Biofuel pledge at climate summit highlights India’s ethanol blending debate

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BENGALURU, India (AP) — India's push to blend ethanol with gasoline shows the benefits and challenges of the sustainable fuel efforts being showcased at global climate talks this week.

Earlier this year, the Indian government announced that it achieved its goal of mixing 20% of the plant-based fuel with gasoline five years ahead of schedule. The world's most populous country is joining Brazil, Japan and Italy to promote ethanol and other biofuels as part of the Belem 4x initiative.

The initiative, being showcased Friday at the COP30 climate summit, provides political support for expanding biofuels and relatively low-emission hydrogen-based fuels. Brazil, long a biofuel leader, commonly sells a 27% ethanol blend and its government recently announced plans to increase the percentage.

India's rapid ethanol shift shows challenges other countries could face. While the Indian government said ethanol usage reduces pollution, some users said it is affecting their mileage and damaging older engines. Most fuel pumps in India now sell the 20% ethanol blend or unblended gasoline that’s nearly twice as expensive. Lower ethanol blends are being phased out.

Environment experts also said grain production for ethanol can displace food crops and sometimes generates more planet-warming gases than it saves.

Ethanol, typically made from corn, sugarcane or rice, is considered cleaner than petroleum-based gasoline. The Indian government said its blending program has already cut carbon emissions by 74 billion kilograms (163 billion pounds)— equivalent to planting 300 million trees — and saved over $12 billion in oil imports in the last decade.

“I think it’s good for the environment,” said Vijay Ramakrishnan, a businessman in Chennai. “But I’ve noticed a drop in mileage in my vehicle in recent months. Given how expensive fuel already is this further drop is only adding to my costs.”

Ramakrishnan, who commutes over 100 kilometers (62 miles) daily, wants the government to offer more fuel choices.

Amit Khare, who runs a popular YouTube channel on automobiles, said many followers complain about a significant drop in mileage from E20. Some owners of older cars have told him that they are having engine trouble.

“E5 is the best fuel, E10 is manageable, but E20 has given a lot of trouble,” he said.

Ramya Natarajan of the Bengaluru-based Center for Study of Science, Technology and Policy said ethanol can be good for some engines if they are compatible, but agreed that it can reduce mileage.

Farmers said they need clarity on government procurement plans for ethanol production. Ramandeep Mann, a farmer in India's northern Punjab state, said farmers significantly increased corn acreage last year in hopes of selling it for fuel, but the price dropped after the government allocated large amounts of rice to ethanol makers.

The amount of ethanol blended with gasoline in India grew from 8% to 20% in the last five years. Most of the ethanol now comes from grains, as opposed to the sugarcane, its traditional source.

Mann said prices for sugarcane have also dropped this year. He said it’s good that the government is tackling climate change, but it should put farmers and their prices ahead of ethanol mandates.

Previously, surplus crops not needed for food were the primary source of India's ethanol, but that's beginning to change, according to Natarajan of CSTEP. “With the push for E20 blends or even more, a lot more area has to be cultivated which in turn means it’ll be replacing other crops,” she said.

Climate experts said biofuel production can have minimal environmental impact when it’s made from waste or inedible vegetation and processed in facilities that run on clean energy. But when crops are grown explicitly for biofuels, it has a higher carbon footprint because of the fertilizer and fuel involved.

India’s ethanol strategy is part of a broader effort to reduce emissions, cut oil imports and boost agriculture, said Purva Jain, an energy specialist at the Institute for Energy Economics and Financial Analysis.

But she said a faster transition to infrastructure for electric vehicles might be better. A 2022 study by her organization found that installing solar power for EV charging can be a much more efficient land use than growing crops for biofuel.

However, ethanol producers have invested significant sums in manufacturing and need a steady, growing market for their product now, said CK Jain, president of the Grain Ethanol Manufacturers Association. He said India should increase the percentage of ethanol mixed with gas and encourage the sale of compatible vehicles.

“We need to have higher blending as soon as possible, otherwise the industry will go into deep financial trouble,” Jain said.

Other experts advocated for a middle ground.

A 10% blend of ethanol with gasoline, can be a “win-win” solution said Natarajan of CSTEP. She said that would allow for use of existing crops without putting too much pressure on increased cultivation.

Khare, the YouTube influencer, said keeping lower blends available would help older vehicles.

“The government can bring E20 or even up to E85 programs on top of that, that’s completely fine. But consumers need to be given the option,” he said.

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