Forget alcohol distillation. India’s distillers are licking their lips in anticipation as the Middle East conflict leaves many ifs and buts all around. On their menu: raising the ethanol percentage in petrol from 20 per cent to 30 per cent, introducing hybrid vehicles which can run on 100 per cent ethanol, and even replacing LPG-based gas cooking with ethanol burner cooking.
As they meet in New Delhi on Tuesday for their national conclave, the distillers are set to demand further action on the government’s part to push the ethanol-as-a-fuel story forward, especially considering the impact the Iran war is having on India.
Already, even before the clouds in that region, India had sped up its ethanol blending targets, mandating that all petrol sold in the country from April 1st will have 20 per cent ethanol in it (called E20).
“This decision is a win for industry, farmers, consumers and the nation,” said Vijendra Singh, president, All India Distillers Association (AIDA), “It reduces dependence on imported crude oil, enhances price stability in the long term, creates employment across the value chain, and accelerates India’s transition towards cleaner and more sustainable mobility.”
However, now the industry is pushing for more. This Sunday, the sector asked Union Minister of Road Transport and Highways Nitin Gadkari for more, including raising the ethanol blending percentage from the presently mandated (from next week onward) 20 per cent to 30 per cent. But there’s more.
AIDA’s demands in their letter to Gadkari also included the introduction of flex vehicles, which can run 100 per cent ethanol, usage of ethanol for domestic and industrial cooking by introducing the ethanol burners and exploring ethanol blending in diesel (also).
Hybrid vehicles which can run fully on ethanol are in use in Brazil, while in India, hybrids generally alternate between petrol and electric batteries or alternates like CNG or LPG.
But more path-breaking, especially considering the LPG cylinder shortage, which freaked out Indian households last fortnight, would be AIDA’s suggestion that India also explore alternative domestic usage for surplus ethanol. It suggests the introduction and promotion of ethanol-based cook stoves as an additional ‘clean cooking option’ for households in small towns and villages, as well as commercial establishments (like restaurants, which were rudely jolted when the government invoked essential commodities rules to restrict the sale of LPG cylinders to commercial entities due to the shortage).
“Such an initiative would align with national priorities of clean energy
access, reduced indoor air pollution, and diversification of fuel sources,” wrote Bharati Balaji, deputy director general of AIDA, in their note to Minister Gadkari.
However, it is not so simple. There are already concerns about how increasing the percentage of ethanol in petrol may harm the vehicle’s engine performance in the long run. The government, on its part, has mandated that the 20 per cent ethanol blending in petrol have a minimum RON or ‘research octane number’ of 95, which is supposed to help prevent engines ‘knocking’ and improve the stability under higher compression ratios in new vehicles. The previous standard was the 91 octane standard.
Added Singh of AIDA: “A higher octane rating improves combustion efficiency and ensures better engine performance in compatible vehicles. It reduces engine knocking in vehicles designed for E20 fuel, thereby supporting smoother operation and improved driving experience. Ethanol-blended fuel also burns cleaner, contributing to lower carbon monoxide and greenhouse gas emissions, and ultimately better air quality.”
Ethanol is generally produced from fermentation of sugar-based feedstocks (sugarcane, molasses, juice, etc.) and also from maize and broken rice. They are fermented with yeast to create alcohol, and then dehydrated and distilled to produce pure ethanol, which is then blended with petrol. India has always been forward-looking when it comes to ethanol, especially considering how sugarcane farmers are a big and influential lobby in certain parts of the country, especially Maharashtra. In fact, in 2018, India even tested a biofuel-powered flight way back in 2018, with SpiceJet operating a flight from Dehradun to Delhi using 75 per cent regular ATF fuel and 25 per cent biojet fuel derived from Jatropha plant seeds.
However, worries also abound about sugarcane prices and whether the sudden surge in demand for sugarcane for ethanol production will affect the present market. Tarun Sawhney, vice chairman and managing director, Triveni Engineering & Industries Ltd, in a statement before this year’s budget, had called on the government to look into it, arguing, “MSP for sugar has remained unchanged since 2019. Sugar diversion for ethanol production has been restricted to 34 lakh tonnes in the first tender cycle, with ethanol allocation reaching only 290 crore litres this year—significantly below the expected 450 crore litres. This shortfall has created a supply imbalance. Ethanol production costs have increased — despite these rising input costs, ethanol prices remain unchanged, undermining distillery viability.”