Ethanol production capacity in India increases

India's Ethanol Production Grows to Meet Green Energy Goals

India’s ethanol production is growing fast, and this is great news for the country’s green energy efforts. The Department of Food & Public Distribution (DFPD) reports that India’s ethanol production capacity has jumped from 518 crore liters in 2017-18 to an impressive 1,623 crore liters in 2023-24, as of August 31, 2024. This shows how serious the government is about creating a greener future.

Ethanol Blending with Petrol Program

To reduce pollution and save fuel, the Indian government has started the Ethanol Blended Petrol (EBP) Programme. Under this program, petrol sold by Oil Marketing Companies (OMCs) is mixed with ethanol. The government aims to have 20% ethanol blended with petrol by 2025. This would help the country reduce its dependence on oil and cut down harmful emissions.

Centre takes major step towards ethanol production

New Steps to Increase Ethanol Production

Recently, the government made important decisions to further increase ethanol production. Now, sugar mills and distilleries can make ethanol from sugarcane juice, B-Heavy Molasses, and C-Heavy Molasses. This will be allowed during the Ethanol Supply Year (ESY) 2024-25.

Another big change is that the government has lifted a ban on using rice from the Food Corporation of India (FCI) stocks. Now, up to 23 lakh tonnes of rice can be sold to distilleries that make ethanol from grains. This move will provide more raw materials to ethanol producers and lead to a big rise in production.

Meeting Future Ethanol Demand

The growing ethanol production will help meet India’s domestic needs. However, to reach the 20% ethanol blending target by 2025, the country will need around 1,016 crore liters of ethanol. In total, including other uses, India will need about 1,350 crore liters of ethanol.

By 2025, it’s estimated that India will need to produce 1,700 crore liters of ethanol to meet all its needs. This is assuming that the ethanol plants work at 80% efficiency. As of now, the ethanol blending level from November 2023 to July 2024 is 13.3%, showing good progress towards the 2025 target.

Conclusion

India is moving quickly to increase its ethanol production, and this will help the country reduce pollution, save money on fuel, and make better use of its resources. The government’s strong support and recent policy changes are key to achieving the 20% ethanol blending target by 2025.

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