India Nears Ethanol Milestone, Emerges As Global Biofuel Leader

India is racing ahead in its clean energy journey, with the Ethanol Blended Petrol (EBP) Programme proving to be a transformative success. In a major milestone, the country achieved a record 19.6 per cent ethanol blending in petrol in January 2025 — a significant leap from just 5 per cent in 2019. This sets the stage for hitting the 20 per cent target well ahead of its original 2030 deadline.

Launched to reduce dependence on crude oil imports and promote sustainable fuel alternatives, the EBP Programme has seen unprecedented growth in recent years. Ethanol-blended petrol supplied by public sector Oil Marketing Companies (OMCs) has increased from 3,413 crore litres in the ethanol supply year (ESY) 2019-20 to an estimated 4,828 crore litres in 2023-24.

India is now the third-largest ethanol producer globally, behind only the United States and Brazil. While Brazil blends up to 27 per cent ethanol and the US uses blends between 10-15 per cent, India’s rapid scale-up from 5 per cent to 19.6 per cent blending in just five years is unmatched. With this pace, India is catching up and setting new benchmarks in sustainable fuel policy.

What began in 2001 as an experiment with sugarcane-derived ethanol has evolved into a structured national strategy. With robust policy support, incentives, and infrastructure investment, India has scaled up ethanol production significantly. A key development has been the shift from sugarcane-based ethanol to grain-based sources, such as maize, which accounted for 51 per cent of the ethanol procurement in 2023-24, up from just 9.51 crore litres in 2018-19 to 70.21 crore litres by 2021-22.

This transition has ensured a year-round ethanol supply and provided a fresh revenue stream for farmers, who now have a reliable market for surplus crops. Experts note that the programme’s success is creating a ripple effect across the rural economy, boosting agricultural incomes and reducing crop wastage.

The impact has been both economic and environmental. Between 2013-14 and 2023-24, India saved Rs 1,08,655 crore in foreign exchange by cutting crude oil imports. Additionally, ethanol blending has reduced 557 lakh metric tonnes of CO₂ emissions and substituted approximately 185 lakh metric tonnes of crude oil.

India’s leadership in biofuels is now being acknowledged on the global stage. Prime Minister Narendra Modi’s launch of the Global Biofuels Alliance in September 2023 has positioned the country as a key player in international energy cooperation and sustainable mobility.

With a projected requirement of 1,016 crore litres of ethanol to meet the 20 per cent target and a current production capacity of 1,700 crore litres, India is well on track to meet its goals. India’s ethanol revolution is lighting the way as the world looks for greener energy solutions.

Ratan Mani Lal is a Lucknow-based veteran journalist, economic analyst and regular columnist on socio-economic and modern technologies that have mass impact

This article has been republished from The BW Business World.