Ethanol Fuel: India’s Initiative for Clean and Sustainable Future

In 2023, global fuel ethanol production climbed to over 29.5 billion gallons, showing a positive approach toward the adoption of this clean-burning biofuel. Now as the world moves towards applying sustainable practices, the push for increased ethanol blending has gained momentum.

In 2023, the Prime Minister of India, Narendra Modi, announced the goal of achieving 20% ethanol blending in petrol (E20) by 2025-26. It is a major step forward in India’s efforts to promote the use of cleaner and more sustainable transportation fuels. But what is ethanol fuel?

In simple terms, Ethanol is a renewable alcohol fuel made from agricultural feedstocks like sugarcane and corn. Renewable fuels like ethanol offer many economic benefits in existing engines and infrastructure sectors, providing a quick and accessible solution for reducing emissions. In this e-guide, we will walk through the significance of ethanol fuel, its working, and the key advantages it offers in the modern world along with the best stocks of ethanol fuel. 

So let’s step right in.

What is Ethanol Fuel?

Ethanol is a renewable fuel extracted from plant materials, also called “biomass”. Generally, food grains, grass, sawdust, trees, agricultural and forestry residues, etc., are used to create ethanol fuel. But the easiest way to produce ethanol fuel is by using crops with high sugar content such as corn, sugarcane, barley, sorghum, sugar beets etc.

Earlier sugar companies would extract the juice from sugarcane and the cane was put aside as waste. But now, this cane is passed through distilleries to create ethanol. So, sugar and sugar companies are critical to the production of ethanol.

Ethanol has been used as a motor fuel since Henry Ford designed his 1908 Model T to operate on alcohol. The first production car to run entirely on ethanol was the Fiat 147, introduced in 1978 in Brazil.

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Why Ethanol is Used as Fuel?

There are several benefits of ethanol fuel and it is used as a fuel for various good reasons. Let dive into some of them:

Renewable and Sustainable

Ethanol is made from plant-based materials like sugarcane, corn, and other crops. This makes it a renewable fuel, unlike gasoline which comes from limited fossil fuels.

Reduced Greenhouse Gas Emissions

When ethanol is burned in engines and produces fewer harmful pollutants compared to regular gasoline. This helps improve air quality, especially in places like California that have strict emission standards.

Better Engine Performance

Ethanol boasts a higher octane rating than gasoline. This means it can be used to make engines run more efficiently and with more power.

Economic Benefits

The ethanol industry supports jobs in farming, manufacturing, and energy production, especially in rural communities. This overall can provide an additional market for crops while booming the business for farmers.

Compatibility with Existing Vehicles

Most regular gasoline today contains up to 10% ethanol (E10), which can be used in any standard gasoline vehicle. Flex-fuel vehicles can even run on higher ethanol blends like E85.

How to Make Ethanol Fuel

The most often asked question among curious minds is – what is ethanol fuel made from? Well, the answer lies in the times you’re searching for.

Traditionally ethanol fuel was made with sucrose mainly. However, with the advancement of technology and changing times, production houses commonly use formulations of sorbitol. 

The key to producing ethanol fuel is to ferment and distil various plant-based materials, “biomass” which is aforementioned. The process of making ethanol fuel typically includes the following steps:

• Feedstock Preparation: The plant-based feedstocks are harvested, collected, and transported to an ethanol production facility.
• Saccharification: Some feedstocks, like corn and sugarcane, require a process called saccharification or hydrolysis to break down the carbohydrates (cellulose and starch) into fermentable sugars.
• Fermentation: The sugars are then fermented by yeast, converting them into carbon dioxide and ethanol through a biological process. This results in a solution containing around 15% ethanol.
• Distillation: The ethanol is then isolated and purified through a process of distillation, where the ethanol is separated from the water and other byproducts.
• Dehydration: Depending on the intended use, the ethanol may undergo further dehydration to remove any remaining water, resulting in anhydrous (pure) ethanol.
• Denaturing (optional): In some cases, a small amount of denaturant, such as gasoline, is added to the ethanol to make it unfit for human consumption and suitable for use as a fuel.

This got too technical. Interestingly, the production of ethanol fuel has evolved over time. In the past, sugar companies would extract the juice from sugarcane and the leftover cane would go to waste. But now, this cane is passed through distilleries to create ethanol, making the process more efficient and sustainable.

Ethanol Fuel: India’s Push for Sustainable Energy Future

India’s ambitious push to increase ethanol blending in petrol has gained significant momentum in recent years. The government also rooted for the inception with multiple initiatives, campaigns, subsidies, and more. 

As per a report by the government Think Tank NITI Aayog, in India, the net import of petroleum was over ₹185 million tonnes, costing ₹4.1 lakh crore (around $55 billion) in 2020-21. 

The government estimates that a successful ethanol blending program can save the country up to ₹30,000 crore (around $4 billion) per year. By cutting the dependence on imported fossil fuels, ethanol blending has the potential to shape the modern world by strengthening India’s energy security and shielding the economy from global oil price fluctuations.

Akin to the name, ethanol is also proven as a cleaner-burning fuel compared to traditional gasoline. Studies show that grain-based ethanol can cut greenhouse gas emissions by 44-52%. In India, the use of E20 (20% ethanol-blended petrol) has led to a 50% reduction in carbon monoxide emissions from two-wheelers and a 30% reduction in four-wheelers.

Ethanol Fuel: The Flip Side of Coin

Technology can be boon or bane and the fine line between these two lies in the balance of usage. As this transition towards ethanol-blended fuels transformed the way to predict the modern world, it has also raised some critical concerns that need to be carefully addressed. 

Experts caution that the diversion of crops like sugarcane and corn towards ethanol production could lead to changes in land use, increased fertiliser use, and potential damage to ecosystems. This could sabotage the carbon-neutral claims of ethanol and potentially exacerbate food insecurity, as seen in the recent surge in rice prices that affected ethanol manufacturers.

As India continues to push for higher ethanol blending targets, it will be crucial to strike a balance between environmental sustainability as well as energy and food security.

Investing in research and development of advanced biofuel technologies, promoting the use of non-food feedstocks, and implementing robust sustainability frameworks will be key to ensuring that India’s ethanol revolution delivers on its promises of a cleaner and more self-reliant energy future.

However, the ethanol revolution in India is not without its challenges. Concerns have been raised about the impact of increased ethanol production on food security, as the diversion of crops like sugarcane and corn towards biofuel feedstock could lead to price volatility and potential shortages.

The sustainability of the ethanol supply chain also needs to be carefully evaluated, considering the water-intensive nature of sugarcane cultivation and the potential for land-use changes.

Ethanol Fuel in India: Prices, Production, and Key Players

Let’s discuss the ethanol fuel price and ethanol fuel manufacturers in India.

Ethanol Fuel Prices in India:

• The government has increased the price of ethanol extracted from sugarcane juice to ₹65.60 per litre, up from ₹63.45 per litre previously.
• The rate for ethanol from C-heavy molasses has been increased to ₹49.40 per litre from ₹46.66 per litre.
• The price of ethanol from B-heavy molasses has been raised to ₹60.73 per litre from ₹59.08 per litre.
• These revised ethanol prices are applicable for the supply year beginning December 2022.

Ethanol Fuel Manufacturer in India

• The top ethanol producers are the three major oil marketing companies – Indian Oil Corporation (IOC), Hindustan Petroleum Corporation Limited (HPCL), and Bharat Petroleum Corporation Limited (BPCL).
• Other prominent manufacturers include Dalmia Bharat Sugar, Shree Renuka Sugars, Balrampur Chini Mills, Triveni Engineering, Godavari Biorefineries, Simbhaoli Sugars, and Rana Sugars.

Here is a table of ethanol fuel manufacturing company’s stock you can invest into:

Top Ethanol Fuel Vehicles Companies

Here are the companies that make ethanol fuel cars in India and carry the potential to dominate the market:

Conclusion

In essence, ethanol fuel has been gaining a lot of attention around the world as a cleaner and more sustainable alternative to traditional gasoline. It carries quite compelling benefits with itself whether it’s usage in renewable resources, improving air quality, or sustainability alternatives of gasoline.

However, the transition to widespread ethanol use is not without its challenges such as potential impact on food prices and availability, crops, etc. To address these issues, governments, industries, and researchers are working together to find ways to make ethanol production and use more efficient and sustainable. With the right policies, investments only, it could play a crucial role in powering a greener future for all. Yet struggle lies in the intent and finding the balance in between the lines. 

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