Government Eyeing Policy to Boost Adoption of E85 Fuel in India
India's government is pushing for a policy that supports the adoption of E85 fuel (85% ethanol blended petrol) as a cleaner alternative. This initiative aims to lower costs, boost ethanol demand, and support farmers economically.
Highlights
- •Government considering policy for accelerated affordable E85 adoption
- •Promoting ethanol-blended fuels including the first flex-fuel motorcycles in India
- •Minister Puri reveals 1% E85 adoption could generate significant ethanol demand
- •Amendments to vehicle emission rules to allow wider use of ethanol blends
New Delhi: The government is examining a supportive policy aimed at accelerating the affordable adoption of E85 fuel, an 85% ethanol-blended petrol. This move underscores India's commitment to sustainable energy solutions as Minister Hardeep Singh Puri announced during an event organized by Hero MotorCorp.
Boosting Ethanol-Rich Fuels
E85 promises to be significantly cheaper than traditional fuels, a shift that could reduce dependency on imported crude oil. The unveiling of India's first flex-fuel motorcycles compatible with ethanol blends from E20 (20% ethanol) to E85 represents a significant step in embracing cleaner energy alternatives.
According to Minister Puri, even a 1% adoption of E85 by 2026-27 would generate an ethanol demand of 4 crore litres, transforming the fortunes of Indian farmers from providers of food to those who potentially supply fuel.
The Ministry of Road Transport and Highways has proposed amendments to vehicle emission rules to include higher ethanol blends and alternative fuels. This includes plans for E85 (a 85% ethanol blend with petrol) and nearly pure ethanol, paving the way for flexible-fuel and biofuel vehicles across various categories.
Additionally, Union Minister Nitin Gadkari brought up the issue of high GST rates on fuel blends greater than 20%, aiming to reduce taxes. The finance minister assured that they would discuss these higher taxes on E30 and above with state governments during the GST Council meeting.
This move towards ethanol-rich fuels aligns with India's broader strategy to diversify its energy portfolio, promote sustainable agricultural practices, and reduce carbon emissions.
