India’s ethanol revolution is aimed at reducing the nation’s dependence on fossil fuels, lowering greenhouse gas emissions, and supporting rural communities. This push towards ethanol brings a multitude of benefits alongside notable challenges. Significant strides have already been made with the Ethanol Blending Petrol (EBP) Program on track to achieve a 20% blending target by 2025. This progress reflects a positive trajectory towards a more sustainable and energy-secure future.
An Overview of India’s Ethanol Blending Program and Its Role in Sustainable Fuel Alternatives
India’s Ethanol Blending Petrol (EBP) Program has been vital in promoting ethanol production as an alternative to traditional fossil fuels. Ethanol blending in India has surged from 1.53% in 2014 to 15% in 2024, underscoring the strong governmental commitment to integrating renewable fuels into the national energy mix.
Source (Source: https://pib.gov.in/PressNoteDetails.aspx?NoteId=153363&ModuleId=3®=3&lang=1)
To accelerate this shift, initiatives like the National Policy on Biofuels (2018) have been introduced, encouraging biofuel production from various feedstocks, including sugarcane and damaged food grains, to diversify ethanol sources and ensure a steady supply.
The Economic Impact of Ethanol Blending: Reducing Oil Imports and Creating Jobs
Since 2014, the Ethanol Blending Petrol (EBP) Program has saved the nation approximately ₹99,000 crore (US$11.80 billion) in foreign exchange—substantially reducing dependency on imported crude oil. As the ethanol industry expands, it is projected to generate thousands of jobs across production, logistics, and related sectors, contributing to sustained economic growth. Source
Environmental Benefits of Ethanol Blending: Lowering Carbon Emissions and Pollution Levels
Increased reliance on renewable fuels like ethanol has helped India in reduction of CO2 emissions by 544 lakh metric tons, and a substitution of 181 lakh metric tons of crude[Jakson Gr1] . This aligns with India’s sustainability goals and its commitment to reducing greenhouse gases under international climate agreements. Furthermore, the use of ethanol as a fuel contributes to a cleaner environment by reducing particulate emissions and other harmful pollutants associated with petrol and diesel combustion. Source
Addressing Challenges in Ethanol Production: How Jakson’s Initiatives Are Driving Sustainable Solutions
While sugarcane has been a primary source of ethanol production, fluctuations in supply due to weather patterns and market shifts highlight the need for alternative feedstocks. To address this, the government has ramped up support for grain-based ethanol production, with Jakson leading the way through strategic projects aimed at strengthening production capacity.
Jakson’s state-of-the-art 150 KLPD Grain-Based Distillery in Village Basi, Madhya Pradesh, is a prime example of these efforts. This facility uses locally sourced broken rice and maize as its primary feedstock—crops abundantly available in Balaghat, also known as central India’s rice bowl. The distillery’s location near Maharashtra and Chhattisgarh facilitates efficient distribution to major markets, supporting supply chain stability and regional economic growth. With an expansion potential to 400 KLPD, this distillery will play an important role in strengthening India’s ethanol supply chain and advancing its journey toward a cleaner, greener energy future.
