AIDA Highlights Ethanol–Diesel Blending as Key to India’s Biofuel Future
The All India Distillers’ Association (AIDA) has called for ethanol–diesel blending to be considered as the next major step in India’s biofuel journey, positioning it as a practical solution to manage surplus ethanol while tapping into the country’s large diesel market. At a recent roundtable titled “What lies beyond E20?”, AIDA brought together industry leaders, technology providers, and policy stakeholders to chart the future of ethanol blending and explore new growth avenues for biofuels.
Surplus Ethanol Prompts Search for New Markets
With ethanol blending in petrol stabilising at E20 and production capacities expanding rapidly across India, the industry now faces a new challenge — excess ethanol supply. Consequently, AIDA stressed the need to diversify ethanol usage beyond petrol. The association highlighted diesel blending as a forward-looking strategy that can absorb additional supply while creating fresh demand channels.
Diesel Market Offers Massive Opportunity
Diesel represents nearly 40% of India’s total fuel consumption, more than double that of petrol. Therefore, even modest ethanol blending in diesel could generate significant new demand for domestically produced biofuels.
According to AIDA, this shift would:
*Support distilleries facing oversupply
*Improve energy security
*Reduce crude oil imports
*Strengthen rural and farm incomes
By leveraging the scale of diesel consumption, India can multiply the impact of its biofuel programme.
Industry Seeks Policy Clarity
AIDA President Vijendra Singh emphasised that the sector has already made substantial investments aligned with government blending targets. “The industry has invested heavily in capacity creation. What we need now is clear policy direction on the next phase — higher ethanol blending and diversified applications — so these investments can be optimally utilised,” he said.
Technology and Global Lessons Support Transition
During the roundtable, participants examined global best practices and emerging technologies that enable ethanol–diesel compatibility. Experts also discussed advanced biofuels such as isobutanol, which offer better engine compatibility and smoother integration with existing fuel infrastructure. Importantly, speakers noted that India does not need to start from scratch. International pilots and domestic trials have already demonstrated that low-level blends can deliver emission reductions without major engine modifications.
Beyond E20: Toward Higher Blends and Wider Applications
AIDA reiterated that increasing ethanol blending beyond E20 in petrol, while simultaneously exploring diesel blends, can serve a dual purpose — balancing surplus production and accelerating India’s climate goals.
The association also advocated:
*Regulatory pilot projects
*Stronger engagement with OEMs
*Phased implementation strategies
Such measures, it said, would ensure a smooth and scalable transition.
Boost for Farmers and Rural Economy
As reported by chinimandi.com, higher blending targets could also deepen the socio-economic impact of the ethanol programme. While E20 already benefits farmers and rural supply chains, moving toward E30 and diversified fuel applications could further strengthen farm incomes and local economies.
This article has been republished from The Chemical Industry Digest