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Green technology

India's Ethanol Success Story: A Clean Energy and Farm Empowerment Story

Strategic Insights

— 2 min read

India is making strides in adopting clean energy, thanks to a mix of sugarcane and grain-based biofuel production, backed by strong policy support. The country's ethanol success story is not only about powering a cleaner future but also about empowering farmers and building a more resilient, self-reliant economy. The government's initiatives, such as the bio-fuel policy, green hydrogen mission, and a net-zero emission target by 2030, are playing a crucial role in driving this growth.

Key Takeaways:

  • India has set a target of 5% blending of sustainable aviation fuel (SAF) in the mandatory fuel blend by 2030, providing an opportunity for the export of the "fuel of the future."
  • The country aims to increase the share of gas in the economy to 15% from 6% and produce five million metric tons of green hydrogen annually.
  • The adoption of biofuels is critical in reducing carbon emissions and mitigating energy security threats, with the industry estimating the potential to decarbonize and deliver one-third of today's natural gas consumption and reduce global greenhouse gas emissions by 11%.
  • The Global Biofuels Alliance (GBA), led by the US, Brazil, and India, has expanded to include 28 countries and 12 organizations, promoting international cooperation, policy support, and technological advancements for sustainable biofuels.
  • India is pushing for non-food feedstocks in advancing its biofuels sector, with opportunities, challenges, and policy considerations for scaling sustainable biofuels and strengthening energy security.
  • The use of agriculture residue for ethanol and SAF production addresses the problem of stubble burning and enables farmers to generate additional income from waste.
  • By 2040, India aims to produce 8-10 million tonnes of SAF against a potential demand of 4.5 million tonnes at a blending rate of 15%, with an estimated 230 million tonnes of surplus agricultural residue available for 2G ethanol plants.
  • India is well-positioned to capitalize on the rising global demand for SAF due to its abundant feedstock and high exposure to exports.

Statistics:

  • By 2040, India aims to produce 8-10 million tonnes of SAF.
  • The demand for SAF is expected to hit 50 million tonnes by 2050 (IATA).
  • India currently accounts for around 2% of the global ATF demand (around 1.1 billion passenger traffic and 1.7 million tonnes of freight traffic by 2040).
  • The GBA has expanded to include 28 countries and 12 organizations.
  • 230 million tonnes of surplus agricultural residue are available for 2G ethanol plants.
  • India aims to produce five million metric tons of green hydrogen annually.

Sources:

  • India Energy Week 2025
  • Global Biofuels Alliance (GBA)
  • World Biogas Association
  • World Economic Forum
  • International Energy Agency
  • Indian Institute of Technology (IIT)
  • National Sugar Institute (NSI)
  • Ministry of Petroleum and Natural Gas, Government of India
  • Pradhan Mantri Jivan Yojana
  • Amity University Gurugram

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