India seeks new uses for surplus ethanol beyond E20 blending

India's ethanol production has surpassed the requirements of the current E20 blending programme, prompting the government to seek new applications for the surplus capacity. Tarun Kapoor, Advisor to the Prime Minister, stated at the India Sugar and Bio-Energy Manufacturers Association conference that production has exceeded initial expectations.

To utilize this surplus, the government is planning to move beyond the 20 percent ethanol blending limit (E20) by promoting flex-fuel vehicles. These vehicles are designed to handle higher concentrations of ethanol. The strategy includes expanding the outlet network at petrol pumps to provide pure ethanol and suitable additives. Additionally, authorities are exploring biofuel additives for diesel to reduce reliance on imported crude oil.

While the E20 programme is considered a success, researchers from ICRIER have suggested a more flexible policy. They recommend that while E20 remains the long-term goal, the government should allow blending to temporarily drop to E15 during periods of domestic supply shortages or high economic costs to protect food and feed markets.