PM rolls out E20 fuel in 15 cities at India Energy Week (IEW).

• E20 fuel, a blend of 20% ethanol and 80% petrol, was launched 2 year ahead of target and will be rolled out across country in a phased manner. IEW, under Ministry of Petroleum & Natural Gas, aims to showcase India’s rising prowess as an energy transition powerhouse.

What is Ethanol Blended Petrol?

• Ethanol (also called ethyl alcohol, or alcohol) is a biofuel with chemical formula C2H5OH. It is naturally made by the fermentation of sugar. In India, it is largely derived while extracting sugar from sugarcane. However, other organic matter like surplus rice with Food Corporation of India and Maize is also allowed.
• The government has launched the Ethanol Blended Petrol (EBP) Programme to mix this biofuel with petrol to reduce the consumption of fossil fuel.
• Government has been implementing Ethanol Blended Petrol Programme wherein OMCs sell petrol blended with ethanol up to 10%.
  • Target of achieving average 10% blending was achieved in June, 2022 and target of 20% ethanol blending was advanced to 2025 (from 2030).

Benefits of blending Ethanol in Petrol

• E20 fuel has been shown to result in larger reductions in carbon monoxide emissions, which are 50% lower in two-wheelers and 30% lower in four-wheelers, because ethanol promotes full combustion. Research points a 20% reduction in hydrocarbon emissions, but there is no discernible trend in nitrous oxide emissions because it depended on the type of vehicle/engine and the circumstances under which it was operating.
• In last eight years, the 10 per cent ethanol blending has saved India up to ₹53,894 crore in foreign exchange outgo while also benefiting farmers, who earned ₹49,078 crore. It resulted in a reduction of 318 lakh tonnes of CO2 emissions, PTI reported.

Significance

• Will help to contain vehicular pollution- According to 2021 data published by NITI Aayog in report titled ‘Roadmap for Ethanol blending in India 2020-25’, 98 per cent of the fuel requirement in the road transportation sector is currently met by fossil fuels and while only 2% by biofuels.
• Reports states that of the total oil requirement in the transportation sector, 85 percent need to be imported. Thus it can help in achieving energy security and lowering crude oil import bill
• Apart from these, the alternative use-case of sugarcane will help the farmers realise more income on their produce. This will enable local enterprises and farmers to participate in energy economy.
• The surplus and damaged rice procured by the Food Corporation of India can be used to produce ethanol. Thus reducing post production losses and wastage.

Challenges

• Availability of sufficient raw material sustainably is required. Sugarcane is a water intensive crop, so promoting its cultivation may deplete our groundwater. Research on non-sugarcane derived ethanol needs to be undertaken.
• Sugarcane is locally available in only some parts of India, thus the supply chain needs to be strengthened to accomplish the Interstate movement of ethanol.
• There is a need for the development of infrastructure to extract ethanol. It requires ethanol compliant dispensing units and additional storage tanks for ethanol at marketing terminals / depots.
• There is a requirement of upgrading the vehicle engines to make it compliant with Ethanol blending. Although no significant change is required for 10% mixing, engines and components will need to be tested and calibrated with E20 as fuel.