India’s ethanol blending programme has made significant progress, now operating at E20 nationwide. The transition to this level marks a crucial phase in the biofuel sector’s growth beyond the 20% ethanol blending milestone. As the country moves towards further expansion, the focus shifts from creating scale to optimizing systems for sustained momentum. Anish De, Global Head of Energy at KPMG International, emphasizes the need for ethanol to become a foundational element of a resilient and future-ready transport fuel ecosystem.
The report by KPMG in India highlights the evolving ethanol landscape, emphasizing the importance of second-generation (2G) ethanol and the adoption of alternative feedstocks like maize and agricultural residues. It underscores the necessity of addressing challenges related to feedstock availability, pricing mechanisms, and supply chain logistics to ensure a stable ethanol supply. The report also stresses the significance of ecosystem development, including scaling flex-fuel vehicle adoption and enhancing blending and distribution infrastructure.
India’s ethanol journey has transformed from a blending directive to a crucial component of the nation’s transport energy architecture. Vivek Rahi, Partner and National Head of Oil and Gas at KPMG in India, points out the strategic shift towards feedstock diversification and infrastructure alignment as the sector moves beyond E20. The role of second-generation ethanol and non-food feedstocks is expected to be vital in enhancing supply and reducing reliance on first-generation pathways. The expansion and enhancement of storage, transportation, and distribution infrastructure will be key to supporting higher blends and ensuring a consistent ethanol supply.
