Broader Use Needed as Ethanol Production Capacity Expands

05-Dec-2025 08:54 PM

New Delhi. Currently, the limit for ethanol blending in petrol is set at 20 percent, while the biofuel manufacturing industry has the capacity to produce 4.50 billion liters of excess or surplus ethanol over and above the requirement.

To utilize this capacity, the scope of ethanol use needs to be expanded. Industry analysts say that the use of ethanol-blended petrol can be increased by encouraging the adoption of flexi-fuel vehicles. These vehicles are designed to easily accommodate higher ethanol blends.

The Director General of the Indian Sugar and Bio-Energy Manufacturers Association (ISMA), the apex body of private sugar mills, says that the target of 20 percent ethanol blending in petrol has been achieved. Now, this target needs to be further expanded.

The easiest solution is to increase the use of ethanol blending in flexi-fuel and strong hybrid vehicles. The technology for this is ready.

Original Equipment Manufacturers (OEMs) are ready to manufacture vehicles with this technology. Now, only policy regulations are needed to enable these vehicles to hit the roads.

This will naturally increase organic ethanol consumption and allow ethanol manufacturers to utilize their full production capacity.

India has already begun producing large quantities of ethanol from sugarcane, as well as rice and corn, yet its full potential remains unutilized.