https://youtu.be/zYut2pdC5wE?

si=9Mk5zeMWf8jfxngv

CSR Limited (CSR) today announced a $17.8 million project to

significantly increase its fuel ethanol production capacity to 60
million litres per annum.

With demand for fuel ethanol continuing to increase in Australia, the

project enables CSR to increase its production of the renewable fuel
to meet this growth.

Currently, CSR produces up to 38 million litres of fuel ethanol and up

to 22 million litres of industrial/beverage grade ethanol at its Sarina
distillery each year.

CSR will now upgrade the distillery by installing a molecular sieve

dehydration unit to convert all its production to 60 million litres of
fuel grade ethanol. The additional production is already in strong
demand by Australian oil companies for blending into fuel.

CSR will continue to service industrial and beverage customers

through its additional sources of ethanol, including imports.

“This is a logical extension and important part of our strategy to

further increase recurring earnings in our Sugar business and improve
our renewable energy capability,” said Jerry Maycock, Managing
Director of CSR.

“CSR has long experience in producing renewable fuel ethanol from

molasses, a by-product of raw sugar production, and this project
further enhances our ability to meet the exponential growth in the
fuel ethanol market.”

The project builds on CSR’s previous successful step into the fuel
market following its first major installation of fuel capability
completed in 2006.

CSR is Australia’s second largest producer of ethanol and is strongly

positioned to develop its market position further.
“Demand for fuel ethanol continues to grow strongly, particularly as
awareness of its greenhouse gas abatement qualities increases,” said
Ian Glasson CEO of CSR Sugar.

“The nature of CSR’s ethanol process means that every litre of CSR
ethanol producesless than half the CO2 emissions of petrol, with no
impact on food prices,” he said.

Project construction is expected to commence in November 2008

with completion scheduled by June 2009.

Note to editors:

CSR Ethanol has been producing ethanol since the early 1900s and
CSR ethanol has been used for a number of years in Ethanol blended
fuels.

Demand for ethanol blended fuel has increased by 500 per cent in the
last 3 years with CSR now supplying over 250 petrol stations in
Australia.

Over 800 petrol stations throughout Australia now supply ethanol

blended fuel.

E10 is a fuel utilising a mix of 10% ethanol 90% petrol while E85
utilises 85% ethanol and 15% petrol.

According to the Federal Chamber of Automotive Industries (FCAI),

most new Australian made cars are suitable for E10 fuel and the vast
majority of new imported car models sold in Australia today are also
compatible with E5 or E10 ethanol blended fuels.

There is significant further potential for fuel ethanol with car

companies increasingly looking to develop more energy efficient
models including vehicles which run on E85.

https://mopng.gov.in/files/uploads/BPCL_Ethanol_Booklet_2023.pdf
https://enterclimate.com/blog/financial-assistance-for-ethanol-manufacturing-distilleries-and-sugar-
mills/

https://www.moneycontrol.com/news/business/budget/budget-2024-what-does-sugar-industry-
want-from-government-12154591.html

https://www.drishtiias.com/daily-updates/daily-news-editorials/india-s-ethanol-revolution-progress-
challenges

https://medium.com/@ashleylobo98/a-case-study-on-ethanol-blending-initiative-in-india-
125adfed0199

y 43% from2009–10 to 2018–19 [9]. The largest share (37%) of crude oilis consumed by the
transportation sector [10]. Though at pres-ent, it is not possible to replace crude oil entirely. But
biofuelsmay be a renewable energy source to stabilize this energydemand [11,12]. Biofuels can be
solid (wood pellets) andliquid, as well as gaseous (biogas or syngas). Bioethanol andbiodiesel are two
of the most commonly used types of liquidbiofuels [13]. Besides, coal-based methanol and electric
vehi-cles are expected to decrease the crude oil dependency infuture. But in India, the total sale of
electric vehicles is negli-gible (less than 1%) compared with the total sales of vehicles.It is predicted
that the sales can improve only a little due tovarious challenges [14]. Though in India, methanol from
coalis recognized as an efficient and environmentally friendly al-ternative compared with gasoline or
diesel, there is no com-mercial coal to methanol plant in India. This is becauseimporting methanol
from Iran and Saudi Arabia is economicalfor India [15], as the cost of methanol import is 0.27
USD/Liter [16], and the cost of domestic production of methanolfrom natural gas is 0.36 USD/Liter
[15](considering1USD=73 INR). Besides, setting up coal to a methanol plant with aproduction
capacity of 2 Million Liters of methanol per daywill require a capital investment of approximately
164 MillionUSD [15]. In contrast, ethanol is being domestically producedin a large quantity in India.
Though ethanol is slightly lessenergy efficient than methanol [17], it can be effectively usedas an
alternative to gasoline. In addition, setting up an ethanolplant requires much less capital investment.
For instance, amolasses ethanol plant with a capacity of 0.05–0.12 MillionLiters per day will require a
capital investment of 3.3–22Million USD (considering 1 USD = 73 INR) [18,19], thiscost becomes even
lower for setting up a plant in attachmentwith sugar factories [19]. Thus, ethanol becomes a
clearchoice for the Government of India (GoI).Most countries have the potential to produce ethanol,
as itcan be extracted from sugar, starch, and lignocellulose-basedmaterials. It is one of the earliest
ventures to produce ethanolfrom starchy and sugar-based feedstocks. In 1917, AlexanderGraham
Bell successfully converted sugars into clean-burningethanol fuel [20]. Ethanol (C2H6O) is a chemical
compoundknown as alcohol, drinking alcohol, grain alcohol, or ethylalcohol. Alcohol is produced in
various forms such asRectified Spirit (95 to 96 % v/v ethanol), and Extra NeutralAlcohol (96 % v/v
ethanol), and Fuel Ethanol or AbsoluteAlcohol (99.8 % v/v). Among these, the rectified spirit is
usedfor industrial purposes, extra natural alcohol is used to pro-duce potable liquor, and absolute
alcohol is used mainly forblending with gasoline [21]. Unlike fossil fuel, which pro-motes global
warming by contributing to the formation ofcarbon dioxide (CO2)[22], the overall emission of
CO2isnil during combustion of ethanol because of the amount ofCO2released at the time of
combustion is equal to the amountof CO2absorbed during photosynthesis [23]. Further,
ethanolblending with gasoline increases the octane number, oxygencontent, and latent heat of
evaporation of the blended fuel[24–26]. In addition, the increased octane number contributesto the
reduction in the engine knocking tendency and thehigher latent heat of evaporation reduces the
cooling loss, aswell as improves the engine's thermal efficiency [24,25].Besides, the complete
combustion of ethanol-blended fueldue to the presence of increased oxygen content and
increasedvolumetric efficiency of the engine helps in the reduction ofthe content of carbon
monoxide (CO), oxides of nitrogen(NOX), and saturated hydrocarbon emissions [25,26]. So, ithas
been reported that ethanol blending with gasoline im-proves engine efficiency while reducing
environmental haz-ards significantly [27,28]. This makes ethanol a promisingbiofuel as future energy
rendering renewable fuel. Thus, tak-ing into account ethanol's advantages, ethanol's blending
withgasoline has been made mandatory by different ethanol-producing countries across the world.
Table 1shows theblending percentage and future blending targets of those coun-tries. Brazil has
successfully implemented the global highestblending rate of 27% (E27) throughout the country
[29,30].The blendingof ethanol with gasoline is also made mandatoryin India to reduce dependency
on imported crude oil [37]. TheGovernment of India (GoI) is encouraging sugar factories bygiving
loans and other financial benefits for producing ethanol[3], as it is considered that the ethanol sector
of India possessesthe potential to meet the blending target [38]. As a result, Indiahas already
experienced steady growth in its production.1.1 Need for the studyThe intervention of the GoI has
been instrumental in the de-velopment of the ethanol sector in India till now [39], and theGoI is still
focusing upon the Ethanol Blended PetrolProgramme (EBPP) to make it successful [40]. In the
wakeof this national objective, many studies have been conductedon various aspects of the ethanol
sector in India. Differentstudies have focused upon ethanol's policy implications[35–38], as well as
the past and current technologies for eth-anol production in India [41]. Studies have also been
conduct-ed to assess the prospects of ethanol production from differentsecond-generation biomass
like sugarcane bagasse [42], ricestraw [43,44], wheat straw [45], and corn stover [46]. But it
isreported that the second-generation ethanol and third-generation ethanol are still not
commercially successful inIndia [47], which left the first-generation ethanol as the onlycommercially
viable option.The current target of 20% ethanol blending set by the GoIis an ambitious one that will
help the country boost its energyand financial security by reducing the import burden of crudeoil.
However, it is noteworthy to mention that the GoI's blend-ing target for the EBPP has never been
met within its givenBiomass Conv. Bioref.

timeframe. Moreover, it is evident that the development of theentire ethanol sector is necessary to
support the goals of eth-anol blending, as the source of ethanol production in India isthe same
irrespective of the end-use of the produced ethanol[48]. Thus, the present situation demands
policies for the ho-listic development of India's ethanol sector to meet its ambi-tious target. For this
purpose, it is very crucial to know thesignificant factors associated with the development of
theIndian ethanol sector, i.e., strengths and opportunities(drivers), as well as weaknesses and
threats (barriers). Theidentification of such factors can only be possible after a thor-ough assessment
of the sector. But, such a comprehensiveoverview of India's ethanol sector is not thoroughly
availablein the literature. This has motivated us to assess the Indianethanol sector to identify its
weaknesses and threats (barriers),as well as strengths and opportunities (drivers) like Iglińskiet al.,
who presented a comprehensive overview of wind en-ergy in Poland [49], and Mateescu and Dima
assessed thebarriers and challenges for the biogas sector growth inRomania [50].1.2 Objective of the
studyThis study aims to analyze the Indian ethanol sector and for-mulate strategies for its
betterment so that the Indian ethanolsector's situation can be improved, which will eventually
helpIndia meet the ethanol blending targets. Hence, an overallassessment of India's ethanol sector
has been carried out alongwith proposal of strategies for the development of the
sector.2MethodologyIt is clear from the GoI's approach that its objective is toempower and boost
the ethanol sector as ethanol blendingwith gasoline is given prime importance. So, the frameworkof
the study is designed in such a way that it covers the pasttrend, current status and policies for the
ethanol sector in Indiato get a clear insight into the scene while recognizing theprospects of its
development. Figure 1shows the frameworkof the present study, and the methodological approach
takenfor the study is also discussed below.2.1 Literature reviewFirst of all, the literature survey has
been conducted to con-struct the base of this study. During the literature survey, var-ious sources
were used to gather information, including arti-cles and conference proceedings from publication
databases,book chapters, energy reports, energy policies and energyportfolios of different countries.
Articles published by re-searchers in the relevant field was searched from GoogleScholar and Scopus
database using relevant keywords.Henceforth, the collected articles and reports are scrutinizedto
keep the most relevant ones while eliminating others.In this study, the literature review has also
been conductedregarding the worldwide scenario of ethanol production tounderstand the global
trend in ethanol production by the topethanol-producing countries. So, the global position of Indiain
ethanol production can be determined. Further, the litera-ture review is also concentrated toward
the scenario of theethanol sector in India, as well as the State-wise scenario ofthe ethanol sector in
the country. It is done to analyze thestatus of the Indian ethanol sector in terms of
production,consumption, import, export, feedstock, and technological de-velopment. Further, itwill
also helpin finding the contributionof each stateand the scope for growth in meeting the
blendingtarget as the factors involved in ethanol production vary dras-tically across India. Finally, the
literature review is carried outto examine the implication of ethanol policy in India to under-stand
the consequence of the policies adopted by theGovernment of India in regard to the ethanol sector
in thecountry.2.2 STEEP analysisSTEEP analysis has been extensively used in the field of mar-keting
and strategy consulting, and it is often termed as PESTor PESTEL/PESTLE analysis because of the
similarity in na-ture [51,52]. STEEP evaluates a context on the basis ofits fiveTable 1 Blending
percentage in2019 and future blending targets[27,29–36]Country Ethanol blending Planned
targetUSA Renewable Fuel Standard, 2005 Renewable Fuel StandardBrazil E27 E27 (27%)EU 4.1–10%
(depending on Country). 4.1–16.4% (depending on Country)Canada 2–4% (depending on province)
5–10% (depending on Province)India 4.5% E20 (20%)China 2.4% E10 (10%)Thailand E10 (10%) E20
(20%)Argentina 11.6% 12%Biomass Conv. Bioref.

perspectives such as social, technological, economic, environ-mental, and political and on the same
way PESTEL (orPESTLE) analysis is used to examine the impact of the exter-nal environment upon the
operations of an organization fromthe political, economic, social, technical, environmental, andlegal
perspectives [53]. STEEP analysis has been used to rec-ognize and overcome the hurdles of China's
waste-to-energyincineration industry and develop the same [54]. It has alsobeen implemented for
scenario development in a case studyfor the electricity industry in Colombia, as well as to find outthe
Challenges of Microgrids in Remote Communities [55,56]. Moreover, STEEP analysis can be
incorporated withSWOT analysis to increase the effectiveness of the analysis.In this regard, Singh et
al. have discussed how PEST analysiscan be used before SWOT analysis to identify the SWOTfactors
[57]. Similarly, Ighravwe et al. have effectively carriedout a STEEP-cum-SWOT analysis to evaluate
maintenance ofan off-grid street light system [58]. Hence fore in this study, aSTEEP analysis has been
carried out to identify the social,technological, economic, environmental, and political factorsassoci

4 Scenario of the ethanol sector in IndiaFrom the above discussion, it is observed that global
ethanoldemand, as well as its production, has increased. It has alsobeen understood that countries
having adequate production ofa particular agricultural crop is utilizing that crop as feedstockfor the
production of ethanol. In this context, it is essential tosee the ethanol production scenario in India
and its end-use.India is known for its agricultural resources [96], and severalcrops are available here
in adequate quantity. In this section,information regarding ethanol production has been conferred

along with the primary feedstock used to produce it. Further,this section also represents the
scenario of ethanol importedand exported by the country.4.1 Production and consumption of
ethanol in IndiaIndia is one of the significant ethanol-producing countriesglobally, which has a total
number of 231 distilleries [97].Table 3displays the year-wise production and consumptionof ethanol
in India for the last 10 years. According to theUSDA GAIN report, India's average ethanol production
from2010 to 2019 is 2068.5 Million Liters (ML). During this pe-riod, the production of ethanol has
improved by 67%. In India,ethanol is mainly produced in the sugar industries. This is thereason why
the production of ethanol is dependent upon theproduction ofsugarcane. As a result, the ethanol
production ofthe country declined in 2016 and 2017 because of a drought-hit Maharashtra in 2016.
However, the production of ethanolbounced back from 2018. Figure 2shows that the
percentageshare of the country in ethanol production has also increasedfrom 2010 to 2019, and the
share reaches almost 2% in 2019.Table 3also shows the rise in ethanol consumption in thecountry
from the year 2010 (1600 ML) to 2019 (3370 ML).From Table 3, it can be seen that the growth in
consumption is110% in this period. Ethanol is mainly utilized for producingpotable liquor and for
industrial uses in India. Nevertheless,the surplus amount of ethanol is given to the Oil
MarketingCompanies (OMCs) for blending since blending is made com-pulsory by the GoI. The year-
wise consumption of ethanol inIndia by each sector for the last 10 years is shown in Fig. 6,including
the average blending rate achieved each yearthroughout the country. From 2010 till 2019, ethanol
con-sumed by industries and potable liquor did not change drasti-cally compared with ethanol used
for blending with gasoline.The ethanol consumption from 2010 to 2019 in industrial usesincreased
by 36%. For making potable liquor, the consump-tion decreased by 27% whereas, the amount of
ethanol usedfor blending with gasoline increased by 3700% in the same
period. This is due to the policy of the GoI regarding ethanolblending.Ethanol was not primarily used
for blending purposes inIndia until 2003 when the GoI made 5% blending (E5) man-datory under the
EBPP. However, in India, the supply of eth-anol was not enough to fulfill the demand. Further, the
blend-ing target was revised and made 10% in October 2008 [99]and 20% in December 2009 [100].
Though, none of the blend-ing targets has been achieved till now.In this background, it is essential to
look at Table 4,which shows the projected demand as per the utilizationand availability of ethanol in
the near future. From this data,it is visible that even if the ethanol blending percentage isnot
increased, still there will be a deficiency of ethanol.From a recent study, it is clear that even to meet
the targetof 10% blending with molasses, the production of molassesneeds to be doubled. However,
infrastructure-wise, thecountry is not prepared to implement this [102].
Besides,increasingtheareatocultivatesugarcanewillcostthelandfrom other staple food crops [103].
Hence, it is realised thatthe existing infrastructure of ethanol production is inade-quate to meet the
current as well as growing demand inIndia. Even the growth of the existing model of
ethanolproduction from sugarcane molasses is minimal. This situ-ation stimulates us to investigate
the ethanol sector furtherto look for avenues for its growth.4.2 Import and export of ethanol in
IndiaI

https://www.researchgate.net/publication/
351356354_Comprehensive_overview_and_proposal_of_strategies_for_the_ethanol_sector_in_Indi
a

https://www.blueweaveconsulting.com/report/india-ethanol-market
BIBLIPGRAPHY

https://www.thehindu.com/news/national/e20-fuel-outlets-will-have-pan-india-presence-by-2025-
hardeep-singh-puri/article67053073.ece

https://www.niti.gov.in/sites/default/files/2021-06/EthanolBlendingInIndia_compressed.pdf

https://mopng.gov.in/files/uploads/BPCL_Ethanol_Booklet_2023.pdfhttps://mopng.gov.in/files/
uploads/BPCL_Ethanol_Booklet_2023.pdf

POLICY GOVERNMENT

Ethanol Policy
Ethanol Blended Petrol (EBP) Programme is aimed at
achieving multiple outcomes such as, addressing
environmental concerns, reducing import dependency
and providing boost to agriculture sector.

This policy will help in acheving energy security of the country and reduce the import dependencies
by adopting biofuels as of one of the measures.

About the Scheme

The Central Government is emphasizing on achieving energy security of the country with a target of
reducing import dependence by adopting biofuels as one of the measures. Country's import
dependence for fuel requirement in tandem with environmental pollution issues have driven the
need for biofuels that have superior environment benefits and are economically competitive with
fossil fuels. Thus, in order to promote biofuels in the country, the National Policy on Biofuels-2018
aims to bring in renewed focus on the renewable energy sector keeping in mind its sustainability and
cost effectiveness. The National Policy on Biofuels-2018 inter-alia allows the production of ethanol
(biofuel) from sugarcane juice, sugar containing materials like sugar beet, sweet sorghum, starch
containing material like corn, cassava, broken rice, FCI rice, maize etc.

The Central Government with a view to increase production of ethanol and its supply under Ethanol
Blended with Petrol (EBP) Programme, especially in the surplus season and thereby to improve the
liquidity position of the sugar mills enabling them to clear cane price arrears of the farmers notified
the scheme namely “Scheme for extending financial assistance to sugar mills for enhancement and
augmentation of ethanol production capacity” vide notification No. S.O. 3523(E), dated 19.07.2018,
which was subsequently amended vide notifications No. S.O. 3952(E), No. S.O. 5219(E), No. S.O.47
(E), No. S.O. 4104(E) and No. S.O. 1523(E) dated 09.08.2018, 11.10.2018, 04.01.2019, 14.11.2019
and 20.05.2020 respectively. Thereafter schemes for extending financial assistance to sugar mills &
molasses based standalone distilleries for enhancement and augmentation of ethanol production
capacity were notified on 08.03.2019 vide notifications No. S.O. 1227(E) & S.O. 1228(E). Further vide
notifications No. S.O. 3135(E) & S.O. 3136(E) dated 15.09.2020, a window was opened for 30 days
for inviting applications under the scheme from molasses based stand alone distilleries and from
sugar mills. Further, the Central Government, notified the modified scheme namely- “Scheme for
extending financial assistance to project proponents for enhancement of their ethanol distillation
capacity or to set up distilleries for producing 1st Generation (1G) ethanol from feed stocks such as
cereals (rice, wheat, barley, corn & sorghum), sugarcane, sugar beet etc.” on 14.1.2022.

To achieve the set target of 20% blending by 2025, Central Government has decided to open a
window for inviting fresh applications from those project proponents who have acquired land for
ethanol projects and obtained Environmental Clearance for enhancement of their ethanol distillation
capacity or to set up distilleries for producing 1st Generation (1G) ethanol from feed stocks such as
cereals (rice, wheat, barley, corn & sorghum), sugarcane, sugar beet etc.”

Assistance under the Scheme

(i) Interest subvention @ 6% per annum or 50% of rate of interest charged, whichever is lower, by
banks/National Cooperative Development Corporation (NCDC)/ Indian Renewable Energy
Development Agency Limited (IREDA)/ Non-Banking Financial Companies (NBFCs)/any other financial
institutions which are eligible for re-finance from NABARD, on the loans to be extended shall be
borne by the Central Government for five years including one year moratorium against the loan
availed by project proponents.

(ii) Interest subvention under the scheme shall be provided on loan amount sanctioned and
disbursed in respect of each project based on the proposed capacity, limited to the in principle
approval by Department of Food and Public Distribution (DFPD).
(iii) Interest subvention would be available to only those distilleries which will supply at least 75% of
ethanol produced in an Ethanol Supply Year (ESY) (Dec-Nov) from the added distillation capacity to
OMCs for blending with petrol.

(iv) Assistance shall not be available to sugar mills and distilleries which have availed benefits under
any other scheme of Central Government for the same project.

(v) In case of grain based distilleries, interest subvention would be applicable only if they are using or
will be using dry milling technique to produce DDGS.

Eligibility

Assistance under the scheme shall be available for:

(i) Setting up grain based distilleries/expansion of existing grain based distilleries to produce ethanol.
However, benefits of interest subvention scheme is to be extended to only those distilleries which
are using or will be using dry milling technique to produce Dried Distillers Grain with Solubles
(DDGS).

(ii) Setting up new molasses based distilleries/expansion of existing distilleries (whether attached to
sugar mills or standalone distilleries) to produce ethanol and for installing any method approved by
Central Pollution Control Board for achieving Zero Liquid Discharge (ZLD).

(iii) To set up new dual feed distilleries or to expand existing capacities of dual feed distilleries.

(iv) To convert existing molasses based distilleries (whether attached to sugar mills or standalone
distilleries) to dual feed (molasses and grain/ or any other feed stock producing 1G Ethanol); and
also to convert grain based distilleries to dual feed.

(v) To set up new distilleries / expansion of existing distilleries to produce ethanol from other feed
stocks producing 1G ethanol such as sugar beet, sorghum, cereals etc.

(vi) To install Molecular Sieve Dehydration (MSDH) column to convert rectified spirit to ethanol in
the existing distilleries.

NEWS

Current ethanol production capacity is 1,364 crore litres; sufficient to meet blending targets

https://auto.economictimes.indiatimes.com/news/oil-and-lubes/current-ethanol-production-capacity-is-1364-crore-
litres-sufficient-to-meet-blending-targets-centre-tells-rajya-sabha/105746933

Assam contributes 14% of total crude oil production in the country

Read more at:

https://auto.economictimes.indiatimes.com/news/oil-and-lubes/assam-contributes-14-of-total-crude-oil-
production-in-the-country-minister/105745617
Growing Demand for Ethanol in India
The demand for ethanol in India is growing rapidly due to the government’s
initiatives to promote ethanol blending with gasoline. Ethanol blending is the process
of mixing ethanol with gasoline in a certain proportion, which helps reduce the
emission of harmful pollutants from vehicles. The Indian government has set an
ambitious target of achieving 20% ethanol blending with gasoline by 2025, which
means the demand for ethanol will likely grow significantly in the coming years.

Government Policies and Incentives for Ethanol Plants in

India
To encourage the establishment of Ethanol Plants in India, the government has
launched several schemes and policies that provide financial and other incentives to
investors. For instance, the government has announced a production-linked incentive
scheme for the ethanol industry, which provides a subsidy of INR 1,000 per ton of
ethanol produced over a period of six years. The government has also allowed the
free movement of ethanol within the country, opening up new markets for ethanol
producers.

Key Challenges Facing Ethanol Producers in India

Despite favorable government policies, ethanol producers in India face several
challenges that hinder the industry’s growth. One of the major challenges is the high
cost of feedstocks such as sugarcane and corn, which account for a significant
portion of the production cost. Additionally, the lack of adequate infrastructure for
the storage and transportation of ethanol is another major challenge that needs to
be addressed. Finally, the competition for cheaper imported ethanol is another
challenge that local producers face.

Opportunities and Potential for Ethanol Plants in India

Despite the challenges, the prospects for the ethanol industry in India are bright.
The government’s push towards ethanol blending and its focus on renewable energy
sources are expected to boost the biofuel plant manufacturer significantly. Moreover,
the rising demand for ethanol from the chemical, pharmaceutical, and beverage
industries also presents a significant opportunity for ethanol producers in India. The
ethanol industry is also expected to generate employment opportunities in rural
areas, where feedstocks such as sugarcane and corn are grown.
The Road Ahead for Ethanol Plants in India
To ensure the sustainable growth of the ethanol industry in India, it is crucial to
address the challenges facing ethanol producers. The government must promote the
cultivation of alternative feedstocks, such as sweet sorghum, which require less water
and can be grown on marginal land. Additionally, there is a need for greater
investment in storage and transportation infrastructure to ensure the safe handling
of ethanol. The government can also consider providing subsidies and incentives to
promote the adoption of new technologies that can improve the efficiency of
ethanol production.

Conclusion

The expansion of ethanol plants in India presents significant opportunities for

renewable energy investors and stakeholders. With the government’s focus on
promoting renewable energy sources and reducing carbon emissions, the ethanol
industry is expected to grow rapidly in the coming years. While challenges need to
be addressed, the potential of the ethanol industry to generate employment and
promote rural development cannot be overlooked. With the right policies and
incentives, the ethanol industry in India can become a major player in the global
renewable energy market.

PIC SS LIY Hii add evaluation of ethanolpolicy

In March 2019, GOI launched the Pradhan Mantri Ji-Van Yojana to provide financial support to set up
integrated bio-ethanol plants. Interest subsidy was announced on loans for ethanol projects from
sugarcane, molasses, and grains, and a long-term procurement policy for ethanol was also unveiled
to help producers plan investment decisions. A mechanism to fix ethanol prices—based on the cost
of raw materials—was also announced. In 2020, use of surplus rice with FCI was allowed to be used
as a raw material for ethanol production. Broadly, there are two types of ethanol: denatured ethanol
and un-denatured. Denatured ethanol has denaturant added to it, rendering it unfit for human
consumption. It is used as fuel, or as inputs for medical and industrial purposes to produce
sanitizers, etc. Undenatured ethanol is mainly used as a concentrate for alcoholic beverages.
Between the financial years 2015-16 and 2021-22, India was a net importer of denatured ethanol
(DGCIS). In FY 2021-22, the country imported 0.49 billion litres of denatured ethanol valued at USD
344 million. Imports increased from 2016-17 and peaked at 0.59 billion litres in 2020-21, official
statistics show. India’s denatured ethanol imports are mainly sourced from the USA and Brazil. The
import of ethanol for fuel blending has been restricted since 2019 (DGFT 2019). However, in her
Union Budget speech for the year 2023-24, Finance Minister Nirmala Sitharaman proposed to
exempt basic customs duties on imported denatured ethanol (PIB 2023). This measure is likely to
improve the availability of denatured ethanol for industrial use by chemical and other industries,
releasing greater amounts to meet the ethanol-blending mandates

https://arcusresearch.in/wp-content/uploads/2023/05/Ethanol-blending-of-petrol-in-India-APR-.pß
PROCESS

Process of Producing Ethanol: As main and by-product

As our objective is to predict future supplies of sugarcane and assess its sufficiency for

meeting the ethanol fuel-blending targets, this section—providing brief details of the

physical process of ethanol production—becomes critical on two counts: First, it outlines

the method that Indian mills and distilleries use to produce sugar and other products.

Second, it lists the assumptions that we have made for making the predictions.

Process of making ethanol: It is critical to understand that ethanol can be produced both

from molasses (A, B and C-Heavy) and as a fresh product made directly from sugarcane

juice. A higher value of sucrose in the feedstock enables higher efficiency in ethanol

production. For example, if ethanol is produced directly from sugarcane juice, a mill can get

about 62 to 70 litres of ethanol per tonne of sugarcane. However, if ethanol is produced as a

by-product—when mills extract other ingredients including sugar—every tonne of sugarcane

is likely to give anywhere between 18 to 20 litres of ethanol. We explain this below.

1. Extraction of juice/sucrose from sugarcane: Depending upon the recovery rate of

sugarcane ( defined as the rate of sucrose that every tonne of cane yields), a mill extracts

juice. Based on the difference in milling efficiency and the amount of sucrose content

(total recoverable sugar) in sugarcane, the recovery rate across the county is found to be

anywhere between 10.75 to 11.04 percent (based on ISMA data and discussions with

distilleries). The recovery rates differ across Indian states. For major sugarcane producing

states such as UP, MH and KA, the recovery rates are found to be 11.43 percent, 11.21

percent, and 10.92 percent respectively (ISMA 2020-21).

2. Ethanol produced directly from sugarcane juice: Raw sugarcane juice can be

directly diverted for ethanol production. This process yields no sugar in the process.

Accounting for differences in milling/distillation efficiency, sugarcane juice from 1

tonne of sugarcane yields anywhere between 62 to 70 litres of ethanol.

3. Ethanol as by-product of sugar production: In this method, raw juice is processed

to produce sugar. This process produces A, B and C-Heavy molasses. This molasses

can be used to produce ethanol. Both sugar and ethanol can be produced by using

A, B, and C-Heavy molasses routes, with different per tonne sugarcane to sugar and

ethanol conversion rates (Mohan, Swain and Paroha 2017). Based on discussions wisugarcane-based
ethanol distilleries and data from ISMA, the recovery rate of sugar from sugarcane is found to be
between 10.75 to 11.04 percent, meaning that one tonne of sugarcane yields anywhere between
107.5 to 110.4 kilograms of sugar.
As stated earlier, with amendments to NPB 2018, more distilleries are focusing on B-heavy molasses
route for sugar and ethanol production. Based on discussion with distilleries in the two high ethanol
producing states of UP and MH, the following conversion rates for ethanol from one tonne of
sugarcane during the process of making sugar are observed: i. High efficiency conversion rates: In
efficient distilleries, one tonne of sugarcane yields 20 litres of ethanol. ii. Low efficiency conversion
rates: One tonne of sugarcane yields 18 litres of ethanol.

Main (imp)
https://www.chemanalyst.com/industry-report/india-ethanol-market-80

conclusion
Results of this study revealed that pretreatment of the substrate are
necessary for obtaining of more sugars as a result of enzymatic
hydrolysis. The sugars produced by enzymatic hydrolysis were readily
converted into ethanol by using S.cervisae in submerged fermentation
at 30 °C for four days of incubation. Sugarcane bagasse is found to be
very effective substrate for ethanol production and this might be
helpful for scaling up and make the process cost effective

https://www.ncbi.nlm.nih.gov/pmc/articles/PMC4166269/

Ethanol blended petrol and

diesel have enormous growth
potential in India for use as
fuels in transport
sector. Apart from lucrative
promises of ethanol as an
alternate fuel, it provides
cleaner and greener
environment and less
dependency on import of crude
oil. In order to implement
ethanol blending program
(EBP) throughout the country, all
the concerned stakeholders i.e
policy makers, regulators,
producers and
OMCs must agree on the point
that while allocating ethanol as
transport fuel we should not
neglect its
huge demand in chemical
industries and its revenue
potential in potable sector.
Distilleries in India are not
lagging behind in technology as
well as capacity to produce the
required ethanol to meet its
demand in
India, instead they struggles
between the availability of raw
material i.e. molasses and assured
market for
its product i.e. ethanol for fuel at
right price. In addition, the
present purchasing mechanism of
ethanol by
OMCs discourage distilleries to
supply their product on lower
bid price. Infact, the price of
ethanol is
fixed and relate to ex-works
price of petrol, which are having
different route of origin and thus
based on
all together different feed
stocks, molasses for ethanol and
petroleum crude for petrol.
Thus, the price
correlation of ethanol with petrol
can never be acceptable on
sustainable basis neither for
supplier nor for
purchaser.
Ethanol blended petrol and
diesel have enormous growth
potential in India for use as
fuels in transport
sector. Apart from lucrative
promises of ethanol as an
alternate fuel, it provides
cleaner and greener
environment and less
dependency on import of crude
oil. In order to implement
ethanol blending program
(EBP) throughout the country, all
the concerned stakeholders i.e
policy makers, regulators,
producers and
OMCs must agree on the point
that while allocating ethanol as
transport fuel we should not
neglect its
huge demand in chemical
industries and its revenue
potential in potable sector.
Distilleries in India are not
lagging behind in technology as
well as capacity to produce the
required ethanol to meet its
demand in
India, instead they struggles
between the availability of raw
material i.e. molasses and assured
market for
its product i.e. ethanol for fuel at
right price. In addition, the
present purchasing mechanism of
ethanol by
OMCs discourage distilleries to
supply their product on lower
bid price. Infact, the price of
ethanol is
fixed and relate to ex-works
price of petrol, which are having
different route of origin and thus
based on
all together different feed
stocks, molasses for ethanol and
petroleum crude for petrol.
Thus, the price
correlation of ethanol with petrol
can never be acceptable on
sustainable basis neither for
supplier nor for
purchaser.
Review of literature

Vol.1 No.2, July - December, 2010

pp.209-219
Mahesh K. Saini, Neelima
Garg, Anil K. Singh, Ajay K.
Tyagi, Utpal K. Niyogi and
Rakesh K. Khandal
Mahesh K. Saini, Neelima
Garg, Anil K. Singh, Ajay K.
Tyagi, Utpal K. Niyogi and
Rakesh K. Khandal
Mahesh K. Saini,Neelima Garg, Anil K. Singh
Ajay K. Tyagi, Utpal K. NIYOTI , RAKESH K.
KHANDAL

Volume 9, Issue 3, March 2018

Chandra Prasad B S, Venkatesh Reddy D M and Sunil S

A DBT–CII (2010) study on estimation of net energy and carbon balance of bio-ethanol across its
value chain concludes a net positive energy balance resulting in overall reduction of carbon
emissions; life-cycle studies in the field are still ongoing. The lower calorific value of EBP has
implications for material, design and performance compatibilities of vehicular fleet. As the discussion
on the tests of automobiles revealed, the regulated emissions of carbon dioxide, nitrogen oxide and
hydrocarbons increased using ten percent blending with mileage accumulation on all test vehicle
categories. Thus, while the blending up to five percent does not have any serious implications, the
subsequent step up to ten and twenty percent will have to be done with caution.

Volume 79, April 2024, 101385

VIPIN KUMAR AZAD

Ethanol blending target feasibility can be known well in advance before actual
implementation. The associated impacts of ethanol blending targets on the environment,
economy, and society can be identified through the proposed analysis. The analysis will
facilitate in estimating the following: (i)ethanol (fuel) production, (ii)sugar production,
(iii)land requirements, (iv)bagasse generated, (vii)quantity of molasses produced and (viii)
GHG emission

2018 JETIR July 2018, Volume 5, Issue 7 Nutan Sharma, Associate Professor

Due to its environmental merits, the share of bio- ethanol in the automotive fuel market will grow
fastin the next decade. Having developed long experiencewith low-level ethanol blends (E10 to E26),
as well as with nearly pure ethanol (E85), Brazil and the US benefit from learning curve and corn for
the US. EspeciallyBrazil exhibits the lowest production costsof bio-ethanol fuel worldwide and is in
position to capture a large share of the international market in thefuture. However, the market price
of bio-ethanol fuel will fluctuate as a result of the balance between demand and supply of bio-
ethanol, oil and sugar. It is likely that the trend will be for an increase as a consequence of the fast
growth of the world demandin the future. India is one of the first producers and consumers of sugar
worldwide and it is not envisaged for this country to use sugarcane for producing part ofits future
requirement of bio-ethanol fuel. However, molasses of sugarcane can be used complementarilyto
sweet sorghum juice. It is assumed that a portion ofgrain sorghum is replaced by sweet sorghum
without any additional agricultural land. Although the results show that India is not competitive with
Brazil, opportunities for Indian production of bio-ethanol must be analyzed in more detail in the light
of both future oil and ethanol markets. In a longer term, lignocellulose-to-ethanol is very promising
due to its independence from food markets. It is expected that the production cost will decrease as a
result of the research works undertaken in several countries. Finally, due to the higher potential of
CO2 emissions reduction of this pathway, use of Clean Development Mechanism (CDM) should be
envisaged to reduce its production cost.

https://www.jetir.org/papers/JETIRFJ06042.pdf

Working Paper Series no. 34 RP – Markets, Institutions and Policies

G Basavaraj, P Parthasarathy Rao, Ch Ravinder Reddy, A Ashok Kumar, P Srinivasa Rao and BVS
Reddy

The policy is thus sugarcane-centric which is counterintuitive to the policy recommendation of using
degraded and less fertile land for biofuel production. Sugarcane is a big beneficiary of subsidies on
fertilizer, pesticide and electricity for irrigation. The policy not only favors production of ethanol
from sugarcane through molasses but also recommends sugarcane juice as another option. While
mention is made of other feedstocks like sweet sorghum, sugar beet etc., prominence and a clear
roadmap are not specified. In view of the above, prioritization of alternative feedstocks to fulfill
targeted blending mandates is called for. Policies favoring alternative feedstock such as sweet
sorghum by capping a third of the 5-10% requirement will serve as an incentive. A small subsidy in
the initial years will go a long way in promoting alternative feedstocks which can supplement
ethanol production for blending requirements. The biofuel policy veers towards the supply side.
Demand side factors like providing consumption support also play a significant role in promoting
biofuels. Promoting of flex-fuel vehicles designed to use higher percentage blends of ethanol as in
Brazil, is a classic example. Similarly, reducing registration fees and road tax exemptions for vehicles
running on biofuels are common in many countries. Policy sops similar to the ones approved by the
MNRE for the dissemination and promotion of battery-operated vehicles (BOV) will also help in
promoting and sustaining the biofuel industry, and should be provided in the initial years (5-10) until
the industry becomes selfsustaining.