Considering the possibility of increasing demand for E20 fuel, the idea of ​​creating a ‘carryover stock’ of ethanol

The government is planning to create a carryover stock of ethanol for the next year in view of the likely increase in demand for E20 fuel in the country. A senior official of the Food Ministry has given this information. E20 fuel is a blend of 20 percent ethanol with petrol. The government aims to have 20 per cent blending of ethanol in petrol by 2025. Subodh Kumar, additional secretary in the food ministry, said, “The work on blending of ethanol is progressing well. Petroleum Marketing Companies (OMCs) have started distribution of E20 fuel in about 100 sales outlets across 31 cities in the country. We have started E20 fuel, if it goes well then the requirement will be more quantity.

He said that like sugar, the government is planning to “build a carryover stock of ethanol” with OMCs and distilleries for the ethanol year 2023-24 (December-November) and for this more sugarcane molasses will be used. The government has set a target of 12 percent ethanol blending in the current ethanol year 2022-23, while a target of 15 percent has been fixed for the next year. Around 1200 million liters of ethanol has been mixed with petrol till the end of February, the official said. We’re continuing to mix 12 percent.

The availability and production capacity of ethanol is sufficient to meet this year’s target. For the current year, about 50 lakh tonnes of sugar or cane molasses is estimated to be used for ethanol production, which is much higher than the figure of 36 lakh tonnes in 2021-22. The official said an additional 150 crore liters of ethanol would be required to meet the 15 per cent blending target next year and the government is encouraging sugar mills and distilleries to increase production capacity.

By February this year, the ethanol production capacity has gone up to 1,040 crore litres. The government is encouraging the creation of ethanol capacity under the interest subvention scheme. The official said the government has approved 243 projects and banks have already sanctioned loans worth Rs 20,334 crore and out of this Rs 11,093 crore has been disbursed. He said that last week the government reviewed upcoming projects and about 250-300 crore liters of ethanol capacity would come up in the next 9-10 months. The Center had started the Ethanol Blended Pilot Project in the year 2001 and the success of the ‘field’ trials eventually led to the launch of the Ethanol Blended Petrol (EBP) program in January, 2003. Last year, 10.02 percent ethanol was mixed in petrol in India.

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