India's Ethanol Production to Reach 9.90 Bn Litres by 2025

21 Aug 2024 CW Team

India is on track to significantly ramp up its ethanol production to 9.90 billion litres by 2025, leveraging grains and sugarcane as key feedstocks. This ambitious target forms part of the government?s broader strategy to enhance energy security, reduce carbon emissions, and decrease the country?s dependence on fossil fuels.

The increased production will primarily be driven by the use of surplus grains, including rice and maize, alongside sugarcane, which has traditionally been the dominant source of ethanol in India. This diversification is expected to stabilise the supply chain, ensuring that the country can meet its rising energy demands sustainably.

India?s ethanol production push is aligned with the government's Ethanol Blending Programme (EBP), which aims to achieve a 20% ethanol blend in petrol by 2025. This initiative is expected to have far-reaching benefits, including substantial savings on oil imports, improved air quality, and enhanced rural income through the increased demand for agricultural products.

The Ministry of Petroleum and Natural Gas has been actively supporting this growth by facilitating investments in ethanol production infrastructure and providing financial incentives to producers. This has encouraged both public and private sector companies to invest in ethanol distilleries, particularly in regions with abundant grain and sugarcane production.

Experts believe that the boost in ethanol production will also contribute to the government's goal of reducing greenhouse gas emissions, as ethanol is a cleaner-burning fuel compared to traditional petrol. Additionally, the shift towards using surplus grains for ethanol will help manage the country?s food surplus, creating a win-win situation for both the energy and agricultural sectors.

As India moves closer to its 2025 target, the country?s ethanol industry is poised to play a pivotal role in the nation's energy landscape, promoting sustainability and economic growth.

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