Ethanol blending dilemma: India’s flex-fuel plan

Madhurjya Saikia

(madhurjyatu15@gmail.com)

India’s road transport sector is a major part of the economy and the biggest user of oil, using 51% of the country’s total in 2024. Around 87% of its energy comes from petrol and diesel, while cleaner options like natural gas, electricity, and biofuels make up only a small share. The sector produces about 12% of India’s total carbon emissions, and emissions per person from road transport have increased 2.5 times since 2000. In 2022, India had 326.3 million registered vehicles, mostly with internal combustion engines (ICEs). If cleaner fuels are not adopted, transport emissions could rise by 60% by 2050. So, switching to low-carbon fuels like biofuels is the key to cutting emissions and fighting climate change.

Ethanol blending involves mixing ethanol (ethyl alcohol) with petrol to reduce dependency on imported crude oil and cut fuel costs. Since India imports 80% of its crude oil, costing around $65 billion annually, ethanol blending can significantly reduce this outflow. Ethanol is domestically produced from fermented agricultural waste, broken rice, maize, sugarcane, and even crop residues. This not only reduces pollution and greenhouse gases but also creates rural employment. However, existing petrol/diesel engines are not compatible with high ethanol blends, so India is pushing for flex-fuel engines that can run on multiple fuel types. To support ethanol production, the government is encouraging the setup of ethanol plants and balancing sugarcane use between ethanol and sugar production. Hence, sugar exports have been temporarily banned to avoid domestic shortages and inflation, even though India currently has a surplus of 8 million tonnes of sugar in buffer stock. The potential benefits are for farmers, employment generation, reduced fuel import bills, and a cleaner environment.

India’s ethanol blending programme is a key policy to cut down on crude oil imports, improve energy security, and meet climate goals under the Paris Agreement. It works by mixing ethanol with petrol to lower carbon emissions and reduce dependence on traditional fuels. The programme has already reached the E20 target (20% ethanol in petrol) earlier than planned. However, it faces some challenges, like the possible effects on food supply, water use, and the need to balance clean energy goals with stable farming and vehicle technology. India launched the Ethanol Blending Programme (EBP) in 2003 to reduce carbon emissions and dependence on imported crude oil, which meets around 85–88% of India’s fuel needs. By 2019, EBP was implemented nationwide (except island territories), with a goal to achieve 20% ethanol blending (E20 fuel) by 2030. However, this target was achieved in 2025, five years ahead of schedule. E20 fuel contains 20% ethanol and 80% petrol, reducing petrol demand and saving Rs 1.44 lakh crore in foreign exchange. The 2018 Biofuel Policy (amended in 2022) accelerated blending targets and allowed ethanol production from diverse sources like sugarcane, damaged grains, and maize. Government incentives like subsidies, lower GST, and ease of interstate transport helped boost supply. Benefits include reduced oil imports, lower emissions, better air quality, and increased farmer income. However, challenges include lower vehicle mileage, unchanged fuel prices, engine compatibility issues (especially in older vehicles), and environmental stress due to water-intensive sugarcane cultivation. There’s also a food vs fuel debate, as land and crops shift from food to ethanol production, potentially causing food inflation. Despite these concerns, the government plans to raise blending levels further (possibly to 27% by 2030) and promote flex-fuel vehicles.

Flex fuel is a type of fuel made by mixing petrol (gasoline) with ethanol. Flexible Fuel Vehicles (FFVs) have internal combustion engines that can run on petrol, bioethanol, or any mix of the two — including 100% petrol, 100% ethanol, or any combination in between. It is used in special vehicles called flexible-fuel vehicles (FFVs), which have engines that can run on different amounts of petrol and ethanol—from only petrol to up to 85% ethanol (E85), or even 100% ethanol. Using ethanol-blended petrol in a car that isn’t designed for it can cause several problems. Ethanol can damage rubber and plastic parts in the fuel system, especially in older cars. It also absorbs water, which can lead to fuel system contamination. Over time, this can cause leaks, lower fuel efficiency, and even damage the engine. Ethanol, especially in higher blends like E20, can cause problems in BS4 and non-flex-fuel BS6 engines. These problems include rusting of fuel system parts, damage to the fuel pump and lower engine performance because ethanol has less energy and can cause engine knocking.

So we need an integrated approach with R&D under a ‘Made in India’ vision to develop flex-fuel engines, ethanol-adaptive engine modules, and hybrid technologies. It is also important to understand the pricing mechanism to ensure quick market adoption and promote an innovation-driven, technology-based approach for a safe and sustainable transition. A policy to support research in flex engines, a detailed study on the impact of ethanol on combustion engines, and a scientifically backed policy for upgrading non-flex vehicles to ethanol-compatible engines—aimed at reducing efficiency losses—is the need of the hour.