India plans blending fuel with 20% ethanol |
For reducing its dependence on oil imports from other countries, India is planning to achieve 20% ethanol-blending with gasoline by 2025, five years ahead of its previous target. Last year the Indian government had set a target of reaching 10% ethanol-blending by 2022, meaning 10% of ethanol mixed with 90% of gasoline, and blending 20% by 2030. India is the world`s third-biggest oil importer, relying on foreign suppliers to meet more than 80% of its demand. In the current ethanol supply year, which started in October, India plans to have 8.5% ethanol-blending with gasoline. This would be raised to 10% by mixing in 4 billion liters of ethanol by 2022. It said, “To achieve 20% blending by 2025, and to meet the requirement of the chemical and other sectors, about 12 billion liters of alcohol/ethanol would be required.”. It added the sugar industry will divert 6 million tonnes of surplus sugar to produce 7 billion liters of the ethanol needed, while the other 5 billion liters of ethanol will be produced from excess grains. Moves to increase ethanol content are also aimed at providing an alternate source of revenue for sugar mills as India will not be entitled to extend sugar export subsidies beyond 2023, under the World Trade Organization Agreement on Agriculture.
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