Explainer: What is Ethanol 100, or E100 fuel? And what is its retail price?

New Delhi: Union Minister for Petroleum and Natural Gas Hardeep Singh Puri launched Ethanol 100, or E100, fuel at Indian Oil retail outlet at Baba Kharak Singh Marg in New Delhi on Friday. This is a new fuel that India is now adding to its energy mix in a bid to reduce its dependence on costly crude oil imports. It is now being sold at 183 fuel retail outlets across five states — Maharashtra, Karnataka, Uttar Pradesh, New Delhi, and Tamil Nadu. So, what is Ethanol 100, or E100 fuel? Which vehicles can ply on the new fuel? And how much is it priced at?

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Ethanol 100 or E100 fuel composition

Contrary to popular belief, E100 fuel is not 100 percent ethanol. Previously, the specifications for E100 fuel in India mandated using 100 percent ethanol as fuel. However, due to safety concerns, the specifications were revised to mandate blending of ethanol with some amount of petrol. In accordance with the new specifications, E100 fuel includes 93-93.5 percent ethanol blended with 5 percent petrol and 1.5 percent co-solvent, which is a binder. A source who spoke to PSU Watch on the condition of anonymity said that under the new specifications, 100 percent ethanol cannot be dispensed to any car. “When using 100 percent ethanol as fuel, flames are not visible. If there is a fire, you will not know until you go inside the car. The addition of petrol gives flames a yellow colour. So, you can see that there is a fire. So, for safety reasons, the specifications have changed,” the source said.

How much is E100 priced at?

Currently, E100 is priced the same as petrol — Rs 94.72/litre in Delhi, Rs 104.21/litre in Maharashtra and Rs 100.75/litre in Chennai. However, with wider adoption of the fuel, E100 will definitely be cheaper than petrol or diesel since ethanol is cheaper. In addition, the government’s keenness to provide a fillip to biofuels which help in crude oil import substitution is also likely to make it competitive in comparison to the conventional fuels. Ethanol is made from agricultural feedstock, which also provides income to farmers, making them a stakeholder in decarbonisation of the economy.

Which vehicles can ply on E100?

E100 can be used as fuel in any flex fuel engine car. A flex fuel engine car is designed to run on a variety of fuels. It comes equipped with an internal combustion engine (ICE) which can run on petrol or ethanol or methanol, giving consumers choice at the point of sale of the fuel. Apart from a few modifications, flex fuel vehicles are similar to petrol-only cars.

Toyota Innova was India’s first automaker to launch a flex fuel engine car in August 2023. Maruti also followed up in its stead when it showcased a flex-fuel model of WagonR at Bharat Mobility show in New Delhi in February. The number of fuel retail outlets selling E100 fuel is expected to go up to 400 by April 15, said the minister at the launch event on Friday.

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