Promoting biofuels: the case of ethanol blending initiative in India

In India, a gradual shift from fossil fuels to renewable fuels is considered necessary in view of growing energy demands of road transportation sector and also addressing the environmental concerns. The national biofuel policies of the country mandate increased use of ethanol blended petrol. However, the present main raw material supply source is closely linked to the cyclical nature of sugarcane harvests and its prices. Further, there are limits as at present ethanol is only derived through the molasses route. Second-generation ethanol production utilizing lingo-cellulose wastes from sugarcane (unutilized bagasse and sugarcane trash) and other agricultural wastes has the potential to bridge the supply gaps. The pilot-scale studies initiated in 2009 have shown that such a conversion is economically viable, and conversion cost of sugarcane bagasse has come down from ₹ 68 (US$ 0.97) to ₹ 16.5 (US$ 0.24) per litre during 2011–2016. An analysis of ethanol blend initiative in Indian context that highlights the present scenario, future projections, emerging trends, technologies, policies and institutional framework required for improved availability of ethanol for road the transport sector is presented. It is realized that a dynamic policy that rationalizes taxation framework and accommodates the agricultural shifts is actually needed.