Amendments in National Policy on Biofuels 2018

Syllabus: General Studies Paper 2

The Union Cabinet has approved amendments to the National Policy on Biofuels 2018.

As per the amendments:

The deadline for fuel firms to raise the ratio of ethanol in gasoline to 20% will be 2025.

From April 1, 2023, the policy of introducing 20% ethanol will take effect.

Benefits of 20% ethanol blending (According to NITI Aayog report):

• Saving ₹30,000 crore of foreign exchange per year.
• Increased energy security.
• Lowered carbon emissions.
• Better air quality.
• Self-reliance.
• Better use of damaged foodgrains.
• Increased farmers’ incomes and greater investment opportunities.

Ethanol blending -. India’s journey so far:

As of March 13, 2022, India had attained a 9.45 percent ethanol blend. By the conclusion of the fiscal year 2022, this is expected to touch 10%.

Challenges:

• A 10% blend does not necessitate major engine changes, but a 20% blend may necessitate certain changes and may even raise vehicle prices.
• More blending might imply more land being diverted for water-intensive crops like sugarcane, which the government presently subsidises.
• An ethanol demand of 10.16 billion litres by 2025: This will require six million tonnes of sugar and 16.5 million tonnes of grains per annum by 2025.
• The increased allocation of land also puts into question the actual reduction in emissions that blending ethanol with petrol brings about.

What is ethanol?

• It is the organic compound Ethyl Alcohol which is produced from biomass. It is also an ingredient in alcoholic beverages.
• It has a higher octane number than gasoline, hence improves the petrol octane number.
• Since ethanol contains oxygen, it is supposed to help in complete combustion of fuel, resulting in lower emissions.