Ethanol production capacity in Maharashtra, Karnataka, Uttar Pradesh and other states exceeds state requirement
India’s ethanol production capacity has surged, with several states now exceeding local demand and assisting smaller regions. Ethanol production grew from 518 crore liters in 2017-18 to 1,623 crore liters by August 2024, driven by the government’s Ethanol Blending Program (EBP). India aims for 20% ethanol blending by 2025, requiring around 1,700 crore liters annually to meet targets.
The government’s initiatives have led to a steady increase in ethanol production capacity across the country, with several states now have more ethanol capacity than requirements.
According to the Department of Food and Public Distribution (DFPD), India’s Ethanol Blending Program (EBP) is progressing successfully. States such as Maharashtra, Karnataka, Uttar Pradesh, Punjab, Haryana, Sikkim, Bihar, and Madhya Pradesh have exceeded their ethanol production capacities, enhancing not only energy self-sufficiency but also empowering farmers. These states are also assisting smaller states with their ethanol supply needs.
As per DFPD, India’s ethanol production capacity has risen from 518 crore liters in 2017-18 to an impressive 1,623 crore liters in 2023-24 (As on 31st August 2024), demonstrating the government’s commitment to fostering a greener future.
The country has set target for a 20 per cent ethanol blending target by 2025. In August, ethanol blending in petrol reached 15.8 percent, and cumulative ethanol blending from November 2023 to August 2024 stood at 13.6 percent.
The government believes that the growing capacity will meet the country’s domestic ethanol needs. However, to achieve the 20% blending target, approximately 1,016 crore liters of ethanol will be required, totaling 1,350 crore liters when accounting for other uses. By 2025, it is estimated that an ethanol production capacity of around 1,700 crore liters will be necessary, assuming plants operate at 80% efficiency.
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