Need Policy for Affordable Bioethanol

Need Policy for Affordable Bioethanol

Sub: Env

Sec: Sustainable Dev

Why in News?

• Honda Motor Co. Ltd.’s has urged the Indian government to create policies to make bioethanol more affordable, addressing its economic viability and promoting its adoption for carbon neutrality goals.

Context

India is advancing toward carbon neutrality by focusing on bioethanol fuels and renewable energy. However, high costs of bioethanol and low fuel efficiency hinder its widespread adoption, requiring policy intervention for affordability.

Honda can leverage its Brazil’s experience, since Honda launched CBF300 Flex Fuel in India to promote ethanol-based mobility solutions.

Key Highlights 

Advantages of Bioethanol

• Reduces carbon emissions effectively.
• Provides socio-economic benefits by supporting rural communities and farmers.
• Compatible with existing gasoline distribution infrastructure, ensuring easy availability.
• Farmers’ upliftment: Ethanol production benefits rural farmers.
• Helps India achieve carbon neutrality commitments while addressing fuel affordability.

Challenges Identified

High running costs:

• Current price of E100 ethanol fuel: ₹95/litre.
• Needs reduction to ₹65/litre for competitive pricing against gasoline.
• Low fuel efficiency of ethanol-based vehicles raises costs for users.
• Policy Recommendations
• Price Reduction Measures:
  • Lower taxes on ethanol to make it affordable.
  • Establish a government mechanism to maintain affordability.
• Improving Fuel Efficiency:
  • OEMs must develop vehicles with enhanced ethanol mileage.
• Incentivize Adoption:
  • Encourage flex-fuel vehicle production and deployment.
  • Ethanol as Complement to Electrification
  • Both flex-fuel vehicles and electric vehicles (EVs) are essential for India’s long-term decarbonization goals.
  • Renewable energy adoption will boost the eco-friendliness of EVs.

What is Bioethanol?

Bioethanol is an alcohol-based biofuel produced through the fermentation of sugars derived from crops like sugarcane, corn, wheat, and barley. It is a sustainable alternative to fossil fuels, as it is made from biomass that can be replenished over time.