Ethanol mix in petrol cleared
The Petroleum Ministry has given a green signal to the use of ethanol as an oxygenate.
As an additive, ethanol helps petrol burn efficiently. Petrol-ethanol blend can reduce carbon monoxide and hydrocarbon emissions by up to 35-55 per cent. A study conducted by Winrock International, India, shows that ethanol has the potential to reduce volatile organic compound by 27 per cent, nitrogen oxides by five per cent and particulate matter emissions by as much as 41 per cent.
The source of this wonderful additive is molasses, a sugarcane byproduct, which is found in abundance in the country. In the pilot phase, 5 per cent ethanol is blended in three pilot projects launched at Manmad and Miraj in Maharashtra and Bareilly in Uttar Pradesh. Further blending projects are planned at Gonda, Kanpur and Najibabad in Uttar Pradesh, Bhatinda and Pathankot in Punjab and Rajahmundry in Andhra Pradesh.
Experts are of the opinion that consumers are unlikely to bear the price burden of the switch to eco-friendly blended fuel. Dr A K Bhatnagar, director (Research and Development) Indian Oil Corporation said that alcohol was costlier than refinery gate price of petrol to which it is added. Government is looking at subsidising the product so that consumer gets it at the same price as petrol, says. Cost price to farmer for production of ethanol today is around Rs 15-18. As demand picks up, the price would decrease.
The refinery gate price of petrol is Rs 10. Blending of 5 per cent ethanol to petrol would increase the cost of the blended fuel. Budgetary concession on excise duty of Rs 0.75 per litre on petrol blended with ethanol will help offset some of the additional cost.
Vehicle manufacturers have responded positively to the blended fuel. While 5 per cent ethanol-petrol blend does not adversely affect vehicle engines, only Maruti vehicles are ready for a 10 per cent blend.
Supply of ethanol may not pose a problem, as currently it far exceeds the demand. The Petroleum Ministry estimates that to supply the entire country with the five per cent blend, it would require 500 million litres of ethanol. But, the installed capacity for ethanol production had reached 1,800 million litres in 1999-2000.
The Ministry earlier came under severe criticism for considering Methyl Tertiary Butyl Ether (MTBE) as an additive, as it is known to pollute groundwater and is suspected to cause cancer.
Then there was talk about Ethyl Tertiary Butyl Ether (ETBE) as an additive. But eco-friendly ethanol eventually won hands-down when tested for environmental, technical and financial considerations.
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