For over a decade now, the Government of India has been pushing for alternate fuels to bring down crude oil imports as well as air pollution levels. At the same time, the Indian Government has been pushing to increase the levels of ethanol in petrol. The next big moment in this regard will be the implementation of E20 fuel, i.e., 20 percent ethanol blended fuel across the entire country by October 2025.
Addressing the inaugural session of India Energy Week 2025 virtually, Prime Minister Narendra Modi claimed that the industry is on course to achieve a 20 percent ethanol mandate by the intended timeline. Petrol in India is currently being blended with 19% ethanol, leading to foreign exchange savings, increased farmer revenue, and a significant reduction in CO2 emissions.
Initially, the government had set a target for 2030 but later advanced it to 2025-26. From 1 April 2025 onwards, manufacturers in India have been asked to produce vehicles with engines compatible with E20 fuel. This is applicable for conventional petrol engines as well as hybrid powertrains. Most of the car brands, including Maruti Suzuki, Volkswagen, Kia, Skoda, Hyundai, Honda, etc., have already updated their entire portfolio with E20 compatible engines.
Modi remarked that India’s biofuels industry is ready for rapid growth, with 500 million metric tonnes of sustainable feedstock. He further noted that during India’s G20 presidency, the Global Biofuels Alliance was established and is continuously expanding, now involving 28 nations and 12 international organizations. He further noted that India is currently the fourth largest refining hub and is working to increase its capacity by 20 percent.
What’s E20 fuel?
Ethanol, a key biofuel, is produced either by fermenting sugars with yeast or through petrochemical methods like ethylene hydration. An E20 fuel blend consists of 20% ethanol and 80% petrol. To withstand ethanol’s corrosive effects on rubber and soft metal parts, E20-compliant engines feature reinforced components.
The government is promoting ethanol blending to decrease India’s reliance on imported fossil fuels and enhance the earnings of sugarcane and maize farmers. Additionally, it is exploring a roadmap for ethanol blending beyond 20% in petrol.
