Prime Minister Narendra Modi highlighted ethanol blending as a key strategy to reduce India’s dependence on imported crude oil. Recent disruptions in global oil and gas supply chains, particularly arising from geopolitical tension in West Asia, have underscored the urgent need for India to strengthen domestic energy production and accelerate the development of alternative energy sources to reduce dependence on imports.
India rapidly growing economy has led to a sharp increase in demand for crude oil and natural gas. Oil and gas remain the largest component of the country’s import basket, currently valued at approximately 176 billion dollars. Crude oil imports increased from 189 million tonnes in 2014-15 to 243 million tonnes in 2024-25, and dependence on crude oil rose from 84 per cent in 2014-15 to around 90 per cent last year. The high import dependence, coupled with limited energy resilience, creates significant vulnerabilities ~ impacting not only economy stability but also national security and defence preparedness. Several path-breaking initiatives have been undertaken by the government to increase domestic production of crude oil and gas, but with limited success.
It is imperative that India now accelerates the development of alternative domestic energy sources as a national priority. India’s pathway to energy security lies in a diversified energy mix including solar, coal gasification, nuclear, hydrogen, and biofuels. No single energy source can in isolation deliver self-reliance for India. Solar energy generation has increased significantly. India has set a target of achieving 500 GW of renewable energy capacity by 2030; however, this ambition may be further enhanced towards 1,000 GW in the medium to long term.
Parallel efforts are needed to develop energy storage systems and strengthen grid capacity. India has also announced the Green Hydrogen Mission, with several incentives to achieve a target of 5 MMT of green hydrogen by 2030. Green hydrogen, while promising, remains cost intensive and will require time, infrastructure development, and technological advancements to achieve commercial scale. India should focus on developing its ecosystem and infrastructure for green hydrogen rather than replicating Western models without adopting them to India’ unique economics and infrastructure realities.
The nature of the hydrogen molecule presents challenges in production, storage, and transportation, requiring sustained R&D to make green hydrogen a sustainable, cost-effective, and safe fuel. The government has also announced important policy decisions to fast-track nuclear energy through small modular reactors. The global energy transition is entering a decisive phase. Road transport, through blending mandates, enables countries worldwide to reduce fossil fuel dependence while supporting agricultural economies. Ethanol must be reimagined – not merely as a fuel additive but as a strategic energy vector and industrial feedstock.
Ethanol’s future lies beyond its conventional role. With established global production, flexible feedstock origins, and compatibility with both biochemical and thermochemical conversion pathways, ethanol offers scalability and versatility. Bio-ethanol from corn has a proven track record of success in countries such as Brazil, Mexico and the US. Ethanol blending in petrol has increased from 5 per cent in 2014 to 20 per cent in 2025 – an almost fourfold increase in just 11 years in India. Ethanol production has surged from 380 million litres to 6.61 billion litres during this period. Higher blending has not reduced reliance an imported crude due to faster gasoline consumption.
Ethanol-blended fuel burns cleaner than gasoline and improves the fuel’s octane rating. Ethanol also has a higher oxygen content than MTBE, requiring only half the volume to achieve the same oxygenation level in gasoline. India stands as one of the most compelling success stories in ethanol blending today. This momentum presents a transformative opportunity that India must strategically capitalize on. By progressively scaling ethanol blending to E30 and eventually E100, India can take a decisive step toward energy security, food security, and decarbonization.
This transition has the potential to trigger a “Corn Revolution” in India, significantly enhancing farm productivity, farmer incomes, and rural industrialisation. To meet this target, India will likely require 165 lakh tonnes of maize ~ 48 per cent of the current production of 346 lakh tonnes. This implies maize production must increase to 420-430 lakh tonnes by 2024-25 and 640-650 lakh tonnes by 2029–30. Both first-generation (1G) and 1.5G ethanol production technologies are available in India, while second-generation (2G) technology is under development in several Indian laboratories.
1G facilities produce bioethanol by fermenting sugars from sugarcane, sugar beet, or cereal seeds. Hybrid 1.5G technologies enable the partial conversion of cellulosic sugar found in corn kernel fibre, bridging the gap between maize-based ethanol and cellulosic ethanol. India’s current success with ethanol blending provides a launchpad for a Maize Revolution. Emerging technologies can transform ethanol into sustainable aviation fuel (SAF) via Alcohol-to-Jet pathways, enabling airlines to reduce lifecycle emissions without altering existing aircraft infrastructure.
Ethanol is also gaining prominence as a precursor to marine fuels, particularly through conversion into e-methanol and hydrocarbon fuels suitable for long-haul shipping. Aviation is one of the fastest-growing sources of emissions globally, with limited alternatives to liquid fuels due to energy density requirements and infrastructure constraints. Ethanol-to-jet (ATJ) technology offers a scalable, near-term solution. The key advantages of ethanol-derived SAF are:
* Technology Readiness: ATJ pathways are already certified and moving toward commercial deployment.
* Feedstock Scalability: Ethanol production is globally established, unlike many SAF feedstocks constrained by supply.
* Infrastructure Compatibility: SAF is a drop-in fuel, requiring no modifications to aircraft or fuelling systems.
* Lifecycle Emissions Reduction: Offers significant reductions compared to fossil jet fuel, especially when derived from low-carbon feedstocks.
Ethanol provides a critical bridge from first-generation biofuels to advanced aviation fuels, leveraging existing distilleries, supply chains, and agricultural systems while enabling entry into high-value, export-oriented fuel markets. As global SAF mandates accelerate across Europe, North America, and Asia, ethanol-to-SAF pathways are uniquely positioned to scale rapidly and economically, positioning ethanol as a cornerstone of aviation decarbonization strategies globally. In parallel, ethanol’s conversion into ethylene opens a gateway to the decarbonization of the chemical industry.
From monoethylene glycol (MEG) and bio-based PET to polyethylene variants such as HDPE and LDPE, ethanol-derived materials can replace fossil-based feedstocks in some of the world’s most widely used products. This positions ethanol at the intersection of energy, materials, and sustainability – bridging sectors that have historically evolved in isolation. This expands ethanol’s role beyond energy into a circular bioeconomy platform, reducing dependence on fossil-based petrochemicals. The following strategic recommendations are offered:
1. The government should develop and implement a comprehensive policy framework with financial incentives, similar to the Green Hydrogen Mission, to promote the corn-to-ethanol sector on a war footing.
2. Allow the duty-free import of GM corn for ethanol production. Corn for ethanol should be recognised as a strategic energy food stock, requiring policy support similar to conventional energy resources. This will not impact local farmers, who predominantly produce sweet corn which could be exported with better price realization. Import of GM Corn should be allowed for a limited period till farmers are able to produce enough to meet ethanol requirements for captive consumption and export.
3. Rather than importing ethanol, allow duty-free imports of yellow dent corn for domestic production.
4. Provide targeted incentives for the development and adoption of high yield hybrid and advanced seed technologies to enhance maize productivity. Develop a phased road map towards higher ethanol blends, supported by flex fuel vehicle adoption and infrastructure readiness to incentivize demand of ethanol and attract investment in ethanol production. Develop infrastructure to handle both petrol and ethanol at fuelling stations.
5. Announce a policy for flex-fuel engines in the automobile sector to ensure compatibility with higher ethanol blends within three years.
6. Launch an ethanol mission, similar in scale and budget to the Green Hydrogen Mission, encompassing production, R&D, infrastructure, skill development, and safety.
7. Develop and implement certification standards for corn ethanol to ensure environmental and social integrity throughout the value chain.
8. Integration of digital MRV systems, carbon registries, and traceability platforms will be critical to unlocking the full economic potential of ethanol, particularly in accessing global carbon markets and green fuel certifications. By adopting a strategic, integrated and forward-looking policy framework, India can emerge as a global leader in the bio-ethanol economy.
Beyond meeting local needs, India can become a major exporter of ethanol, sustainable aviation fuel, and e-methanol. This strategy will strengthen energy security, decarbonize transport, and create transformative and sustainable livelihood opportunities for Indian farmers while positioning them as a key stakeholder in the emerging carbon economy.
(The writer is Director, INDRAX Safety & Energy Solutions, and Chair, Environment & Climate Change Committee, PHDCCI. He can be reached at jeewanprakashgupta @indrax.co.in)