India becomes world’s 3rd largest biofuel producer

India has emerged as the third-largest biofuel producer globally, reinforcing its commitment to clean energy and sustainability, Petroleum and Natural Gas Minister Hardeep Singh Puri announced on Monday.

In a post on X (formerly Twitter), Puri highlighted that India achieved a 19.6% ethanol blending rate in petrol as of January 2024 and is on track to reach 20% blending well ahead of its 2030 target. This achievement is expected to reduce fuel imports and lower emissions significantly.

Ethanol blending and economic impact

Over the past decade, India’s ethanol blending program has benefited both the economy and the environment. Key impacts include:

• Increased farmer incomes as ethanol is produced from sugarcane.
• Boosted rural employment through ethanol production plants.
• Reduced CO₂ emissions, equivalent to planting 1.75 crore trees.
• Saved ₹85,000 crore in foreign exchange by reducing crude oil imports.

Public sector oil companies such as Indian Oil, Bharat Petroleum, and Hindustan Petroleum have played a leading role in expanding ethanol blending across the country.

Expansion of ethanol production and infrastructure

To scale up ethanol production, oil marketing companies (OMCs) have signed agreements with 131 ethanol plants, which will add a design capacity of 745 crore litres per year. Additionally, OMCs have invested in storage facilities and infrastructure to support higher ethanol blending levels.

Puri also noted that E100 fuel (100% ethanol) is now available at 400+ fuel stations across India, marking a significant step towards a greener future.

E100 fuel: A cleaner alternative

Launched at 183 Indian Oil outlets in March 2024, E100 fuel is ideal for high-performance engines due to its high-octane rating (100-105). It offers:

• Improved fuel efficiency and power output.
• Lower environmental impact.
• Compatibility with flex-fuel vehicles, which can run on gasoline, ethanol, or blends of both.

India’s growing energy influence

Highlighting India’s rise in the global energy sector, Puri noted that:

• India is now the 4th largest country in LNG terminal capacity, ensuring stable energy supply.
• The country ranks 4th in global refining capacity, solidifying its status as a major energy hub.
• India has become the 7th largest exporter of refined petroleum products, strengthening its position in global trade and fuel security.

“From the quiet town of Digboi to the world’s top energy markets, India’s petroleum journey is a story of resilience and progress,” Puri said, crediting Prime Minister Narendra Modi’s leadership for the country’s advancements in the energy sector.