India to surpass China as 3rd largest user of Ethanol

Subject – Environment

Context – India to surpass China as 3rd largest user of Ethanol

Concept –

India is on course to race past China as the world’s third largest ethanol consumer by 2026 as it accelerates the transformation towards a clean energy ecosystem.
Ethanol demand in India tripled between 2017 and 2021 with consumption expected at 3 crore litres in the last calendar year, the International Energy Agency (IEA) said.
In January 2021, India brought forward its target of 20 per cent ethanol blending of gasoline to 2025 from 2030, and is aiming to start selling 20 per cent blends in 2023.
IEA added that the country is supporting ethanol as it helps reduce oil imports, cut down air pollution and offers economic and employment opportunities for farmers.
Lifting ethanol demand is also aligned with its net zero pathway.
India, the world’s third largest oil importer and consumer, imported petroleum products worth more than ₹1.09-lakh crore in FY21.
At present, public sector oil marketing companies are selling 10 per cent ethanol blended petrol. Similarly 5 per cent biodiesel is blended as per availability.

To know about Ethanol, please refer October 2021 DPN.

To know about National Policy on Biofuels, please refer August 2021 DPN.

To know about India’s ambitious ethanol plan, please refer October 2021 DPN.