India, the world's third-largest importer and oil consumer, has reached its goal of mixing 10 percent of sugarcane ethanol in gasoline even earlier than expected.The information was given by India's Prime Minister Narendra Modi in a speech to the Indian people in commemoration of the country's independence anniversary.

Modi said at the time that he is rooting for the country's energy independence. "We have to be self-sufficient in energy production," he said.

For a nation, which relies on the import of 85% oil and 50% gas, the key will be alternative sources of energy – from renewable energy to hydrogen and the shift to electric vehicles from current gasoline and diesel.

In an attempt to reduce dependence on imported oil, the government is pushing for the blend of ethanol, made not only from sugarcane but also through other agricultural commodities that can be used for biofuel production.

The target of supplying gasoline mixed with 10% ethanol (10% ethanol, 90% gasoline) was reached in June, before the original schedule of November 2022. Encouraged by success, the Indian government has advanced its goal of manufacturing gasoline with 20% ethanol in five years by 2025.

Last week, the Prime Minister had declared that the 10% ethanol mix resulted in the savings of about Rs 50,000 crore in foreign exchange, reduced greenhouse gas emissions and gave farmers an alternative source of income.

India is the world's fifth largest producer of ethanol after the US, Brazil, EU and China. The expectation is that the supply of gasoline with 20% ethanol will result in savings of US$ 4 billion per year. In addition, the increased mix will expand the use of renewable energy in the world's third-largest importer and consumer of oil and help turn the country's surplus rice and damaged food grains into ethanol.

Up to 10.17% of ethanol is being mixed in gasoline now, up from 8.10% that were mixed in 2020/21 and 5% above the 2019/20 cycle. The ethanol mixture in gasoline was only 1.53% in the 2013/14 crop season. According to India's Ministry of Petroleum, 2 million tons of crude oil were replaced due to the blend of ethanol in gasoline during the first three and a half months of the current fiscal year that began in April.

In 2020/21, 2.14 million tons of crude oil and 1.34 million tons were replaced in the previous year. The volume was 0.27 million tons in 2013/14.

The largest amount ever recorded, of 30.64 million liters of ethanol, was acquired by oil trading companies in the current year (December 2021 to November 2022). The number is more than 30.23 million liters sold last year and well above the 1.73 million liters sold in 2019/20.

For a mixture of 20%, an additional 10 million liters of ethanol will be needed. As ethanol availability increases, the equivalent amount of crude oil imports (used for gasoline production) is reduced. The government announced an additional tax per liter on unmixed fuels from October 2022 to encourage mixing.

Source: RPA news