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Ethanol blending

Facts for Prelims (FFP)

Source: HBL


Context: Oil marketing companies (OMCs) receive 45% of contracted 514 crore litres of ethanol for the ethanol supply year (ESY) 2022-23 ending October. It will help them to increase blending to 11.65% against 10% during the same period a year ago.


Ethanol blending in India:

What is Ethanol blending?Blending ethanol with petrol to burn less fossil fuel while running vehicles
National Policy on Biofuels 2018 Target20% ethanol blending under the Ethanol Blended Petrol (EBP) Programme by 2025; the Current Ethanol Blending Ratio is 10%; the Current year target is 12%.
SignificanceLess polluting fuel, lower cost, energy security, transitioning to a low carbon economy, enabling local enterprises and farmers to participate in the energy economy
Benefits of Ethanol BlendingEstimated $4 billion per annum saving with 20% ethanol blending; Reduction in the emission of CO2, CO, and HC, a lower share of oil imports, replacement of crude oil, boosting farmers’ income, minimizing air pollution
ChallengesShift towards sugarcane production, storage constraint, food insecurity, instability of ethanol movement between states, no reduction in emission of nitrous oxide
Recent Government InitiativesNational Policy on Biofuels 2018, E100 Pilot project, Pradhan Mantri JI-VAN Yojana 2019, Repurpose Used Cooking Oil (RUCO); a pilot project for E20 fuel launched recently
Way ForwardEnsuring uniform availability of ethanol blends, promoting advanced biofuels, addressing challenges associated with ethanol blending