Our previous E20 stories have talked about the merits and demerits of E20 fuel and ethanol-blended petrol for vehicle owners. Here, we look at why it is important for the Indian economy, how it affects the environment, and which other sectors could benefit from its production.

Is ethanol blending new, and is it only done in India?

Ethanol blending is not new and began in India back in 2003 in small 2 to 3 percent mixes. It has since risen, with a big push in 2010 worldwide; there are a few countries that use ethanol blends. Brazil is a leader in ethanol-blended fuel, having started in the mid-’70s, with E27 currently being standard and E100 also on offer. The US, too, has E10 as standard, with E15 and E85 blends also on sale.

Why is India blending ethanol with petrol? What are the advantages of using E20 fuel?  

India blends ethanol with petrol for economic and environmental benefits, and this fuel also offers some performance advantages.

Blending ethanol into petrol helps lower India’s crude oil imports.

India imports over 80 percent of its crude oil, which lowers our foreign exchange reserves and keeps us dependent on ever-changing geopolitical factors, made even more acute now with the rapidly changing political landscape involving the US and Russia.

The government says that blending of ethanol into petrol resulted in over Rs 24,300 crore of savings in foreign exchange in the ethanol supply year 2022-23. Moreover, money is now paid to Indian farmers and ethanol producers rather than being spent abroad, thus helping the Indian economy. With the Indian passenger car market also expected to grow – from 4 million-plus units last year to 7 million units in 2030, with EVs expected to account for around 30 percent – 5 million-odd passenger cars will still be internal-combustion driven, more than the entire market today. Thus, blending ethanol will help mitigate the extra burden on our crude oil consumption.

Ethanol blended petrol helps lower automotive emissions.

While NOx emissions can be higher, ethanol, which is a pure single-compound alcohol, burns cleaner with respect to carbon oxides and total hydrocarbons (THC) emissions. The cleaner burning is on account of the oxygen content within ethanol (absent in petrol) and also due to the fact that ethanol has fewer carbon atoms than petrol, which is a blend of hydrocarbons.

As ethanol is a biofuel produced from growing crops (that absorb carbon), it is considered a (near) net-zero carbon fuel. Furthermore, with a higher octane number (around 109 RON), ethanol can help engines run a higher compression ratio and advanced ignition timings, which can help achieve cleaner and complete burning, thus indirectly reducing emissions.

Why is sugarcane being used to produce ethanol?

India achieved a surplus in sugar production in the year 2011, and with current petrol consumption estimates and a 20 percent ethanol blend, the country will require 1,016 crore litres of ethanol this year, lower than its projected ethanol supply of 1,500 crore litres. Thus, using sugarcane to produce ethanol for fuel use can easily be explored. Moreover, India is also looking to ramp up production of second-generation (2G) ethanol made from crop waste, maize husk and plant stubble, and other such sources, and while yields are generally lower, 2G helps by diverting what would be waste that’s very often burned, releasing more carbon into the atmosphere.

Will the price of fuel come down with ethanol blends?

Currently, ethanol blending is undertaken to lower India’s oil imports and save the country’s foreign exchange reserves. Thus, the government is unlikely to lower the cost of fuel at the pump. Moreover, the government claims that sourcing ethanol is more expensive than crude oil. However, various reports also state otherwise, indicating that the claim isn’t as straightforward. India’s fuel pricing is a complicated structure of crude oil import costs, the value of the rupee, loans, transportation and distilling, distribution and retailer margins, as well as central and state taxes that vary for crude and ethanol too.  

In any case, if international models are to be used as a yardstick, the retail prices of petrol could likely come down with higher-percentage blends. In both Brazil and the US, higher percentages of ethanol blends cost less than lower blends.  

Will the government increase the blend of ethanol in petrol?

Yes, having achieved the E20 target five years ahead of schedule, the government is exploring options of increasing the ethanol blend to 30 percent in the next five years. The Ministry of Petroleum and Natural Gas has given a go-ahead, and the government is evaluating whether to implement this in a phased or a unified manner.

An E20 engine can manage E30 with calibration changes.

Any engine designed to run on E20 is already material compliant up to E30, but it will require tuning changes to manage the fuel. This is quite complicated, though, as other parameters like emission norms also need to be factored in.

Significant hardware changes are required above E30.

Going above E30 requires further reengineering, and a car is generally considered to be a flex-fuel vehicle; that is, it can handle any percentage of petrol-ethanol mix or even up to 100 percent ethanol. Going above E30 requires ethanol content sensors for real-time monitoring of ethanol concentration; fuel rail and injector heaters can also be required for cold starts, as higher percentages of ethanol can lead to cold-starting issues. Even at E20, sub-zero temperatures can cause some cold-starting problems.

With inputs from Sergius Barretto

Also see:

Will E20 fuel damage your car? Key risks and compatibility explained

E20 petrol in India: What is it and why it’s being rolled out