India recently achieved a mark of more than 18 percent ethanol blending in December 2024. And that too under the Ethanol Supply Year (ESY) 2024-25. The Government of India initially set this target for the year 2030. However, seeing the successful implementation of the project, the target was revised to be achieved by the end of the current year. We are growing towards that goal at full capacity. Since the contemporary goal is achievable, we think it is the right time to set new goals. Some of the major ethanol plant manufacturers in India have done exceptionally well as the industry appreciated the government initiative.

Government initiatives like the Ethanol Blended Petrol (EBP) programme changed the whole paradigm of biofuel utilisation across the nation. There are many speculations among ethanol manufacturing giants that since we are almost there to achieve the 20% blending, it is probably the best time to look beyond that and think about other expansion plans. Some of the significant ones are-

1. Diversify Investment Portfolio

As the ethanol blended petrol’s use is increasing, the need to invest in subsidiary domains becomes equally important. For example, high quality ethanol manufacturers and other involved companies would require more blending facilities and storage infrastructure. Resolving their scarcity issue will result in getting rid of logistical bottlenecks that result in smooth operations of the supply chain.

2. Embrace Advanced Technology

There is no denying that ethanol blending is anyway leveraging state-of-the-art technology to procure high-quality biofuel. But with an adoption of 2G ethanol production from agricultural residues, there will be no leftovers that go to waste. Cutting down on waste is anyway vital to ensure that staple food crops (like maize) don’t get displaced.

3. Transition to Green Transportation

It becomes imperative that the government and ethanol plant manufacturers in India join forces to promote flex-fuel vehicles or FFVs as well as hybrid electric vehicles or HEVs. The reason is that these manufacturers have proved their capability of achieving higher ethanol blends. It is an ideal approach to support the nation’s transition to greener transportation. And who doesn’t like enhanced energy efficiency?

Conclusion

In addition to all these minor steps, the GoI also needs to focus on providing subsidies to the farmers. It is crucial for an additional ethanol production capacity. If all these steps are taken in this direction, achieving the long-term vision of sustainable energy growth will not seem far.