India Set to as the Third Largest Ethanol Consumer by 2026

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According to the International Energy Agency (IEA), India will overtake China to become the third largest ethanol consumer by the year 2026.

The International Energy Agency (EA) report also mentioned that the demand for ethanol in India has tripled between 2017 and 2021. 30 million liters of ethanol is estimated to be consumed in the last calendar year.

Ethanol is a renewable fuel. It is made from various plant materials collectively known as biomass.

It is a clear and colorless liquid. It has a higher octane number (ON) than gasoline, which provides better mixing properties.

The octane number (ON) is a measure of the quality or performance of gasoline. The higher this number, the better the combustion of the fuel is considered.

India has resolved to become carbon neutral by the year 2070. For this 20% ethanol will be mixed in gasoline. The stipulated period for this mix target was earlier 2030, which has been reduced to 2025. Along with this, a target has also been set to start selling fuel containing 20% ​​ethanol in the year 2023.

India is on track to achieve 10% blending this calendar year.

Importance of Ethanol Mixture:

  • It will help in reducing oil imports.
  • It helps in reducing air pollution.
  • It provides economic and employment opportunities to the farmers.


  • Vehicle Compatibility: Compatibility issues may occur in existing vehicles with fuel mixtures higher than E10.
  • Greenhouse gas (GHG) and sustainability criteria.
  • Feedstock availability.
  • Maintaining incentives at an appropriate level.

Steps taken to boost Ethanol economy

  • Guaranteed price per liter of ethanol as per feedstock.
  • Financial assistance is being given for new ethanol capacity.
  • A plan has been chalked out to make flex-fuel vehicles mandatory. Such vehicles are well suited to high ethanol blends.

Source – The Hindu

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