India Blog

For conversion of sugarcane-based plants into multi-feed based ethanol plants, Centre notifies new scheme for Cooperative Sugar Mills on 06.03.2025

Published on 12-Mar-2025 10:11 PM

Exploring the Journey from Sugarcane-based Ethanol to a Sustainable Future

In an era where sustainability and climate change are pressing concerns, India has taken bold steps toward diversifying its energy sources. The transition from sugarcane-based ethanol to multi-feed ethanol is a pivotal move in this shift, aiming to create a cleaner and more sustainable future for the nation.

Introduction: The Shift from Sugarcane-based Ethanol

Sugarcane-derived ethanol has long been a problem area due to environmental concerns and diminishing production. To address these challenges, India introduced a new ethanol program on 06.03.2025, focusing on converting sugarcane-based plants into multi-feed based ethanol. This initiative not only aims to meet future blending targets but also enhances fuel efficiency in E20-powered engines.

Production Overview and Target Blending

The previous year’s supply of ethanol was significant, with 672 crore litres provided to OMCs during the Ethanol Supply Year (ESY) 2023-24. However, this target is now set for a future blending percentage of 20% with petrol in ESY 2025-26. Multi Feed Ethanol plants are expected to meet these targets while improving fuel efficiency through the EBP (Ethanol Blended Petrol) Programme.

Material Compatibility and Improvements

Material compatibility has been achieved by April 2023, with E20 engines prioritizing this technology from April onwards. Despite a slight decrease in fuel efficiency compared to gasoline, this is a manageable improvement and a key factor in blending ethanol seamlessly with petrol for effective blending.

Supportive Schemes and Initiatives

The government has implemented comprehensive support measures, including remunerative prices for ethanol from feedstocks, reduced Goods & Service Tax (GST) on ethanol for the EBP Programme. The emphasis on maize as a major feedstock under this scheme ensures diverse production. Long Term Offtake Agreements (LTOAs) with dedicated ethanol plants also foster sustainable growth.

The Biofuels Amendment

In 2024, the government introduced an amendment to the Biofuels Policy, focusing on E20 and biochar. This marks a significant step beyond just ethanol production, aiming to create long-term renewable energy sources. The commitment is clear: to diversify towards cleaner energy solutions.

Conclusion: A Diversified Future

This new program reflects India’s commitment to sustainability and environmental responsibility. By transitioning from sugarcane-based ethanol to multi-feed forms, the government is paving the way for a future where renewable energy meets the growing demand for clean energy. This initiative not only supports future blending targets but also sets a precedent for sustainable practices across the country.


source: For conversion of sugarcane-based plants into multi-feed bas...