Hyderabad: Over the past decade, India has made remarkable progress in the biofuels sector, drawing global attention for its success—especially in ethanol blending. However, the next phase of growth will depend on how quickly the country advances in Sustainable Aviation Fuel (SAF), biodiesel blending, and compressed biogas (CBG).
This was stated by Y.B. Ramakrishna, a leading bioenergy expert and one of the key architects of India’s National Bio-Energy Policy 2018, in an interaction with ETV Bharat.
Ramakrishna described India’s ethanol blending programme as a rare example where climate policy has delivered multiple benefits at once—improving energy security, increasing farmers’ income, and supporting industrial growth.
“In less than 10 years, India moved from just 1.4% ethanol blending to 20%,” he said. “Today, the country has an ethanol production capacity of over 18 billion litres, while only 8–9 billion litres are needed for 20% blending. This clearly shows that India now has an ethanol surplus.”
According to Ramakrishna, this achievement has made India a global leader in ethanol, while many countries are still struggling to move beyond single-digit blending levels. However, the surplus itself has now become a new challenge.
“The key question is how to use this excess ethanol beyond petrol blending,” he said.
One promising option is Sustainable Aviation Fuel (SAF). Ramakrishna explained that while pathways exist to convert ethanol into jet fuel, the technology is not yet fully mature at a global level and requires further research and development.
He also highlighted biodiesel and ethanol blending in diesel as major opportunities. “A lot of R&D and field testing has already been done. I don’t see any major technical barriers. India should move forward with this quickly,” he said.
Methanol, Hydrogen, and Biogas: Different Timelines
Sharing his views on methanol, Ramakrishna said it should not be treated merely as a blending component for petrol or diesel. “Methanol should be promoted as a standalone fuel, especially for inland waterways and marine transport.” He added that dimethyl ether (DME) derived from methanol could serve as a strong alternative to diesel in certain sectors.
On hydrogen, he urged caution against over-optimism. “Hydrogen is a long-term solution. Large-scale adoption will take another 10 to 15 years,” he said.
Ramakrishna described compressed biogas (CBG) as the next major opportunity but expressed concern over its slow progress. India aims to produce 15 million metric tonnes of CBG through 5,000 plants, but currently only about 185 plants are operational, with around 300 under construction.
“The policy ecosystem is still not fully ready. Until that improves, large-scale investment will remain limited,” he warned.
EVs, Ethanol, and Rural Benefits
Ramakrishna also offered a balanced view on electric vehicles (EVs). He noted that EVs do not automatically have the lowest carbon footprint—especially if electricity is generated from coal. In comparison, ethanol can be produced from agricultural residue and waste, directly supporting the rural economy.
While acknowledging that ethanol blending beyond 20% may slightly reduce engine power, he stressed that the overall benefits far outweigh the drawbacks.
Reflecting on the 2018 bio-energy policy, he said that ethanol blending was stuck at 1.4% at the time and biodiesel had barely begun. “We had to identify the bottlenecks and design policies that actually worked on the ground.”
The results are now visible: over 200 ethanol manufacturing units are operational, sugar mills have returned to profitability, farmers have earned ₹50,000–60,000 crore, and India has saved nearly ₹1 lakh crore in fuel import costs.
“We achieved the 20% ethanol blending target in 2025, five years ahead of schedule,” Ramakrishna said. “Now, this success must become the launchpad for the next generation of biofuels.”
