Syllabus
GS Paper 3 – Infrastructure: Energy, Ports, Roads, Airports, Railways etc., Awareness in the fields of IT, Space, Computers, Robotics, Nano-technology, Bio-technology, Conservation, Environmental Pollution and Degradation, Environmental Impact Assessment
Context
As over 100 nations committed to tripling the worldwide renewable energy capacity by 2030 during COP28 in Dubai, India finds itself navigating a delicate balance in meeting its ethanol blending target.
Source
The Hindu | Editorial dated 20- December 2023
What is Ethanol?
- Ethanol Definition:
- Ethanol is a key biofuel produced through the fermentation of sugars by yeasts or via petrochemical methods like ethylene hydration.
- It is essentially 99.9% pure alcohol suitable for blending with petrol.
- Ethanol Blending Programme (EBP):
- The EBP is designed to:
- Reduce the nation’s reliance on crude oil imports.
- Decrease carbon emissions.
- Enhance farmers’ incomes.
- The EBP is designed to:
- Blending Target:
- The Indian government has expedited the goal for 20% ethanol blending in petrol (E20) to 2025, moving it up from the initial target of 2030.
- Production Sources:
- While primarily derived from extracting sugar from sugarcane, alternative organic sources like food grains can also be utilized for ethanol production.
The Status of India
- Energy Consumption in India:
- India ranks as the world’s 3rd largest energy-consuming nation, and a significant portion of its energy needs are fulfilled through oil imports.
- Growth in Ethanol Production Capacity:
- Over the past 8 years, India has witnessed a remarkable increase in ethanol production capacity, surging more than 2.5 times.
- The number of distilleries in the country has also seen a substantial rise, growing by 66%.
- Primary Source of Ethanol in India:
- The majority of ethanol production in India is derived from B Heavy Molasses.
- Progress in Ethanol Blending:
- India has made significant strides in ethanol blending with petrol, doubling the percentage to 10% over the past two years.
- Future Blending Targets:
- The national target is set to achieve a 25% ethanol blending with petrol by 2025.
Sugarcane vs. Corn Ethanol Production:
- In sugarcane, ethanol is produced from molasses (C-heavy/B-heavy), minimally impacting sugar output.
- Corn-based ethanol directly reduces its use as food or livestock feed, linking food prices to crude oil prices.
- Sugarcane is the preferred choice in tropical countries like Brazil and India due to higher yields.
- While using sugarcane has environmental and hunger-related impacts, appropriate land-use policies can regulate these effects.
Advantages of Ethanol Production
- Enhanced Energy Security:
- Mitigates the import bill, saving around Rs 30,000 crore annually in foreign exchange.
- Contributes to reduced carbon emissions, aligning with environmental sustainability goals.
- Income Boost for Farmers:
- Diversification of ethanol feedstock (rice, maize, jowar, etc.) leads to increased income for farmers.
- Aligns with the recommendations of the Ashok Dalwai committee to double farmers’ income through farm diversification.
- Reduced Petroleum Dependency:
- By blending ethanol with gasoline, it lowers the amount of petrol needed for vehicle operation, diminishing reliance on imported, expensive, and environmentally harmful petroleum.
- Presently, India imports 85% of its oil requirements.
- Cost Savings:
- India’s net petroleum import in 2020-21 was 185 million tonnes, costing USD 551 billion.
- With the majority of petroleum products utilized in transportation, the E20 program has the potential to save the country USD 4 billion annually.
- Environmental Benefits:
- Ethanol serves as a cleaner fuel, providing comparable efficiency to petrol but at a reduced cost.
- Factors such as extensive arable land, increasing production of food grains and sugarcane leading to surpluses, available technology for ethanol production from plant-based sources, and the feasibility of adapting vehicles to ethanol blended petrol (EBP) support the roadmap for E20.
- Strategic Importance:
- The E20 target is viewed not just as a national imperative but also as a crucial strategic requirement.
- Utilization of Valuable By-Products:
- Molasses-based distilleries yield approximately 28% of potash, usable as fertilizer.
- By-products can be sold as animal feed, adding economic value.
- Job Creation Through Technology Adoption:
- Integration of new technology in ethanol production facilitates additional employment opportunities.
- Sustainability Measures:
- Ethanol production from damaged food grains and vegetable waste ensures sustainability without compromising food security.
The NITI Aayog’s Roadmap
- The NITI Aayog released a report on ‘Roadmap for Ethanol Blending in India 2020-25’ in June 2021.
- Major goals proposed by the report:
- Increase pan-India ethanol production capacity from 700 to 1500 crore liters.
- Phased rollout of E10 fuel by April 2022.
- Phased rollout of E20 starting from April 2023, with the goal of achieving availability by April 2025.
- Initiate the rollout of E20 material-compliant and E10 engine-tuned vehicles from April 2023.
- Begin production of E20-tuned engine vehicles from April 2025.
- Encourage the cultivation of water-sparing crops, such as maize, for ethanol production.
- Promote the use of technology for ethanol production from non-food feedstock.
The Major Government Interventions
- GST Reduction: Goods & Service Tax (GST) on ethanol for the EBP Program has been reduced from 18% to 5%.
- Interest Subvention Scheme: Implemented to enhance ethanol production capacity and facilitate year-round production.
- Roadmap 2020-25: Niti Aayog’s released roadmap recommends measures for ethanol blending, aligning with targets set in the EBP Program.
- Ethanol Procurement: The government permits ethanol procurement from sugar cane, surplus rice, and maize through the Food Corporation of India.
- EBP Program: Launched in 2003, the Ethanol Blended Petrol (EBP) Program aims to boost renewable fuel usage, starting with 5% blending. The target is 10% by 2022 and 20% (E20) by 2025-26.
- National Biofuels Policy: Introduced in 2018, the policy sets a target of 5% biodiesel blending in diesel by 2030.
- Differential Pricing: The government has established higher prices for ethanol produced from B-heavy molasses and whole sugarcane syrup, compensating mills for reduced or nil sugar production.
Major Challenges
- Ethanol Blending Challenge:
- India faces a delicate situation in achieving its ethanol blending target.
- The 20% ethanol blending target for 2025 encounters obstacles due to:
- Low sugar stocks in 2022-23.
- Anticipated shortfall in sugarcane production this year.
- Efficiency Considerations:
- Notes the comparative energy efficiency challenges, where some biofuels, like ethanol, may provide less energy compared to fossil fuels like gasoline.
- Highlights instances such as 1 gallon of ethanol yielding less energy than 1 gallon of gasoline.
- National Biofuel Policy Shift:
- The revised ethanol blending target emphasizes food-based feedstocks, marking a departure from the 2018 National Policy on Biofuels.
- The prior policy prioritized grasses, algae, cellulosic materials, and residues from farming and forestry.
- Concerns of Hunger Risk:
- Raises concerns about the potential diversion of food grains intended for impoverished communities to distilleries at reduced prices.
- Competition for subsidized food grains between distilleries and public distribution systems may heighten the risk of hunger, particularly in rural areas.
- Cost Implications:
- Acknowledges the influence of biofuel production on land use, impacting the cost dynamics of both biofuels and food crops.
- Challenges in Water Usage:
- Points to the extensive water requirements for biofuel crop irrigation and manufacturing, posing potential strains on local and regional water resources.
The Way forward
- Emphasize Ethanol from Wastes: Shift focus to ethanol production from wastes to position India as a global leader in sustainable biofuels and mitigate climate and air quality issues.
- Address Water Crisis: Ensure the new ethanol policy avoids promoting water-intensive crops to prevent exacerbating India’s existing water crisis.
- Prioritize Food Production: Given challenges like depleting groundwater, arable land constraints, and erratic monsoons, prioritize food production over crops for fuel.
- Streamline Regulatory Approvals: Facilitate faster regulatory clearances for ethanol production units through a single-window clearance system.
- Promote Ethanol-Compatible Vehicles: Incentivize the production of higher ethanol-compatible vehicles to support the ethanol blending program and reduce fossil fuel usage.
- Reevaluate EBP Target: Consider revisiting the Ethanol Blended Petrol (EBP) target, staggering it if necessary, to address contradictions and challenges in implementation.
- Invest in Public Infrastructure: Direct more investment towards public infrastructure and urban design to manage fuel demand for automobiles and promote renewables like solar power.
- Explore Alternative Mechanisms: Evaluate alternative mechanisms such as increased adoption of electric vehicles and additional renewable generation capacity to reduce emissions.
- Diversify Feedstock: Consider diversifying ethanol feedstock to grains, which yield higher ethanol quantities compared to molasses, contributing to better overall production.
- Augment Ethanol Production Capacity: Ensure a uniform availability of ethanol blends throughout the country by enhancing ethanol production capacity.
- Develop Infrastructure: Prepare Oil Marketing Companies for the anticipated demand by developing infrastructure for ethanol storage, handling, blending, and dispensing.
Practice Question
Evaluate the potential of ethanol production from wastes as a strategy for India to emerge as a global leader in sustainable biofuels, considering its environmental and climate benefits.