In June 2021, the government set the target for attaining 20% of ethanol blending in fuels by the year 2023. The news was an advantageous one for the sugar mills as ethanol is one of the main byproducts released during the sugarcane processing. The oil-producing companies can procure the ethanol produced by the mills for fuel blending.
Government has, also, doubled the incentives for encouraging the sugar production mills to divert additional sugar for ethanol production. This move has increased ethanol capacity of sugar companies in India. It appears that the central government is trying to achieve the targets of green energy in the upcoming years that will render many benefits to the country. Let’s study them in detail.
Today, most countries across the world are trying to switch to organic fuels or biofuels. Even a student from elementary school understands the need for biofuels in the current scenario. So many conventions are taking place among a diverse group of countries to save the planet. Therefore, procuring ethanol from the sugar mills by the oil-producing companies is going to be of great advantage for India.
Building Greener India
We do understand the need for renewable sources of energy in the present scenario. Not just India, but many other countries across the world rely heavily on non-renewable sources of energy. Natural Gas, Oil, and Coal are the fossil fuels that make up the majority of energy resources in India. When these are burnt toxic fumes are released into the atmosphere which causes air pollution. Along with that, the burning of fossil fuels releases carbon dioxide which has an immense impact on climate change across the world.
Not just that, these toxic gases and fumes are the primary cause of many terminal diseases that people are suffering from. Therefore, today we are in need of a greener India. There is no doubt that the government of India is taking many initiatives to turn this vision into reality. Owing to this vision the government has approved the suggestion of petrol blending with ethanol. Some of the top ethanol producing sugar companies in India have started to contribute to this initiative already. We can minimize the burning of fossil fuels as well as conserve the limited and non-renewable resources of energy.
Reducing Dependence on OPEC
Even after so much condemnation of the price dominance of OPEC members over crude oil, many countries are dependent on them to fulfill the quota of oil supply. Thus, every country that is willing to minimize the price hegemony of OPEC has to switch to an energy option that is greener and cheaper. As India has stepped forward on the report of ethanol blending, the country may receive a respite from the price sovereignty created by OPEC. India, every year, has to divert a large chunk of economic dividend to the procurement of crude oil. When we are going to save that income, it could be diverted for the development of other areas in the economic sectors.
Profitable Venture for Sugar Mills
In the year 2021, the Indian Government has improved the incentives for the sugar mills to raise the ethanol capacity of sugar companies in India. When the center is encouraging such a move in the country, the sugar mills will get the nudge to divert sugar quantities toward the production of ethanol. Also, the mills with an additional quota of raw material can divert it toward ethanol making. A few companies have started to invest in biofuel production. Therefore, the move by the government for ethanol blending can lead to successful ventures for mills of sugar as well.
In the existing scenario when every country is making efforts to reduce carbon emissions and other pollutants in the atmosphere, the step to use ethanol as an ingredient in the fuel is going to be a landmark movement. In the plan of saving the planet earth, sugar mills can play a significant role in the nation.