New Delhi, June 13 (SocialNews.XYZ) India’s ethanol blending programme has achieved significant scale, with E20 operationalised nationwide, a report said on Saturday, as the biofuel landscape enters its next phase of growth beyond the 20 per cent ethanol blending milestone.
The report by KPMG in India examines the evolving ethanol landscape as the sector transitions beyond E20, highlighting key opportunities and challenges across feedstock availability, supply chain efficiency, infrastructure readiness and policy alignment.
As India advances towards the next phase of growth, sustaining momentum will require a shift from scale creation to system optimisation, it added.
“Having achieved the E20 milestone ahead of schedule, the imperative now is to move from scale creation to system intelligence — where ethanol transitions from a blending mandate to a foundational pillar of a resilient, flexible and future-ready transport fuel ecosystem,” said Anish De, Global Head of Energy, Natural Resources and Chemicals (ENRC), KPMG International.
The report underscores the need for greater emphasis on second-generation (2G) ethanol, expanded adoption of alternative feedstocks such as maize and agricultural residues, and improvements in production efficiency.
It highlights the importance of addressing challenges related to feedstock availability, food-fuel balance, pricing mechanisms and supply chain logistics to ensure a stable and reliable ethanol supply.
It also emphasises the role of coordinated ecosystem development, including scaling flex-fuel vehicle adoption, strengthening blending and distribution infrastructure, enhancing storage capacity and ensuring policy coherence.
In addition, improved coordination, transparency and system-level visibility across the supply chain are expected to play a critical role in improving operational efficiency and transparency across the ethanol value chain.
“India's ethanol journey has evolved from a targeted blending directive to a structurally significant component of the nation's transport energy architecture. As the sector advances beyond E20, the strategic priority must shift toward feedstock diversification, demand-side flexibility and infrastructure alignment at scale,” said Vivek Rahi, Partner and National Head, Oil and Gas, KPMG in India.
Second-generation ethanol and non-food feedstocks are expected to play a critical role in enabling incremental supply and reducing dependence on first-generation pathways. Expansion and evolution of storage, transportation and distribution infrastructure toward multi-grade systems will be essential to support higher blends and ensure reliable supply, according to the findings.
Source: IANS
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