Grain-based ethanol: Driving India’s clean energy revolution and the future of sustainable mobility
India aims to cut carbon emissions by 50% by 2030 and reach net zero by 2070, placing clean energy at the forefront. Grain-based ethanol, made from corn, broken rice, and wheat, supports this goal by reducing fossil fuel use, aiding farmers, and advancing rural growth and green mobility.
India’s steadfast pledge to reduce carbon emissions by 50 per cent by the year 2030 and achieve net zero by 2070 places clean energy technologies at the core of its sustainable development agenda. Among these, grain-based ethanol has emerged as a pivotal fuel in the country’s decarbonisation strategy, which binds together agricultural policy, climate action and the rapid evolution of transportation technologies.
Ethanol derived from starch-rich grains such as corn, broken rice and wheat offers a remarkable renewable alternative to fossil fuels while converting agricultural surplus into economic opportunity for farmers and environmental benefit. This dynamic fuel source is boosting India’s rural economy and shaping the future of e-mobility.
Rising production and capacity
India’s ethanol production capacity has grown significantly in recent years. As of June 2025, the country has an ethanol production capacity of approximately 18.2 billion litres, supported by 499 operational distilleries strategically located across key states. Grain-based ethanol accounts for nearly 65-70 per cent of this total, underscoring its strategic role within India’s ethanol feedstock mix that also includes sugarcane molasses and other raw materials.
Government push and policy impact
States such as Uttar Pradesh, Maharashtra and Karnataka lead ethanol production, with Uttar Pradesh alone producing more than 2 billion litres annually. This reflects the strong industrial infrastructure driving the green energy surge. The government’s Ethanol Blended Petrol (EBP) program has been a major driver, increasing the ethanol blending rate to nearly 20 per cent of gasoline consumption in early 2025. This achievement is close to meeting India’s E20 target and moves the country toward cleaner transportation fuels. In June 2025, ethanol blending touched 19.5 per cent, thanks to India being a grain-surplus country, according to a report by S&P Global.
The success of this programme relies heavily on diversified feedstocks. The Food Corporation of India allocated a record 5.2 million tonnes of rice for ethanol production in 2024-25, significantly contributing to blending targets. This ensures strategic use of surplus grains and broken rice, preventing wastage and using maize while offering farmers new income opportunities.
Environmental and economic impact
Grain-based ethanol delivers substantial environmental benefits. As a clean-burning renewable fuel, it reduces harmful emissions such as carbon monoxide, volatile organic compounds and particulate matter when blended with petrol. This directly improves urban air quality and mitigates climate change impacts from the transport sector, which accounts for nearly 13 per cent of India’s carbon emissions.
India’s decade-long EBP campaign has delivered notable results, including saving over ₹1,08,655 crore in foreign exchange by substituting crude oil and reducing CO₂ emissions by 557 lakh metric tons. Beyond environmental gains, it has strengthened rural economies by generating employment and attracting investments in ethanol plants, with ₹1,45,930 crore disbursed to distilleries and ₹87,558 crore to farmers.
To further strengthen and secure the ethanol supply chain, the program actively promotes feedstock diversification rather than relying on a single raw material. This approach involves incorporating multiple sources such as “B heavy” molasses, maize and broken rice to ensure a steady and sustainable flow of raw materials. Among these options, maize has emerged as a significant contributor within the grain category, largely because of its relatively lower water footprint compared to other crops, making it an environmentally favorable choice. Additionally, maize cultivation is widespread among farmers across the country, providing both tremendous economic opportunities for the agricultural sector and enhancing the resilience of the ethanol production system against fluctuations in the availability or price of any one feedstock.
Supporting a circular economy
The production process also generates Distillers Dried Grains with Solubles (DDGS), a high-protein animal feed that strengthens livestock nutrition and supports agricultural sustainability.
Catalysing India’s e-mobility transition
Ethanol contributes to immediate emission reductions through fuel blending while supporting India’s broader transition to electric mobility. Given the current limitations of EV infrastructure, ethanol-powered flex-fuel and hybrid vehicles act as a crucial transitional technology.
India is promoting technologies that enable vehicles to run on high ethanol blends such as E20 and E85. These flex-fuel vehicles reduce dependence on fossil fuels and lower carbon footprints. Hybrid vehicles that combine electric propulsion with ethanol engines further optimise fuel efficiency and emissions, balancing economic and environmental priorities in a transport ecosystem still facing infrastructure gaps.
The road ahead
Beyond environmental benefits, grain-based ethanol enhances energy independence by reducing crude oil imports, a critical factor for India as the world’s third-largest oil importer. By replacing fossil fuels, utilising agricultural surpluses and supporting flex-fuel and hybrid technologies, grain-based ethanol plays a central role in India’s clean energy future. It represents a strategic intersection of environmental sustainability, energy security and rural empowerment.
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Source : The Hindu Businessline
