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Need Policy for Affordable Bioethanol

Context

  • According to chief engineer Hiroya Ueda of Honda Motor Co Ltd., India has the advantage of achieving carbon neutrality through bioethanol and renewable energy-based electrification.
  • However the government needs to create a mechanism to make prices of bioethanol fuel more affordable to make it economically viable for users

What is Bio Ethanol?

Bioethanol is a type of ethanol (ethyl alcohol, C2H5OH) derived from biological sources, primarily used as an alternative fuel to petrol in road transport vehicles.

About Ethanol
  • It is a clear, colourless, and flammable liquid. It is also known as Ethyl Alcohol (C2H5OH)
  • Ethanol is produced through the fermentation of sugars by yeast or other microorganisms.
  • Once blended, ethanol cannot be separated from the petrol.
  • As the ethanol molecule contains oxygen, it allows the engine to more completely combust the fuel, resulting in fewer emissions and thereby reducing the occurrence of environmental pollution.
  • It has a higher octane number than gasoline, hence improving the petrol octane number.

Production of Bioethanol

Bioethanol is mainly produced through two methods:

  • Fermentation Process: The most common method involves fermenting sugars from crops such as corn, maize, wheat, sugar beet, and energy crops like sorghum and Jerusalem artichoke. The sugars from these crops are converted into ethanol by yeast fermentation.
  • Chemical Process: Ethanol can also be produced by reacting ethylene with steam in a chemical reaction.

Advantages of Bioethanol

  • Renewable Resource: Bioethanol is produced from crops, a renewable resource, unlike finite fossil fuels.
  • Reduction in Greenhouse Gas Emissions: Grain-based ethanol cuts greenhouse gas emissions significantly by 44 to 52% compared to gasoline, according to the US Department of Energy’s Argonne National Laboratory.
  • Extension of Oil Supplies: Blending bioethanol with petrol helps conserve limited oil supplies, reducing dependence on oil-producing nations, and contributing to fuel security.
  • Rural Economy Benefits: Increased demand for bioethanol leads to the growth of energy crops, thereby benefiting the rural economy.
  • Environmental Safety: Bioethanol is biodegradable and far less toxic than fossil fuels, causing minimal environmental pollution if spilled.
  • Improved Air Quality: Bioethanol can reduce carbon monoxide emissions, especially in older vehicle engines, improving air quality.
  • Integration with Existing Infrastructure: Bioethanol can be blended with petrol up to 10% (E10) without requiring modifications to vehicle engines or warranties. It can also be used in flexible fuel vehicles (E85, up to 85% ethanol).
  • Oxygenation of Fuel: Blending ethanol with petrol allows for more complete combustion, reducing pollutants and improving fuel efficiency.

What are the Challenges Associated with Ethanol Blending?

  • Production Challenges: The government’s target to achieve 20% ethanol-blended petrol by 2024-25 is facing setbacks due to restrictions on ethanol production from sugarcane juice in 2023-24.
  • Vehicle Compatibility: Vehicles in India are currently designed for E0 and calibrated for E10 (10% ethanol blend).
    • Using E20 (20% ethanol blend) may result in a loss of fuel efficiency – approximately 6-7% for four-wheelers and 3-4% for two-wheelers.
    • Modifications in engines are required to reduce this efficiency loss.
    • Moreover, the use of E20 will necessitate changes to the fuel lines, as well as some plastic and rubber parts, due to the corrosive nature of the fuel.
    • The engines will also need to be recalibrated for the required power, efficiency, and emission-level balance due to the lower energy density of the fuel.
  • Impact on Emissions: There are concerns regarding unregulated emissions such as acetaldehyde, which could be higher with E10 and E20 compared to normal petrol.
    • The overall impact on emissions, both regulated and unregulated, needs careful monitoring and assessment as India progresses towards higher ethanol blending.
  • Potential for food scarcity: Diverting crops for fuel can reduce food availability, leading to higher prices and food insecurity.
  • Competition for land: Biofuel crops can compete with food production and conservation needs, potentially leading to land-use changes and biodiversity loss.
  • Minimum Support Price: Ethanol production costs in India are higher compared to countries like the U.S. and Brazil. This is partly due to the government-fixed cost of raw materials like sugarcane and food grains, which are set to support farmers. This policy impacts the economic viability of the Ethanol Blending Programme (EBP)​​.

biofuels

Government Efforts To Advance Ethanol Blending In India
  • Central Agency Oversight: The Department of Food and Public Distribution oversees the promotion of fuel-grade ethanol distilleries in the nation.
  • Ethanol Blended Petrol Program (EBPP): Initiated in 2003, this program aims to foster the use of renewable fuels. Originally starting with 5% blending, the goal has been set to achieve 10% blending by 2022, and 20% (E20) by 2025-26, a revision from the earlier target of 2030.
  • National Policy on Biofuels (2018): This policy sets an indicative target of 5% biodiesel blending in diesel by 2030.
  • Differential Pricing: To offset the reduced or nullified sugar production, the government has established higher prices for ethanol produced from B-heavy molasses and entire sugarcane syrup.
  • GST Reduction: The Goods & Service Tax on ethanol intended for the Ethanol Blended Petrol Programme has been lowered from 18% to 5%.
  • Interest Subvention Scheme: This scheme aims to enhance and augment ethanol production capacity, promoting year-round production.
  • Ethanol Blending Roadmap 2020-25 by Niti Aayog: It lays out an annual plan to increase domestic ethanol production in line with the target of the amended National Policy on Biofuels (2018) as well as with its Ethanol Blended Petrol (EBP) Programme to reach a blending of 20% of ethanol in petrol (E20) by 2025/26.
    • Raise pan-India ethanol production capacity from the current 700 to 1500 crore litres.
    • Phased rollout of E10 fuel by April 2022.
    • Phased rollout of E20 from April 2023, its availability by April 2025.
    • Rollout of E20 material-compliant and E10 engine-tuned vehicles from April 2023.
    • Production of E20-tuned engine vehicles from April 2025.
    • Encourage use of water-sparing crops, such as maize, to produce ethanol.
    • Promote technology for the production of ethanol from non-food feedstock.

Way Forward

  • E20 Mission for Fuel Independence: India’s aim to lessen its dependency on fuel imports through the E20 initiative is commendable, but the 2025-26 target is ambitious.
  • Competition for Resources: Achieving this goal may lead to a clash for crop and land resources between fuel and food crops, necessitating a balanced approach.
  • Addressing Undernourishment: With a significant undernourished population, India needs to expand the cultivation of pulses, oilseeds, and horticultural crops.
  • Focus on Agricultural Productivity: Enhancing crop yields through advanced seeds and farming techniques is crucial, especially if these crops are used for biofuel production.
  • Land-Use Planning: A strategic plan for land use is vital to avoid dedicating existing croplands to fuel production, considering the decline in arable land in India.
  • Utilising Fallow Land: Prioritising the use of the increased fallow land, around 4.3 million hectares between 1978-79 and 2018-19, for biofuel crop production could be a solution.
  • Second Generation (2G) Biofuel Technologies: These technologies, which use waste materials like wheat straw, corn cobs, wood, and agricultural residues for bioethanol production, should be further researched and developed for commercial viability.
  • Avoiding Food vs. Fuel Dilemma: The roadmap should ensure no trade-off between achieving food and energy security, as both are equally important.

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I, Sakshi Gupta, am a content writer to empower students aiming for UPSC, PSC, and other competitive exams. My objective is to provide clear, concise, and informative content that caters to your exam preparation needs. I strive to make my content not only informative but also engaging, keeping you motivated throughout your journey!