Ethanol is a significant biofuel to act as an alternative to fossil fuels. Fermented yeast creates raw ethanol. There are other procedures for producing ethanol. The sugar industry produces ethanol as a byproduct, predominantly made from molasses. The higher the sugar cane supply, the lower the prices. This affects the sugar industry, where there is a payment delay to the farmers. The Indian government introduced the “Ethanol Blending Petrol” (EBP) Program. The aim is to reduce pollution, reduce reliance on imports, boost the agriculture sector, clear the cane price arrears of farmers, conserve foreign exchange and address the long-term environmental concerns.
Launching of EBP Program
- The Centre launched several pilot projects in 2001. One of the projects involves combining 5% ethanol with gasoline and distributing it to a retail outlet.
- Launch of Ethanol Blended Petrol Program (EBP) in 2003.
- In 2005, a political party proposed mandatory ethanol, based on the Renewable Fuel Standard, to convert corn into fuel for replacing regular gasoline.
- Public Sector Oil Marketing Companies (OMCs) permitted the sale of 5% ethanol blended gasoline in nine states and four UTs in 2006.
- CCEA met in 2007 to discuss a mandatory 5% ethanol-to-petroleum blend.
- The Centre Reinstated a 10% mandatory blend in 2008.
- Low availability and other issues faced by each state slowed the progress of ethanol production in 2009.
- CCEA decided to purchase ethanol from domestic sources in 2013. Sugarcane prohibition resulted in a shift in ethanol production from molasses.
- In 2014, the government facilitated several initiatives to boost ethanol production. Initiates are to reintroduce the price mechanism, explore an alternate production route, and have regular discussions with state governments based on the ethanol blending roadmap.
- In 2018, the national biofuels policy stated a target of 20% ethanol blending in gasoline by 2030.
- Launch of the EBP Program in 21 states and four UTs On March 31, 2019. OMCs in the public sector bought and sold 10% ethanol blended gasoline.
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