Brazil Experience in Ethanol Blending
Ethanol blends have been in use in Brazil since 1924, but it was only in the mid -1970s that they became mandated. The 1970s oil crisis emphasized the need to reduce the country’s high dependence on oil imports. At the time 81% of Brazil’s oil came from abroad.
In response, the government developed a public policy to encourage the use of domestic ethanol as a fuel for the lightweight vehicle fleet. Solo ethanol fueled vehicles were developed and commercialized by the local automotive industry in a joint effort between OEM and auto parts suppliers, which accounted for the majority of sales during a long period.
A turning point came in 2003 with the launch of flex-fuel vehicles when technology allowed measuring of benefits of ethanol on the environment. The results were staggering: the emission of 630 million tons of CO2eq into the atmosphere was avoided and it shifted a megalopolis, São Paulo, from the top to the end of the rank of the most polluted cities in the world. Today every car in Brazil runs on a minimum 27% or more ethanol blend. Thanks to the abundant supply and the flex-fuel vehicles (FFVs), nearly 50% of the country’s light fleet fuel demand is supplied by ethanol.
Brazil’s experience showed that policymakers should view a national blending policy through a strategic lens. In the short term, ethanol blending can improve a nation’s social and economic development. It is a turnkey solution delivering immediate results in the fight against climate change. It can decrease pollution in cities and is especially effective in decreasing fine particulate matter (PM 2.5) emitted from engines. It will enhance energy security by reducing dependence on imported oil, help with the trade balance and generate jobs and income in rural areas. Brazilian researchers concluded that the existence of an ethanol plant in a municipality raises the average GDP per capita by US$1,098, while the fifteen nearest towns experience an average GDP increase of US$ 475 when compared to similar locations in the same region.
Decarbonization - Bring Back My Blue Sky
With ethanol, São Paulo’s air quality saw a significant improvement with the sky colour going from grey to blue. The biofuel has saved, since 2003, more than 630 million tons of CO2 emissions to the Brazilian skies. Ethanol reduced almost 50% of pollution and improved air quality in the city, which has a population of over 12 million people that now benefit from cleaner air thanks to the major uptake of ethanol in transportation.
India Ethanol Blending Roadmap
Since 2014, concerted interventions by the Indian Government have led to remarkable improvements. By June 2022, India achieved the 10% ethanol blending target, and by July 2024, it surpassed the United States with a 15% ethanol-blended fuel as the standard.
Interventions by the government since 2014 are tabulated below:
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Re-introduced administered price mechanism Dec 2014Re-introduced administered price mechanism for ethanol to be procured under the EBP Programme.
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Alternate route for Ethanol Production Jan 2015• Opened an alternate route for Ethanol Production (2nd Generation including Petrochemical).
• Directed Oil Public Sectors Enterprises (PSEs) to set-up Bio-refineries. -
National Policy on Biofuels Jun 2018• Notified National Policy on Biofuels – 2018 with target of achieving 20% blending of biofuels with fossil-based fuels by 2030.
• Policy Amended in 2022 to revise the blending target to 20% by 2025–26. -
Interest Subvention Scheme Jul 2018• Interest Subvention Scheme for Enhancement and augmentation of ethanol production capacity in the country.
• GST on ethanol lowered from 18% to 5%. -
Extension of EBP Programme Apr 2019Extension of EBP Programme to whole of India except Island UTs of Andaman Nicobar & Lakshadweep islands.
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New sources introduced Sep 2019New sources sugar & sugar syrup introduced for ethanol production at fixed remunerative price.
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Ethanol Procurement Policy Oct 2019Published “Ethanol Procurement Policy on a long-term basis under EBP Programme”.
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Ethanol Suppliers Registration Aug 2020One time registration of ethanol suppliers for long term, including giving them visibility of ethanol demand for 5 years.
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NBCC Approval Nov 2020Approval of NBCC to utilize Maize for ethanol production.
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Ethanol Blending Roadmap Released Jun 2021• Roadmap for ethanol blending in India 2020–2025 report released by the Prime Minister.
• Pilot project of E100 dispensing from 3 locations at Pune launched. -
Incentives on Sugar Oct 2021Centre doubles incentives on sugar sacrificed for producing ethanol.
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Cabinet Approval for Pricing Nov 2021Approval from Cabinet committee on Economic Affairs for fixing higher ethanol prices derived from different sugarcane-based raw materials under EBP Programme from 01 Dec 2022 to 31 Oct 2023.
Oil PSEs given the freedom to decide the pricing for 2G ethanol. -
Government Fixed Higher Ethanol Price Dec 2021• Government fixed higher ethanol price derived from different sugarcane-based raw materials.
• Lowered the GST to 5% from 18% on ethanol meant for blending.
• Centre fixed 10% blending target for ESY 2021-22 & 20% by 2025-26. -
Differential Excise Duty Announced Oct 2022Union Budget 2022–23 announced an additional differential excise duty of INR 2/litre on unblended fuel from 01 October 2022.
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Global Biofuel Alliance Launch Sep 2023Launch of Global Biofuel Alliance by India at G20 Event, New Delhi.
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Research Projects Approved Mar 2024• E100 fuel launched at 183 retail outlets across five states – Maharashtra, Karnataka, Uttar Pradesh, New Delhi, and Tamil Nadu. • Approved new research projects (₹24.51 crore) to increase corn production in the catchment areas of ethanol industries to lessen the use of sugarcane and rice-based ethanol over the years.
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JI-VAN Yojana Extension Aug 2024Approval of the modified Pradhan Mantri JI-VAN Yojana – extended the timeline for implementation by five years, until 2028–29, and expansion of scope to include advanced biofuels produced from agricultural and forestry residues, industrial waste, synthesis (syn) gas, and algae.
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Upcoming Notification Mar 2025Notification of scheme for Cooperative Sugar Mills for conversion of their existing sugarcane-based plants into multi-feed-based ethanol plant.
Regulations for vehicles operating with higher ethanol blends
Flex Fuel Vehicles need to meet the most stringent BS6.2 regulations mandated in India.
In order to scale the FFV program in India, regulatory enablers will encourage & motivate SIAM members to develop FFV vehicles and reduce carbon footprint. To enable this transition and reap CO2 benefits for the country, it is recommended to consider Biogenic CO2 accounting in CAFÉ regulation. The following is proposed:
- CO2 from Ethanol combustion to be Zero (0 g/km) in CAFÉ regulation for flex fuel vehicles. This is considering biogenic nature of ethanol blended fuel.
- As Ethanol blend increases in nation, biogenic CO2 content at vehicle tailpipe will increase and same will need to be accounted in CAFÉ regulation.
- CO2 of biofuel powered vehicles, calculated for CAFÉ will need to remove biogenic CO2 from tailpipe CO2 measured during test cycle.
- After scientific experiments, supported by theoretical assessment, below relationship is made for biogenic CO2 w.r.t. Ethanol blends in Gasoline
Biogenic CO2 to be removed from tailpipe CO2 measurement of Biofuel powered vehicles is:
- E20 blended fuel – 14.3%
- E85 blended fuel – 79.1%
Ethanol as a Low Carbon Fuel:
Fossil fuels have been used for many centuries. During combustion, the carbon in these fossil fuels combines with oxygen (O₂) to produce CO₂. This CO₂ contributes to the greenhouse effect, warming the planet as it accumulates in the atmosphere. In contrast, the CO₂ from biofuel combustion is recycled from the atmosphere, resulting in a net-zero addition to the atmosphere.
"Biogenic" carbon, which contains a balanced ratio of ¹⁴C and ¹²C isotopes, produces CO₂ that was absorbed by plants while growing. This maintains the balance in nature and the environment. Therefore, burning biogenic carbon does not contribute to global warming, as the carbon balance is preserved. This balance is disrupted by the use of fossil fuels, which do not belong to nature's carbon cycle.
To quantify the “fossil” and “bio-genic” carbon in combustion gases of gasoline (only fossil product), and Ethanol blended gasoline (combination of fossil and bio-fuel) and Ethanol (only biofuel product) , a study was conducted in collaboration with ISMA , IUAC and Maruti Suzuki India Ltd.
Different isotopes of carbon (12C, 13C & 14C) were counted using accelerator mass spectrometer equipment .
The experiments involve making fuel combustion at stoichiometric and converting the CO2 obtained to only carbon form by extracting oxygen and hydrogen from combustible content.
It replicates the combustion made in vehicles for each fuel type.
2. Theoretical calculation of non-fossil (Bio-genic) CO2
Using density of fuels, molecular mass, the carbon balance calculation indicates that as ethanol content increases, share of CO2 from ethanol combustion also increases. This CO2, contributed by Ethanol combustion, must be non-fossil (bio-genic) in nature. Experimental results were carried out for confirmation. (as mentioned in the Table 1 below )
3. Experimental results from atomic level assessment of various carbon isotopes using accelerator setup at IUAC
The experimental results were in line to theoretical assessment and repeatable after at least 30 experiments done using 2 samples of each Ethanol & Gasoline mixture as above. The method can be applied to any ethanol blend in gasoline fuel. (as mentioned in the Table 2)
In line with the 'Panchamrit' announced by the Prime Minister at COP26 in Glasgow, the Government of India is increasingly pushing for use of ethanol-blended fuel. Bio-Ethanol presents an opportunity to decarbonize India’s transport sector. These efforts support the 'Make in India' initiative, reduce petroleum imports, and promote the “Aatmanirbhar Bharat” campaign, contributing to India’s goal of becoming a net zero economy by 2070.
Policy Framework
Brazil
RenovaBio – The Program
Launched in 2017, the National Biofuels Policy (RenovaBio) is a key tool in reducing greenhouse gas emissions and helping Brazil fulfil its commitments under the Paris Climate Agreement. With the expansion of the domestic sustainable biofuels market, from production to utilization of cleaner fuels, RenovaBio supports the substitution of fossil fuels. The program went into effect in December 2019. Guided by annual goals, the program is expected to prevent the release of more than 600 million tons of CO2 into the atmosphere over a period of ten years (2019-2029), by increasing the use of renewable fuels in the transport matrix.
To join the program, mills must have their production process audited, including the origin of their biomass, which must adhere to a zero-deforestation policy. Based on the audit and product lifecycle, an energy environmental efficiency score (NEEA) is generated. The more efficient and sustainable the production, the higher the NEEA.
Based on the NEEA score, which is validated by the National Agency for Petroleum, Natural Gas and Biofuels (ANP), the producing units are allowed to generate Decarbonization Credits (CBios). In the case of ethanol, for example, companies with less carbon intensity need around 650 litres of biofuel to generate one Decarbonization Credit, which is an exchange-tradable security. Under the program, any agent (individual or legal entity) can buy CBios on the stock exchange. RenovaBio obligate fuel distributors to purchase these securities, as they must meet individual emission reduction targets. These targets take into account the volume of fossil fuel traded by the distributor. Participation in RenovaBio is not restricted to Brazilian biofuel producers. International producers can also join the program if they complete the production certification process.
What is CBio?
The Decarbonization Credit (CBio) is the main asset to promote greenhouse gas emissions reduction in the transport sector in Brazil. Each credit represents one ton of CO2 avoided. Being an exchange-tradable security, the CBio will allow biofuel production in Brazil to be even more sustainable, with investments in new technologies and efficiency.
The credit can be used by anyone as a way of neutralizing their CO2 emissions. Since the program began in December 2019, more than 100 million CBios have been generated. In other words, more than 100 million tons of CO2 have ceased to be emitted.
Life Cycle Analysis
To accurately assess the environmental efficiency of various fuel types and vehicle power sources, it is essential to consider not only emissions generated during vehicle operation - referred to as the "tank-to-wheel" phase - but also the entire "well-to-wheel" lifecycle. This comprehensive approach accounts for all material and energy flows involved in fuel production, from the extraction of natural resources, biomass cultivation, processing, and conversion into biofuels, to transportation and distribution up to fuelling stations.
In the vehicle usage phase, carbon emissions from biofuel combustion are considered neutral concerning climate impact, as the CO2 released originates from the biological carbon cycle. This "biogenic carbon" differs fundamentally from fossil fuel emissions, which stem from long-term geological processes, contributing to a net increase in atmospheric CO2 levels.
Thus, the greenhouse gas (GHG) reductions attributed to biofuels are linked to their displacement of fossil fuel counterparts throughout the entire well-to-wheel lifecycle. Simply substituting ethanol for gasoline is not sufficient; it is also crucial to minimize non-recyclable CO2 emissions during raw material processing and biofuel conversion.
In Brazil, the RenovaBio program serves as a model for monitoring and enhancing biofuel efficiency, rewarding lower carbon intensities compared to conventional fossil fuels. Implementing similar regulatory frameworks globally is essential to maximize the environmental and economic benefits of biofuel policies, ensuring sustainable energy transitions.
India
India’s National Biofuel Policy (NBP), introduced in 2018, aims to promote, develop and utilize domestic feedstock for biofuel production – a move that is expected to increasingly replace fossil fuels with biofuels, thereby contributing to national energy security, climate change mitigation, pollution reduction, improved health conditions and the sustained creation of employment opportunities.
As a part of the Ethanol Blended Petrol (EBP) programme, mills were allowed to produce ethanol from B Molasses and sugarcane juice. An indicative target was set for 20% blending of ethanol in petrol and 5% blending of biodiesel in diesel by the year 2030. In 2020, this target was sharpened to 10% ethanol-blending by 2022 (10% of ethanol mixed with 90% of petrol) and 20% by 2030.
In January 2021, India advanced the target of achieving 20% ethanol-blending with petrol by five years to 2025. Achieving this will require around 12 billion liters of alcohol/ethanol. For this harvest season, the sugar industry plans to divert 6 million tonnes of surplus sugar to produce around 7 billion liters of ethanol, while the remaining 5 billion liters will be produced from excess grain.
In 2020, sugar mills, oil marketing companies (OMCs) and banks entered into a tripartite agreement, which allows sugar mills to get loans on the basis of committed purchases of ethanol by OMCs. The agreement helps mills’ liquidity and promotes ethanol supplies, by enabling them to set up new distilleries or expand the existing facilities to manufacture ethanol.
In April 2024, Government of India approved the modified Pradhan Mantri JI-VAN Yojana scheme to extended the original timeline for implementation by five years, until 2028-29, and expanded its scope to include advanced biofuels produced from lignocellulosic feedstocks, such as agricultural and forestry residues, industrial waste, synthesis (syn) gas, and algae.