India: Phased Rollout of 20 Per Cent Ethanol Blending to Commence this April

January 11, 2023

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(Economic Times) India has increased ethanol blending in petrol from 1.53 per cent in 2013-14 to 10.17 per cent in 2022 and also advanced its target to achieve 20 per cent from earlier 2030 to now 2025-26.

The phased rollout of 20 per cent ethanol blending in India will begin this April, the Petroleum and Natural Gas Ministry said on Tuesday.

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The government is also setting up five 2G ethanol biorefineries -- Panipat (Parali) in Haryana, Bathinda in Punjab, Bargarh (Parali) in Odisha, Numaligarh (Bamboo-based) in Assam, and Devangere in Karnataka -- as it shifts focus on cleaner sources of energy.

Also, the Centre increased the rate for Compressed Biogas (CBG) plants from Rs 46 per kg to Rs 54 per kg and is taking steps to ensure bio manure produced during CBG production is bundled with fertilizers like urea.

Last week, Union Cabinet formally approved the National Green Hydrogen Mission, which aims to make India a global hub for producing, utilising, and exporting such technologies. The government has sanctioned Rs 19,744 crore fo2nr implementation of the project.

India meets a sizable portion of its energy needs through imports, and diversifying indigenous sources is seen as an avenue to reduce the dependence on imported fuel. READ MORE

India Achieves Ethanol Blending Target Early (Energy.AgWired.com)

U.S. Ethanol Industry Praises India on Achieving Blending Target (U.S. Grains Council)

India to roll out 20% ethanol blended auto fuel by 1 April (Independent Commodity Intelligence Services)

India is blending its way into needing US ethanol (Agri-Pulse)

Analysis: India's rapid take-up of electric vehicles prompts rethink about long-term fuel needs (Reuters)

Explainer: What is Ethanol blending petrol & India's E20 (Times of India)

Excerpt from Energy.AgWired.com: The Renewable Fuels Association, U.S. Grains Council and Growth Energy offered congratulations to the country for this progress. “Ethanol presents an immediate solution to tackling two of the world’s greatest modern challenges: it represents an efficient alternative to petrol without infrastructure change and is a preeminent solution to mitigating the impending climate crisis,” the groups said. “India’s decision will provide economic benefits to domestic producers, facilitating new cycles of innovation and investment.”

The three groups issued the statement ahead of India’s upcoming Auto Expo 2023, one of Asia’s largest automotive trade shows that’s expected to welcome more than 115,000 visitors to New Delhi next week. Representatives from RFA, the U.S. Grains Council and Growth Energy will all be on-site at the trade show.

“We are delighted to be so warmly welcomed here in India at the Auto Expo 2023 and fully support India’s bright and ambitious goal of transitioning toward higher blends. We look forward to working together with Indian businesses on the path toward net zero.” READ MORE

Excerpt from Times of India:

Why E20?

According to “Roadmap for Ethanol Blending in India: 2020-2025” a report by a special expert committee set up by the Centre, India’s net import of petroleum was 185Mt at a cost of $551 billion in 2020-21. Most of the petroleum products are used in transportation. Hence, a successful E20 programme can save the country $4 billion per annum, that is, around Rs 30,000 crore.
“Besides, ethanol is a less polluting fuel, and offers equivalent efficiency at lower cost than petrol. Availability of large arable land, rising production of foodgrains and sugarcane leading to surpluses, availability of technology to produce ethanol from plant based sources, and feasibility of making vehicles compliant to ethanol blended petrol make E20 not only a national imperative, but also an important strategic requirement,” the report reads.
It adds that different agencies of the government have made rapid moves to put in place a favourable regulatory and retail ecosystem for safe, and effective use of ethanol blended petrol and that Oil Marketing Companies have prepared their plans for phased rollout, and vehicle manufacturers have assured of making a similar plan once the intention of the government with timelines is publicly declared.

E20 Study & R&D Outside India

A project to study the suitability of 20% ethanol-gasoline blend (E20) with in-use vehicles was undertaken by Automotive Research Association of India (ARAI), Indian Institute of Petroleum (IIP) and Indian Oil Corporation (R&D) during 2014-15, with a funding from Department of Heavy Industry (DHI).
“Material compatibility tests revealed that the metals and metal coatings had no issue with E20. Elastomers had inferior performance with E20 compared to neat gasoline. Plastic PA66 had a drop in tensile strength after use with E20,” it read.
In the vehicle level studies, fuel economy decreased up to 6% (depending on the vehicle type) on an average basis. The test vehicles passed startability and drivability tests at hot and cold conditions with E0 and E20 test fuels. In all the cases, there was no severe malfunction or stall observed at any stage of vehicle operation. No abnormal wear of engine components or deposits or deterioration of engine oils were observed after the on-road mileage accumulation trials
Joint studies reported by the Massachusetts Institute of Technology (MIT) and Honda R&D indicate that the improvement in relative efficiency up to 20% can be achieved with E20 compared to normal gasoline, when the engine is properly tuned. Trials undertaken by Ford Motor Company concluded that the engine optimised for E20 fuel showed comparable volumetric fuel economy (mileage) and range (kilometres travelled in single fill) of normal gasoline with a CO2 reduction of 5%

Environmental Impact

Pointing out that vehicular emissions such as Carbon Monoxide (CO), Hydrocarbons (HC) and Oxides of Nitrogen (NOx) are currently under regulation in India, the report argued that use of ethanol blended gasoline decreases these emissions.
Here’s a summary of emission benefits with E10 and E20 fuels compared to neat gasoline:

E20 Petrol: What is Ethanol blending petrol & India's E20

“Higher reductions in Carbon Monoxide emissions were observed with E20 fuel – 50% lower in two-wheelers and 30% lower in four-wheelers. Hydrocarbon emissions are reduced by 20% with ethanol blends compared to normal gasoline. Nitrous Oxide emissions did not show a significant trend as it depended on the vehicle/engine type and engine operating conditions,” it read.
The unregulated carbonyl emissions, such as acetaldehyde emission were, however, higher with E10 and E20 compared to normal gasoline, due to the presence of hydroxyl groups in ethanol. However, these emissions were relatively minor (in few micrograms) compared to regulated emissions (which were in grams). Evaporative emission test results with E20 fuel were similar to E0.
“Overall, ethanol blending can help decrease emissions from both two-wheelers and four-wheelers,” it added.

Other Impact

Further, there are also various other impacts use of such fuel will have — primarily on the consumer, vehicle manufacturers and component manufacturers.
For the consumers, there are two and here’s what the report found:
■ Fuel Efficiency: While using E20 fuel, there will be a drop in fuel efficiency by nearly 6-7% for 4-wheelers designed for E0 and calibrated for E10; 3%-4% for 2-wheelers designed for E0 and calibrated for E10; 1-2% for 4-wheelers designed for E10 and calibrated for E20. However, with the modifications in engines (hardware and tuning), the loss in efficiency due to blended fuel can be reduced.
■ Startability: In the E20 project, the results indicated that the test vehicles passed startability and drivability tests at hot and cold conditions with E0 and E20 test fuel. In all the cases, there was no severe malfunction or stall observed at any stage of vehicle operation.
And, vehicle manufacturers need the following changes in production lines to produce compatible vehicles:
■ Engines and components will need to be tested and calibrated with E20 as fuel
■ Vendors need to be developed for the procurement of additional components compatible with E20 All the components required can be made available in the country.
■ No significant change in the assembly line is expected
For Component manufacturers:
■ There will be no major structural change in the components in migrating from E10 to E20
■ There will be changes in material of piston rings, piston heads, O-rings, seals, fuel pumps etc., all of which can be produced in the country

Fuel Ethanol Demand

This then brings us to the question of how much ethanol would India need and so on. Besides the EBP programme, ethanol finds competitive usage in the portable sector and the chemical & pharmaceutical industry. However, according to the expert committee report, demand for ethanol as a fuel is primarily driven by blending mandates, widespread availability of fuel, and compatible vehicles and fulfilment of other infrastructural requirements.

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How Will So Much Ethanol Be Produced?

According to the report: In 2017-18, installed capacity of molasses-based distilleries was around 278 crore litres. With a view to enhance ethanol production capacity in the country, the government in July, 2018 & March, 2019 notified two interest subvention schemes for molasses-based distilleries. Under the aforesaid scheme of DFPD, interest subvention at the rate of 6% per annum or 50% of rate of interest charged, whichever is lower on the loan sanctioned was borne by the central government for a period of 5 years.
“DFPD approved 368 projects for setting up of new distilleries / expansion of existing distilleries. Loans amounting to about Rs 3,600 crore have been sanctioned by banks to 70 sugar mills so far; 31 projects have been completed creating a capacity of 102 crore litres as a result,” it read. READ MORE