Ethanol Emerges as Key Pillar in India’s Clean Energy Push

Ethanol is rapidly emerging as a cornerstone of India’s clean energy transition, with a significant boost in ethanol blending percentages and new developments in sustainable aviation fuel (SAF). The country's ethanol blending rate reached 18.4% by March 2025, up from 14.6% in 2024, inching toward the national target of 20%.

Ethanol Blending Reaches Milestone, Flex Fuel Vehicles on the Horizon

According to Alok Sharma, Director (R&D) at Indian Oil Corporation (IOC), the country is not only nearing its 20% blending goal in gasoline but is also exploring blending levels beyond that. "There are talks about using flex fuel vehicles… all OEMs have been given a target to come out with flex fuel vehicles this year," Sharma said, noting that these developments could push ethanol usage even higher in the coming years.

In addition to gasoline blending, discussions are underway to extend ethanol blending to diesel, reinforcing its role in India's broader biofuel strategy.

Biofuels for Aviation: SAF and ATJ Fuel in Focus

India's aviation sector is also poised for a transformation into biofuels. Oil Marketing Companies (OMCs) are working on Alcohol-to-Jet (ATJ) fuel, with IOC planning its first Sustainable Aviation Fuel (SAF) plant based on Used Cooking Oil (UCO), expected to be commissioned by October 2025. This comes ahead of anticipated mandates requiring 5% SAF blending in aviation fuel by 2030.

“We are also modifying some refineries to use UCO and exploring dedicated plants for neat SAF production,” Sharma said.

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2G Ethanol and Biofuel Expansion Amid Challenges

The IOC has launched its first 2G ethanol plant in Panipat using agricultural residues and non-food crops. Although currently operating at around 50% capacity due to feed handling issues, three more 2G plants are in the pipeline. Sharma emphasized that addressing challenges like feedstock supply, waste segregation, scalability, and skill gaps will unlock further potential.

India’s long-term energy roadmap includes Net Zero targets by 2070, with IOC aiming for operational Net Zero by 2046. Sharma stressed that biofuels—alongside green hydrogen, CCUS, and renewable energy—will be vital to decarbonizing transport and achieving climate goals.