Government working to allow ethanol blending beyond E20 via flexi-fuel vehicles: Tarun Kapoor
India's ethanol production capacity has exceeded the requirement for the current E20 blending target, prompting the government to look for additional uses for surplus ethanol.
A senior petroleum ministry official, speaking at the India Sugar and Bio-Energy Conference 2026 in New Delhi, said the next phase of blending beyond 20% will need to be linked to Flex-Fuel Vehicles (FFVs) capable of running on higher ethanol concentrations.
The E20 programme was described as successful, with several automobile manufacturers having announced plans to roll out FFVs; studies were cited showing E20 fuel works well, with a marginal decline in fuel efficiency offset by the fuel's higher octane rating.
Expansion of E20-plus blending will require parallel expansion of pure/high-concentration ethanol availability at retail fuel outlets alongside the FFV rollout.
The government is also examining alternative uses for surplus ethanol beyond transport fuel, including cooking fuel applications, industrial use, and complementary products such as compressed biogas (CBG).
National Policy on Biofuels (2018) and its 2022 Amendment
India's biofuel policy framework was first notified in 2018 by the Ministry of Petroleum and Natural Gas to cut crude oil import dependence, boost farmer income, and reduce vehicular pollution through domestically produced ethanol and biodiesel. It was amended in June 2022 to advance the target of achieving 20% ethanol blending in petrol (the "E20" target) from 2030 to 2025–26, and to widen the range of feedstocks eligible for ethanol production (including surplus/damaged food grains, sugarcane juice, and maize, in addition to molasses). India officially achieved the 20% ethanol-blending milestone in 2025, ahead of the original 2030 deadline.
Key Details
- Original National Policy on Biofuels: 2018.
- Amendment: June 2022 — advanced E20 target from 2030 to 2025–26.
- E20 target achieved nationally: 2025.
- Additional feedstocks permitted post-2022: damaged food grains, maize, sugarcane juice (besides sugarcane molasses).
- Administering body: Ministry of Petroleum and Natural Gas, coordinated via the National Biofuel Coordination Committee (NBCC).
Having hit the E20 target early, ethanol production capacity built up for that goal is now running ahead of blending demand, which is why the government is examining both a higher blend ceiling (via FFVs) and non-fuel uses for the surplus — a direct policy consequence of the accelerated 2022 target.
Flex-Fuel Vehicles (FFVs) and Ethanol-Blended Fuel Technology
A Flex-Fuel Vehicle is designed with an engine and fuel system capable of running on varying ratios of petrol and ethanol — from pure petrol up to very high ethanol content (e.g., E85 in some markets) — using a fuel sensor that automatically adjusts the engine's air-fuel mixture and ignition timing. This differs from conventional vehicles, which are typically certified for a fixed maximum blend (currently E20 in India) and may face engine/fuel-system compatibility issues at higher ratios. NITI Aayog and the petroleum ministry have promoted FFV rollout as the technological enabler for blending beyond E20, since ordinary vehicle fleets are not engineered for higher ethanol concentrations.
Key Details
- E20 fuel: a blend of 20% ethanol with 80% petrol; achieved nationally in 2025, five years ahead of the original 2030 target.
- FFVs can typically run on blends up to E85 (some global standards) though India's rollout is calibrated to its own blend roadmap.
- Ethanol has a higher octane number than petrol, which can offset the slightly lower energy content (lower calorific value) that causes marginal efficiency loss.
The article's central point — that ethanol blending beyond E20 will only be workable "via" FFVs — reflects this vehicle-technology dependency: pushing blend ratios higher without FFVs risks damaging conventional engines not designed for high ethanol content.
Ethanol Blended Petrol (EBP) Programme and the Food Security vs Fuel Security Debate
The EBP Programme, administered by the Ministry of Petroleum and Natural Gas together with oil marketing companies (OMCs), governs procurement and blending of ethanol into petrol nationwide. A long-standing policy debate concerns feedstock choice: ethanol from foodgrain-based sources (rice, maize, damaged grains) competes with food security and public distribution priorities, while sugarcane-molasses-based ethanol depends on sugar cycles and water-intensive cultivation, raising separate ecological concerns (particularly in water-stressed states). The 2022 amendment to the Biofuels Policy explicitly widened permitted feedstocks, intensifying this debate as capacity is now oriented toward multiple grain and non-grain sources.
Key Details
- EBP Programme: implemented via oil marketing companies (IOCL, BPCL, HPCL) under Ministry of Petroleum and Natural Gas oversight.
- Feedstocks: sugarcane juice/molasses (C-heavy, B-heavy molasses), damaged foodgrains, surplus rice (via FCI), maize.
- Compressed Biogas (CBG): promoted under the SATAT (Sustainable Alternative Towards Affordable Transportation) scheme as an additional outlet for biomass/ethanol-adjacent feedstock value chains.
The push to find non-transport uses for surplus ethanol (cooking fuel, industrial use, CBG) is a direct response to production capacity now outstripping blending demand, and ties into the recurring UPSC theme of balancing biofuel expansion against food-grain diversion and water-use concerns.
- National Policy on Biofuels: notified 2018; amended June 2022 (advanced E20 deadline from 2030 to 2025–26).
- India achieved the 20% ethanol-blending (E20) target nationally in 2025.
- Administering ministry: Ministry of Petroleum and Natural Gas; coordinating body: National Biofuel Coordination Committee (NBCC).
- Statement made at: India Sugar and Bio-Energy Conference 2026, New Delhi, 9 September 2026.
- Post-2022 feedstock expansion for ethanol: damaged foodgrains, maize, sugarcane juice (in addition to molasses).
- Alternative surplus-ethanol uses under consideration: cooking fuel, industrial applications, compressed biogas (CBG) and other biofuel products.