Ethanol blending saved Rs 9,580 cr in forex; E20 fuel cut CO emissions by 50%: Minister

• A study on E20 (20 percent ethanol blending in petrol) showed that carbon monoxide emissions decreased by about 50 percent in two wheelers
• India will have to increase ethanol production to estimated 1,500 crore litres per annum to meet the requirement of 20 percent ethanol blending

New Delhi: Minister of State (MoS) for Petroleum and Natural Gas Rameswar Teli has said on Monday that the ethanol blending programme has led to savings of Rs 9,580 crore in forex in ESY 2020-21 so far. He also quoted a study that has showed that ethanol blended fuel cuts Carbon Monoxide (CO) emissions by 50 percent in comparison to neat petrol. In a written response to a question raised in the Rajya Sabha on the first day of Winter Session of Parliament, the minister said, "The foreign exchange impact is a factor of average Free on Board (FoB) rate of petrol and USD/INR exchange rate. For the ongoing ESY 2020-21 during the period 01st December, 2020 to 14th November, 2021, the notional foreign exchange impact is estimated to be around Rs 9,580 crores."

Quoting a joint study conducted by Indian Oil Corporation (IOC), along with Automotive Research Association of India (ARAI) and Society of Indian Automobile Manufacturers (SIAM) to access the effect of E10 (10 percent ethanol blending in petrol) on existing vehicles, Teli said, "… the findings indicated that the hydrocarbon and carbon monoxide emissions decreased by about 20 percent with E10 compared to neat petrol on both two wheelers and passenger cars. Subsequently, another project on E20 (20 percent ethanol blending in petrol) showed that carbon monoxide emissions decreased by about 50 percent in two wheelers and about 30 percent in four wheelers by using E20 compared to neat petrol."

'India will have to double ethanol distillation capacity to reach 20% blending'

The minister told the Upper House of Parliament that the Department of Food and Public Distribution (DFPD) has informed that at present, the alcohol/ethanol distillation capacity in the country is around 722 crore litres per annum. "… which has to be increased to estimated 1,500 crore litres per annum to meet the requirement of 20 percent ethanol blending under the EBP Programme and requirement of other sectors," said the Minister of State for Petroleum.

Under the Ethanol Blended Petrol (EBP) Programme, public sector Oil Marketing Companies (OMCs) are selling E10 (10 percent ethanol-blended petrol) as per availability. For the ongoing Ethanol Supply Year (ESY) 2020-21, OMCs have sold 3,672.46 crore litres of ethanol blended petrol during the period December 1, 2020 to November 14. 

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