Challenges in Ethanol Blended Petrol
- We know that ethanol is produced from agricultural produce such as sugarcane, rice, maize, etc., but at a time when malnutrition and hunger are widespread in the country, it may not be a wise decision to use food grains to produce ethanol instead of using them for human consumption. Thus fighting hunger is a major challenge before ethanol production can be started on a large scale.
- The ethanol manufacturing units in the country cannot meet the country’s ethanol demand. So it will be more challenging to meet the ethanol demand for blending with fuel. Thus the ethanol manufacturing units need to upgrade and ramp up their production.
- The prices of sugarcane and other food grains fixed by the government are uncertain, so it may not be feasible for the farmers to plant these crops if they are not paid well. This may also increase fuel prices if the raw materials prices are set high.
- Transporting ethanol is a risky and costly task as ethanol is not produced all over the country. It needs to be transported safely as it is highly flammable, and there is a fear of robbery along the way. Thus transportation costs are a considerable overhead in the ethanol blending program.
- Currently, the ethanol manufacturing units are under the “Red Category” due to the pollution they cause, so they need clearance under the Air and Water Acts, which is time-consuming due to the paperwork involved.
Ethanol Blended Petrol (EBP) Program
Ethanol Blended Petrol Programme (EBP) is an initiative by the Government of India (GoI) under the National Policy on Biofuels. It was launched in the year 2003. It aims to promote renewable energy, reduce the import of fuels from other countries, and promote the use of environment-friendly fuels.
The government aims to mix 5% ethanol in fuel by 2020, which will increase by 20% (E20) by 2030. Ethanol needed to be blended will be sourced from domestic sources and at prices fixed by the government. This initiative will impact various sectors, including agriculture, environment, energy, etc. It will also help the farmers to earn extra income as the ethanol will be produced as a side product from Sugarcane, Maize, Bajra, Fruit and Vegetable wastes, etc.