Govt to launch E85 fuel with 85% ethanol, challenge oil dependence

By Rakesh Sharma

 

India is set to launch a new high-ethanol fuel blend in the market, its latest effort to diversify supplies and reduce the country’s reliance on imported oil. 

Oil Minister Hardeep Puri will introduce the fuel later on Friday at an Indian Oil Corp.’s outlet in New Delhi, to be initially sold at 50 pumps in the country.

 

The South Asian nation currently sells 20 per cent ethanol-blended gasoline, or E20, across its retail fuel network. The new blend, called E85, will contain about 85 per cent ethanol and pollute less than its conventional counterparts. 

 

India’s transition to electric mobility has so far been slow due to the high cost of vehicles and limited charging infrastructure. Policymakers see the deployment of vehicles compatible with hybrid fuels as a faster, complementary pathway that requires modest infrastructure investment compared to nationwide EV charging networks. Wider adoption, however, may depend on E85 fuel being priced competitively against E20 gasoline.

 

 

Ethanol is derived from agricultural feedstocks such as sugarcane, rice and corn, and is used to produce alcoholic beverages, pharmaceuticals and chemicals. Still, its single biggest usage in India is fuel blends, which in higher concentrations could boost demand for farming byproducts and support rural incomes.

 

India’s consumption of gasoline, mostly used for two-wheelers, has risen by an annual average of 9 per cent over the last five financial years, lifting oil imports.  

 

Earlier this week, Puri presented new E85-compatible variants of Hero MotoCorp Ltd.’s motorcycles and Maruti Suzuki India Ltd.’s Wagon R hatchback, indicating the government’s intent to help build a transport ecosystem to support higher ethanol use. The government is mulling policy measures to accelerate the adoption of hybrid-fuel vehicles, according to Puri.

 

The new fuel enters the market amid lingering concerns over the impact of ethanol blends on mileage and engine durability. The oil ministry said last year that E20 gasoline offers better acceleration, improved ride quality and lower carbon emissions compared with conventional fuel, qualities that the new blend is expected to enhance.