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Why has Centre advanced its 20% ethanol blending target by five years
Context
The Union Cabinet recently advanced by five years its target for achieving 20% ethanol blending in petrol.
The amended National Biofuel Policy-2018 has now set the new target for 2025-26 instead of 2030, apart from allowing more feedstock for production of biofuels and export of biofuels in specific cases.
About
Biofuel policy:
- The National Biofuel Policy is aimed at reducing dependence on imports by encouraging fuel blending.
- With bioethanol, biodiesel and bio-CNG in focus, its key parts include:
- Ethanol Blending Programme (EPB),
- production of second generation ethanol (derived from forest and agricultural residues),
- increasing capacity for production of fuel additives,
- R&D in feedstock, which is the starting material for ethanol production, and
- financial incentives for achieving these goals
- Initially with 20% blending target for 2030, the central government had announced premium rates for ethanol produced from sugar syrup, cane juice as well as B heavy molasses.
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Molasses:
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Salient Features of National Policy on Biofuels 2018:
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Current blending status:
- As of 2022, the all India average blending as per the Ministry of Petroleum and Natural Gas stands at 9.90%.
- At present, the installed capacity that sugar mills have for ethanol production is 460 crore litres.
- It is expected that another 260 crore litres would be added to this once the 46 new distilleries become operational.
- These have already been approved under a new financial scheme where Centre provides 6% interest subvention for new projects.
Amendments recently made:
- The most important amendment has been advancing the 20% blending date by five years from Ethanol Supply Year (ESY) 2030 to 2025-26.
- Introduction of more feedstock for production of biofuels; production of biofuels under the ‘Make in India’ programme in Special Economic Zones, Export Oriented Units; and permission to allow export of biofuels in specific cases are some other changes.
- Apart from addition of new members to the NBCC, the Committee has now been given the permission to change the policy which it earlier lacked.
Is the new target achievable?
- In order to achieve 20% blending, India would require a consistent supply of 1,500 crores litres of ethanol annually.
- Niti Aayog has talked about managing 760 crore liters from sugar and 740 crore litres from grains to meet this ethanol requirement.
- Once 20 per cent blending is achieved, 60 lakh tonnes of sugar would have to be diverted annually to produce the fuel additive.
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Biofuels
Categories of biofuels Biofuels are generally classified into three categories. They are
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