1.0-litre turbo petrol and 1.5-litre turbo petrol engine options. Both of them are E20 fuel-compliant. The MG Astor also has two petrol engine choices -- 1.5-litre naturally-aspirated and 1.3-litre turbo petrol.

New Delhi: Public sector oil marketing companies (OMCs) started selling E20 petrol in February 2023 and it is currently being sold at more than 1,900 retail outlets across the country, minister of state in the ministry of petroleum & natural gas Rameswar Teli said on Monday.

E20, or petrol blended with 20 per cent ethanol, is part of the government's commitment to reducing the country's dependence on fossil fuels, after achieving its goal of blending petrol with 10 per cent ethanol (E10). The government aims to take ethanol-blended petrol to 30 per cent by 2029-30.