Ethanol, an anhydrous ethyl alcohol having chemical formula of C2H5OH, can be produced from corn and rice, which are having high starch content. In India, ethanol is mainly produced from sugarcane molasses by fermentation process. Ethanol can be mixed with gasoline to form different blends. As the ethanol molecule contains oxygen, it allows the engine to more completely combust the fuel, resulting in fewer emissions and thereby reducing the occurrence of environmental pollution. Since ethanol is produced from plants that harness the power of the sun, ethanol is also considered as renewable fuel.
Ethanol Blended Petrol (EBP) programme was launched in January, 2003. The programme sought to promote the use of alternative and environment friendly fuels and to reduce import dependency for energy requirements.
EBP programme : The Ministry of Petroleum & Natural Gas (MoP&NG) vide its notification dated 20th September, 2006 directed the Oil Marketing Companies (OMCs) to sell 5% Ethanol Blended Petrol subject to commercial viability as per Bureau of Indian Standards specifications in notified 20 States and 4 UTs with effect from 1st November, 2006. The additional 10 States included Delhi, Himachal Pradesh, Madhya Pradesh, Chandigarh, Kerala, Rajasthan, West Bengal, Odisha, Bihar and Jharkhand. However, North - Eastern States, J&K, Andaman & Nicobar islands and Lakshadweep Islands have not been covered under the programme.
This programme has been extended to whole of India except Union Territories of Andaman Nicobar and Lakshadweep islands with effect from 01st April, 2019 wherein OMCs sell petrol blended with ethanol up to 10%.
The Government had 10% blending target for mixing ethanol with petrol by 2022 & 20% blending target by 2030. Government decided to advance the target of 20% ethanol blending in petrol from 2030 to ESY 2025-26. To achieve the target of 20% ethanol blending by 2025, approximately 1,016 crore litres of ethanol will be required. The total demand for ethanol, including other uses, is estimated to be around 1,350 crore litres. To meet this requirement, an ethanol production capacity of about 1,700 crore litres must be established by 2025, assuming the plants operate at 80% efficiency.