Ethanol glut spurs flex-fuel demand
Indian Sugar and Bio-Energy Manufacturers Association has urged the government to include stronger incentives for flex-fuel vehicles in CAFE-3 norms, warning of surplus ethanol capacity beyond E20 demand. The move aims to boost ethanol consumption and align with India’s roadmap toward higher blends like E25.
With the draft Corporate Average Fuel Efficiency (CAFE-3) norms under discussion, the Indian Sugar and Bio-Energy Manufacturers Association (ISMA) has urged the government to incorporate stronger incentives for flex-fuel vehicles (FFVs), arguing that the ethanol industry is facing a growing surplus capacity beyond projected E20 demand.
In a letter dated April 13 to Power Secretary Pankaj Agarwal, ISMA Director General Deepak Ballani said that provisions promoting flex-fuel vehicles and electrified flex-fuel vehicles should be explicitly included in the CAFE-3 framework. The association has flagged that unless vehicle technology adoption accelerates, the country risks significant excess ethanol supply in the coming years.
The intervention comes at a time when the government, in consultations with the automobile industry on draft CAFE-3 norms, is considering the introduction of E25 fuel blends in the near future as part of India’s broader ethanol blending roadmap.
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Source : The Hindu Business line
