PHDCCI Hosts International Summit on Bioethanol as an Alternative to Gasoline and LPG

Realising the importance of bioethanol as a promising alternative to gasoline and LPG, leading trade body PHDCCI organised a day-long International Climate Summit in New Delhi on Friday. Speaking as the Chief Guest at the inaugural session, Union Minister for Road, Transport, and Highways Nitin Gadkari said the government was striving to protect both environment and ecology. Stressing the importance of bioethanol, he said the government imports fossil fuel worth Rs 1.25 lakh crore every year and use of biofuel can cut down the import cost.

He said thermal power plants generate carbon dioxide which pollute the air, while the transport sector accounts for 40% of air pollution. Gadkari said disposal of both solid and liquid waste was a big challenge before the government and cited the example of Ghaziabad waste dump on the outskirts of the national capital. By segregation of plastic from garbage, ethanol can be made from the organic materials, he said, adding that plastic thus removed from garbage can be used for bitumen.

Describing the use of bioethanol as a win-win situation, Gadkari said it had three main benefits -- generating employment in rural areas, reducing import of biofuel, and addressing pollution problems. The minister lauded the PHDCCI for its untiring efforts to promote the use of bioethanol. In his welcome address, Senior Managing Director and CEO of DCM Shriram Industries Ltd, Alok B. Shriram, said hydrogen will be the major element of the solution of the future for humanity.

Each country and region has to find solutions based on their situation, strengths, and weaknesses. "It is keeping this in mind that I believe that bioethanol, especially using dented corn, for India is an excellent option," he said.

Shriram, a former PHDCCI President, said bioethanol, especially from dented corn, is a crop which is green, renewable and will help the farming community. The water requirement of dented corn is much less than alternative crops and the starch content is higher. Moreover, there are large capacities for ethanol distillation in the country.

Setting the tone for the Summit, Dr J P Gupta Summit Chair and Chair - Environment and Climate Change Committee, PHDCCI, said bioethanol is renewable, clean, and cost-effective, presenting an important pathway for energy security and decarbonisation. Doping ethanol with petrol supplies extra oxygen for complete combustion, reducing carbon monoxide levels in auto emissions and interfaces, he said.

Delivering the key note address, Dr Sadesh Sookraj, Global Decarbonisation Advisor, IFC (Washington), a part of World Bank, cautioned that increasing temperature will have a severe impact as agriculture output will decrease, sea level will increase and cost of living will be higher because rising temperature permeates through all sectors.

He said bio-economy was very important otherwise who will pay for climate damage. Executive Director of PHD Chamber of Commerce and Industry (PHDCCI) Dr Ranjeet Mehta said ethanol will help in decarbonisation, improve carbon footprints and at the same time increase the income of farmers.

He said that the government plans to have 5,000 gas plants by 2030. "We in PDHCCI see a tremendous opportunity in promoting biogas," Dr Mehta said in his vote of thanks. Earlier, explaining the salient characteristics of bioethanol, Dr Mehta told Krishi Jagran that bioethanol can be used as an alternative to petrol or blended with it to reduce petroleum consumption.

On how he saw the future of bioethanol fuel, he said it has the potential to significantly reduce greenhouse gas emissions, provide a more reliable and cost-effective fuel supply, support the growth of rural economies, and reduce dependence on oil import. It has a much lower carbon footprint.

Asked about the role PHDCCI could play in promoting the use of bioethanol fuel, Dr Mehta said the trade body was offering international fora to discuss and brainstorm various issues related to environment and climate change. "The International Climate Summit organised by the PHDCCI is part of our efforts in this direction," he said.

Ethanol has an octane rating of 115, burning cleanly in automobile engines with fewer particulate emissions. 2G-ethanol will play an important role in replacing gasoline and will provide energy security to our country. Additionally, replacing LPG with ethanol for cooking will be a revolution in itself.

Using LPG for cooking poses risks due to single fuel dependency. Ethanol offers additional advantage over the logistics of using heavy LPG cylinders, with a reduction in the substantive costs associated with maintaining complex infrastructure for LPG.

In view of this, bioethanol emerges as a competing renewable fuel. In nearly a decade, India’s ethanol blending initiative has yielded impressive results. This has resulted in significant savings in foreign exchange amounting to Rs. 78,118 crores, alongside a substantial reduction in CO2 emissions totalling 426 lakh MT.

Moreover, these efforts have successfully substituted 142 lakh MT of crude oil during the same period, contributing to energy security and sustainability. Equally noteworthy is the substantial support provided to farmers. Biofuel demand is set to expand to 38 billion liters over 2023-2028, a nearly 30% increase from the last five-year period.

The total biofuel demand is likely to rise by 23% to 200 billion litres by 2028, with renewable diesel and ethanol accounting for two-thirds of this growth and biodiesel and biojet fuel making up the remainder.

Corn ethanol will be needed to make India self-reliant in ethanol among emerging economies, as Brazil, Indonesia, India, and Malaysia are expected to drive over 60% of global biofuel demand and production growth during the specified period.

Robust biofuel policies will lead to escalating demand for transport fuel, ethanol for cooking, and the introduction of Sustainable Aviation Fuel. The government needs to accord the topmost priority supporting the 'Corn Revolution' in the country on a war footing for the production of 2G ethanol.

PSUs and other oil sector companies should set up mega 2G refineries with 1250-1500 kilo litres per day capacity on a priority basis. The government needs to support Indian farmers with lucrative incentives to bring about a Corn Revolution in the country. Importing dented corn should be duty-free to create an ecosystem for 2G ethanol production for a period of five years till India becomes self-sufficient in local production of dented corn.

In fact, Global Biofuel Alliance (GBA) is a dynamic initiative by Prime Minister Narendra Modi that brings together governments, international organisations, and industry to speed up the adoption of biofuels, is to lead the biofuels development and deployment by uniting major consumers and producers, establishing them as crucial for energy transition and economic growth.

PM Modi had said, “The launch of the Global Biofuels Alliance marks a watershed moment in our quest towards sustainability and clean energy.” It will also help accelerate India’s existing biofuels programs such as PM-JIVAN Yojna, SATAT, and Gobardhan scheme, thereby contributing to increased farmers’ income, creating jobs and overall development of the Indian ecosystem.

The Global Biofuels Alliance (GBA) aims to boost sustainable biofuels globally. They focus on capacity-building throughout the value chain to enhance efficiency and innovation. GBA’s initiative aligns with the goal of increasing renewable energy in transport from 3-27% by 2050. Their strategy includes a virtual marketplace to connect supply and demand in the growing biofuel industry. This marketplace plays a key role in harmonising global biofuel efforts as demand is expected to rise significantly by 2028.

The Summit, divided in three technical sessions on Ethanol Production – 1G and 1.5G Technologies; Corn Revolution – Transform Rural India; and Decarbonisation and Carbon Trading, saw animated discussions by experts and thought-provoking speeches by various stakeholders.