The ethanol blending percentage has surged from 1.53 per cent to 15 per cent in the last 10 years, Union Petroleum Minister Hardeep Singh Puri said on Monday, emphasising that bioenergy is increasingly becoming a crucial alternative to fossil fuels, offering both environmental benefits and economic opportunities, particularly in rural areas.

Encouraged by this progress, the government has set an ambitious target of reaching 20 per cent blending by 2025 and is confidently progressing towards this goal, said Minister Puri at the inaugural session of the ‘India Bio-Energy and Tech Expo 2024’ (IBETE).

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Over the past decade, the ethanol blending programme has delivered significant benefits, including saving Rs 99,014 crore in foreign exchange, reducing CO2 emissions by 519 lakh metric tonnes, and substituting 173 lakh metric tonnes of crude oil.

Furthermore, the programme has had a considerable economic impact, with oil marketing companies disbursing Rs 1,45,930 crore to distillers and Rs 87,558 crore to farmers, the minister informed.

According to Petroleum Minister, a major milestone in ethanol fuel expansion is the successful launch of E100 fuel at over 400 retail outlets across the country.

He urged Nitin Gadkari, Union Minister of Road Transport and Highways, to encourage automobile manufacturers to produce vehicles compatible with E100 fuel.

In his address, Minister Puri elaborated on the Indian government’s strategic efforts to advance the bioenergy sector, highlighting its significance in reducing import dependence, saving foreign exchange, and promoting a circular economy.

The government’s strategy encompasses several vital areas, including ethanol and biodiesel blending, compressed biogas (CBG), sustainable aviation fuels, biomass utilisation (such as pellets and briquettes), biohydrogen and waste-to-energy solutions.

The minister also highlighted the widespread availability of E20 fuel, which is now offered at over 15,600 retail outlets across India.

He commended the ‘Pradhan Mantri JI-VAN Yojana’ for its essential role in providing financial support to advanced biofuel projects, which is crucial for developing a sustainable ethanol production ecosystem.

To further support the ethanol industry, the government has introduced various incentives, like Rs 9.72 per litre for ethanol derived from maize, Rs 8.46 per litre for ethanol from damaged rice and Rs. 6.87 per litre for ethanol from C-heavy molasses.