Friday, May 13, 2022

India achieves 10.65% ethanol blending, targets 12% by next year

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  • OMCs have received 131.69 crore litres ethanol, enabling 10.65 percent blending for the month of March (till 27.03.2022) and cumulative blending of 9.60 percent
  • For the ethanol supply year 2021-22, the Oil Marketing Companies (OMCs) have floated a tender for 459 crore litres of ethanol 

New Delhi: State-run Oil Marketing Companies (OMCs) have achieved ethanol blending rate of 10.65 percent in March and are targeting 12 percent blending by Ethanol Supply Year (December-November) 2022-23. “OMCs have received 131.69 crore litres ethanol, enabling 10.65 percent blending for the month of March (till 27.03.2022) and cumulative blending of 9.60 percent,” according to the Ministry of Petroleum and Natural Gas. In July 2021, Minister of State (MoS) for Petroleum and Natural Gas Rameswar Teli had said that ethanol blending of fuel in India was at 7.93 percent. 

“For the ethanol supply year 2021-22, the Oil Marketing Companies (OMCs) have floated a tender for 459 crore litres of ethanol against which LoIs for 416.33 crore litres of Ethanol have been issued upto 27.03.2022,” said the ministry.

Indian Oil’s current ethanol blending rate at 9.77%

The current ethanol blending rate at Indian Oil Corporation is 9.77 percent and India’s largest oil retailer is targeting 11 percent blending in 2023, said the PSU in an official response. Out of a contract quantity of 410 crore litres, Indian Oil has received 158 crore litres of ethanol, as on April 17, in the current Ethanol Supply Year (December 2021-November 2022).  

For Bharat Petroleum Corporation Ltd (BPCL), the figure stood at 8 percent in ESY 2020-21 and the oil PSU is targeting 10 percent ethanol blending for ESY 21-22. “In the current ESY 21-22, we have targeted 10 percent blending for which the estimated ethanol requirement is 459 crore litres,” said BPCL.

Background

India is targeting 20 percent ethanol blending by 2024-25, which will make India the country with largest ethanol blending in absolute terms. In order to reduce its dependence on crude oil imports, India is following a multi-pronged strategy under which it is looking to increase the usage of bio-fuels, ethanol blending and increase the share of natural gas in the economy to 15 percent by 2030. In order to increase the availability of ethanol, the government has introduced an interest subvention scheme for ethanol distilleries and has also allowed production of ethanol from maize and rice available with the Food Corporation of India (FCI). 

India’s current ethanol distillation capacity stands at around 722 crore litres per annum. It will have to be increased to 1,500 crore litres per annum to meet the requirement of 20 percent ethanol blending. 

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