Mains Daily Question
Dec. 20, 2023
Q.1) Ethanol Blending will lead to many benefits. However, there are several challenges which need to be resolved first. Discuss. (10M/150W)
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Approach to the answer Understanding and structuring the answer: The question has 2 main parts – 1) Benefits, and 2) Issues and Challenges Introduction: Type 1: Give a description of Ethanol Blending and write the target set by the Government of India. Type 2: Give a recent context about ethanol blending by quoting some report Body: Heading 1: Benefits of Ethanol Blending Heading 2: Issues and Challenges in Ethanol Blending Conclusion: Give a forward looking conclusion and write how ethanol blending is important and other suitable measures to reduce oil imports and prevent pollution. |
Answer:
Ethanol Blending refers to mixing of ethyl alcohol to petroleum products like petrol and diesel. In 2022 India has achieved the target of 10% ethanol blending target under the ethanol blending programme.
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Benefits of Ethanol Blending |
- Self-Reliance: India is highly dependent on other countries to fulfill its energy demand and ethanol blending will reduce its oil import bill.
○ For example, India imports more than 85% of its crude oil requirements. Ethanol Blending can further the cause of self-reliance in the energy sector by reducing imports.
- Reduction in Pollution: Ethanol blending leads to complete combustion of fuel and reduces carbon monoxide emissions significantly.
○ For example, According to the NITI Aayog report titled ‘Roadmap for Ethanol blending in India 2020-25’, carbon monoxide emissions were 50% lower in two-wheelers and 30% lower in four-wheelers after ethanol blending.
- Saving of FOREX: Ethanol Blending will reduce crude oil imports which will reduce the current account deficit.
○ For example, Ethanol Blending can save annually around Rs 30,000 Crore. (NITI Aayog)
- Farmer’s Income: The alternative use-case of sugarcane will help the farmers realize more income on their produce.
○ For example, A total of ₹1 lakh crore worth of biofuel will be purchased every year by oil marketing firms in the future for blending. This money will be ploughed back to the rural economy.
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Issues and Challenges in Ethanol Blending |
- Food Security: Ethanol Production from food crops like wheat and rice can come in direct conflict with food security.
- Raw Material: Availability of sufficient raw material in a sustainable manner is required.
○ For example, Sugarcane is a water intensive crop, so promoting its cultivation may deplete our groundwater. Research on non-sugarcane derived ethanol needs to be undertaken.
- Supply Chain Management: Sugarcane is locally available in only some parts of India like Maharashtra, UP and Kerala; thus, the supply chain needs to be strengthened to accomplish the interstate movement of ethanol.
- Higher compliance cost for companies: There is a requirement to upgrade the vehicle engines to make it compliant with Ethanol blending.
○ For example, as per industry estimates it will result in a 5% rise in automobile prices.
- Price Volatility: Sugarcane prices are subject to high volatility. This can lead to high risk in ethanol production.
○ For example, In 2019, the sugarcane prices in India witnessed significant volatility due to various factors like droughts and floods. Additionally, the government increased the Fair and Remunerative prices (FRP) for sugarcane by around 7%.
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Additional information: Government initiatives for promoting ethanol production ● The Ethanol blending programme aims to reach the target of 20% blending of petrol by 2030. ● The Administered pricing mechanism has been re-introduced. Under the APM, the government sets a fixed price for ethanol that is used for blending with petrol. The APM is intended to ensure that ethanol producers receive a fair price for their product, and to encourage the use of ethanol as a renewable fuel. ● The Pradhan Mantri JI-VAN Yojana was launched in 2019 to promote the use of biofuels and encourage the production of advanced biofuels, including ethanol from agricultural residues, municipal solid waste, and other waste materials. ● The National Biofuels Policy was launched in 2018 to promote the production and use of biofuels, including ethanol. The policy aims to promote sustainable biofuels production, reduce dependence on imported crude oil, and create new job opportunities in the biofuels sector. |
Ethanol Blending has several economic and environmental benefits. Going ahead, there is a need to ensure uniform availability of ethanol blends in the country by allowing more variety of feedstocks and invest in R&D for developing better methods for ethanol generation (like ethanol production from algae).
