9/17/2018 Why ethanol blending in petrol might not work for India - Livemint Home » Industry Why ethanol blending in petrol might not work for India India might be able to save on oil import costs by going for a greater petrol-ethanol mix, but that could strain the country’s water resources and affect food availability Last Published: Tue, Sep 04 2018. 11 55 AM IST Abhishek Jha Enter email for newsletter Sign Up In order to achieve 20% petrol-ethanol blend rate, almost one-tenth of the existing net sown area will have to be diverted for sugarcane production. Photo: Mint India should increase the use of biofuels to reduce dependence on oil imports, Prime Minister Narendra Modi and road transport and highways minister Nitin Gadkari have https://www.livemint.com/Industry/RfNU5ZFXDRTrfUkl9lNMaL/Why-ethanol-blending-in-petrol-might-not-work-for-India.html 1/7 9/17/2018 Why ethanol blending in petrol might not work for India - Livemint suggested on separate occasions. However, increasing the production of biofuels can strain India’s water resources and affect food availability. Among biofuels, ethanol appears to be the most viable alternative, and the government intends to raise ethanol blending in petrol to 20% by 2030 from the current 2-3%. Other biofuels, such as jatropha, have often proven to be commercially unviable. While India has become one of the top producers of ethanol in recent years, it lags top producers, the US and Brazil, by a huge margin and remains inefficient in terms of water usage. World's top fuel ethanol producers Fuel ethanol production (thousand metric tonnes) 2013 2014 2015 USA 41,507 Brazil 19,898 China Canada 2016 2,309 1,326 Thailand 748 France 740 Germany 654 Russia 480 Spain 351 Argentina 350 India 301 UK 257 Colombia 233 Belgium 224 Source: U.S. Energy Information Administration • Get the data • Created with Datawrapper Water footprint, that is water required to produce a litre of ethanol, includes rainwater at the root zone used by ethanol-producing plants such as sugarcane, and surface, ground water, and fresh water required to wash away pollutants. Estimates of water footprints are available from the Water Footprint Network. https://www.livemint.com/Industry/RfNU5ZFXDRTrfUkl9lNMaL/Why-ethanol-blending-in-petrol-might-not-work-for-India.html 2/7 9/17/2018 Why ethanol blending in petrol might not work for India - Livemint India's water requirements for producing ethanol are not met through rain water Green, blue, and grey water footprint (litre/litre of ethanol) Rain water in root zone of plant Surface and ground water f in Water for washing off pollutants 2,000 1,000 USA (Corn) Brazil (Sugarcane) India (Molasses) Source: Mekonnen, M.M. & Hoekstra, A.Y. (2011) The green, blue and grey water footprint of crops and derived crop products, Hydrology and Earth System Sciences, 15(5): 1577-1600. • Get the data • Created with Datawrapper India’s water footprint is not only high in overall terms, but India also uses more surface and ground water than the US and Brazil. Most of our daily uses of water come from this source. India has the least internal surface and ground water compared with both countries. While the US and Brazil have 2,818 billion cubic metres (BCM) and 5,661 BCM/year of water respectively, India has only 1,446 BCM per year, according to the Aquastat water statistics of the FAO (Food and Agriculture Organization of the United Nations) for 201317. While India’s internal surface and ground water availability is just one-fourth of Brazil’s, its usage of such water for ethanol fuel production is slowly catching up with that of Brazil -- and even exceeded Brazil in 2016—despite there being a huge gap in the ‘blend rates’. In India, the blend rate—the amount of ethanol mixed with petrol—is only 2-3%. For Brazil, which uses both an ethanol-petrol blend and just ethanol as fuel, the overall blend rate is 45-50%. India’s surface and ground water requirement will hugely exceed that of Brazil if India were to achieve its targeted 20% blend rate. https://www.livemint.com/Industry/RfNU5ZFXDRTrfUkl9lNMaL/Why-ethanol-blending-in-petrol-might-not-work-for-India.html 3/7 9/17/2018 Why ethanol blending in petrol might not work for India - Livemint India's surface/ground water requirement is already close to Brazil Surface/ground water requirement (million litres) for fuel ethanol production India 1,600,000 Brazil 48.8% 3.3% 45% 1,400,000 42% 49.3% 1,200,000 45.5% 40.3% 41.6% 36.9% 1,000,000 2.3% 2.0% 800,000 600,000 1.6% 1.8% 1.4% 1.4% 400,000 200,000 0.3% 0 2010 2011 2012 2013 2014 2015 2016 2017 % shown on lines correspond to the actual blend rate (overall for Brazil) for the year. Source: FAS-USDA, Water Footprint Network • Get the data • Created with Datawrapper In other words, while Brazil used 0.025% of its internal surface and ground water for ethanol production to achieve a 45% overall blend rate in 2017, India would use 0.701% even for 20%. India can surpass Brazil in surface/ground water requirements in future Surface/ground water requirement (million litres) for fuel ethanol production at different blend rates. 20,000,000 India (20%) 15,000,000 10,000,000 India (10%) India (5%) 5,000,000 0 2018 2019 2020 2021 2022 2023 2024 2025 Brazil (Projected) 2026 % shown on lines denote blend rates. The average of yearly projected overall blend rates for Brazil was 54.9. Source: FAS-USDA, Water Footprint Network • Get the data • Created with Datawrapper https://www.livemint.com/Industry/RfNU5ZFXDRTrfUkl9lNMaL/Why-ethanol-blending-in-petrol-might-not-work-for-India.html 4/7 9/17/2018 Why ethanol blending in petrol might not work for India - Livemint Water is not the only limited resource we have. Sugarcane currently accounts for around 3% of India’s net sown area. A simple calculation of extra area required for the 2010 to 2017 period shows that to raise the petrol-ethanol blend rate to even 10%, India will have to devote another 4% of its net sown area to sugarcane. In order to achieve 20% blend rate, almost one-tenth of the existing net sown area will have to be diverted for sugarcane production. Any such land requirement is likely to put a stress on other crops and has the potential to increase food prices. Achieving 20% blend rate would require India to divert an extra onetenth of its net sown area towards sugarcane Percent net sown area that would be required on top of existing sugarcane acreage at different blend rates 5% Blend 10% Blend 20% Blend 5.00 2011 2012 2013 2014 2015 2016 2017 Net sown area for India for this analysis was taken as the average of the net sown area from 2010-11 to 2013-14 (Source: 'Agriculture Statistics at a Glance 2016' - Ministry of Agriculture And Farmers Welfare). Yield of sugarcane and molasses obtained per tonne of sugarcane was approximated for each calendar year to the sugar year beginning in the year before that. A tonne of molasses was assumed to produce 250 million litres of ethanol, as reported by ISMA to Standing Committee on Petroleum & Natural Gas. Source: Indian Sugar Mills Association (ISMA), Ministry of Agri & Farmers Welfare • Get the data • Created with Datawrapper India’s biofuel policy stipulates that fuel requirements must not compete with food requirements and that only surplus food crops should be used for fuel production, if at all. Producing ethanol from crop residue will then be a good alternative, except that the annual capacity of required bio-refineries is stipulated to be 300-400 million litres, which is still not enough to meet the 5% petrol-ethanol blending requirement. “If that technology picks up, it will be a gamechanger, but with just 1G (first generation biofuels, such as sugarcane-based ethanol), I don’t see how we can meet our demands,” said Ramya Natarajan, senior research engineer, Centre for Study of Science, Technology and Policy. Increasing petrol-ethanol blending, therefore, does not seem viable in the current scenario, unless concerted efforts are made to either increase sugarcane yield and decrease water usage through better irrigation practices, or increase the ethanol https://www.livemint.com/Industry/RfNU5ZFXDRTrfUkl9lNMaL/Why-ethanol-blending-in-petrol-might-not-work-for-India.html 5/7 9/17/2018 Why ethanol blending in petrol might not work for India - Livemint production capacity of bio-refineries. Trying to increase blending without these efforts can encroach upon land and water available for food production. Abhishek Jha is a recipient of the Mint-Hindustan Times-HowIndiaLives Data Journalism Fellowship 2018. First Published: Tue, Sep 04 2018. 09 53 AM IST TOPICS: PETROL ETHANOL PETROL ETHANOL BLENDING PETROL ETHANOL MIX INDIA OIL IMPORTS EDITOR'S PICKS » The rupee’s relentless slide: Back to the future? 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