February 11, 2016
Sugaronline | http://goo.gl/D4jC3l
Public sector oil marketing firms will procure 1.20 billion litres of ethanol to reach the target of 5% blending for petrol by September 2016, according to India's The Hindu newspaper.
"Last year, we procured about 670 million litres. But this year we will get 1.20 billion litres and maybe even higher. This would help in about 5% blending for petrol. For several years we were stuck at 1-2% but this year we will achieve the target," said Dharmendra Pradhan, Minister of State (Independent Charge) for Petroleum and Natural Gas, said after inaugurating a national seminar on ethanol.
Pradhan said that in states like Uttar Pradesh, the blending levels can go up to 10% which would benefit the farmers.
"PSUs are in the process of increasing the storage capacity for ethanol. This year we have also started procuring bio-diesel. Out of 850 million litres that was tendered for procurement, 40 million litres has come in already. In the next step, we want farmers to produce ethanol from different feedstock like wheat straw, rice straw, corn straw and others," said Pradhan.
Currently, the production cost of ethanol is INR42 (US$0.65) per litre. Asked whether at current crude oil prices, ethanol blending makes sense, Pradhan said, "Government policy can't be set on spot prices. Technology drives prices down and we will see the same here."
Meanwhile, Pradhan said after discussions with the Automotive Research Association of India it has been found that blending can be raised till 15-20% for both ethanol in petrol and bio-diesel in regular diesel without a major change in existing car engines.
"For agricultural water pumps, the blending can even be 100% of bio-diesel," he added.
The Minister said that the International Energy Agency estimates India's crude oil imports to rise till 550 million tonnes by 2040 and increasing use of bio-fuels will help reduce the import dependence as well as benefit the farmers.