E20 Ethanol Blending in India

GS2 – Governance

Context:

India achieved 20% ethanol blending (E20) in petrol by 2025, five years ahead of its original target under the National Biofuel Policy, and plans to reach 27% blending by 2030. Ethanol blending is a key component of India’s energy security and environmental strategy, aimed at reducing dependence on fossil fuels, lowering greenhouse gas emissions, and supporting domestic agriculture through sugarcane and other feedstocks.

Technical & Operational Challenges:
  • Mileage Reduction:
    E20 fuels reduce vehicle fuel efficiency by approximately 7%, while E100 (pure ethanol) can reduce efficiency by almost 30%, raising concerns over consumer acceptance.
  • Corrosion Risk:
    Ethanol’s hygroscopic nature (water absorption) accelerates rust formation in older vehicles, particularly two-wheelers, posing maintenance challenges.
  • Ignition Delay:
    Higher ethanol content demands higher ignition temperatures, which can impair cold-start performance and engine responsiveness, especially in older cars.
  • Disclosure Gap:
    Many fuel stations do not provide clear information on ethanol content, limiting consumer awareness and informed decision-making.
  • Price Disadvantage:
    Currently, ethanol blends are priced close to petrol, offering no significant economic incentive for consumers.
  • Warranty Risk:
    Vehicles manufactured before 2023 may void manufacturer warranties if they use fuels above E10, creating consumer hesitation.
  • Evidence Gap:
    Long-term effects of ethanol blends on engine durability and vehicle lifespan are not fully studied, requiring more empirical data.
Global Benchmark – Brazil’s Model:
  • Brazil pioneered ethanol blending during the 1970s oil crisis, combining technological innovation, supportive pricing policies, and flexible consumer choice.
  • Flex-Fuel Technology:
    Vehicles were designed to operate seamlessly on both petrol and ethanol, ensuring compatibility and reducing engine damage risks.
  • Retail Choice:
    Fuel stations offered multiple blends (E18–E27) and pure hydrous ethanol (E100), allowing consumer preference to guide adoption.
  • Price Alignment:
    Government interventions maintained ethanol at 25–35% cheaper than petrol, incentivising widespread use.
  • Phased Adoption:
    Gradual rollout minimized risks to older vehicles, ensuring a smooth transition to higher ethanol blends without compromising engine performance.
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