Ethanol-infused gasoline continues to be a lasting option in the market
India has made a significant stride in its green fuel journey, achieving the goal of 20% ethanol-blended petrol (E20) five years ahead of schedule. The Indian Oil Corporation Limited (IOCL) has announced that E20 fuel will be available in all its retail outlets across the country.
The shift to E20 fuel is part of India's efforts to promote green fuel and reduce its dependence on crude oil imports. The use of ethanol, primarily sourced from sugarcane juice and molasses, is expected to save foreign exchange and support rural economy via payments to farmers.
However, the adoption of E20 fuel has raised questions and concerns. The arguments for and against focus on fuel efficiency, vehicle health, consumer costs, and environmental impacts.
Proponents of E20 argue that the impact on fuel efficiency is marginal, with most vehicles launched after 2023 being E20 compatible and requiring no modifications. They also emphasize the environmental benefits, as E20 blending has helped reduce CO2 emissions by around 700 lakh tonnes, contributing to climate goals. Additionally, the energy security and economic benefits are significant, with ethanol blending reducing dependence on imported crude oil and boosting agricultural income and employment.
On the other hand, critics have raised concerns over fuel efficiency losses in older vehicles, possible longer-term vehicle component wear, consumer distrust of official data, and additional maintenance costs. Vehicles not designed or certified for E20 may require upgrades or modifications for optimal operation, potentially adding upfront costs or inconvenience for owners of older cars.
The Indian government is working towards mitigating these issues. It is planning to set up a National Biofuel Coordination Committee to monitor and guide the biofuels sector. Moreover, the government is providing incentives to oil marketing companies to increase ethanol blending in petrol, with the aim of increasing the ethanol blending to 20% by 2025.
The government views this as a milestone in reducing emissions and is also considering setting up a National Biofuel Fund to support research and development in the biofuels sector. The shift to E20 fuel is expected to save foreign exchange and mark a significant step in India's green fuel journey.
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- Amid the shift to E20 fuel in India, the environmental-science community has highlighted its potential to reduce CO2 emissions by around 700 lakh tonnes, significantly contributing to national climate goals, as indicated in Source 1.
- As concerns over fuel efficiency and vehicle health in older vehicles have been raised, the finance sector is closely watching the potential impact on consumer costs and the overall economy, given the energy and financial benefits of reduced dependence on imported crude oil, boosted agricultural income, and increased employment, as detailed in Source 4.
- With the introduction of E20 fuel, the science industry is encouraged to explore renewable energy sources such as ethanol, and investments in the research and development of biofuels are expected to increase, perhaps leading to the establishment of a National Biofuel Fund, in line with the government's green initiatives, as suggested in Source 5.
