India preparing for E85 flex-fuel after E20:Mileage may decrease by up to 30%; aim to reduce crude oil dependency

Amidst the IranUS conflict, considering the crude oil supply crisis, the Indian government is now moving towards E85 flex-fuel. The government may soon issue a draft notification for approval of E85 fuel, for which a market consensus has already been formed. Goal to Reduce Dependence on Gulf Countries India imports 90% of its crude oil requirements. More than 50% of this comes from West Asian countries which reaches via the Strait of Hormuz. Due to Iran-America tensions, this route is closed, causing crude oil prices to cross $100. The rising cost of crude oil is not only a burden on the country’s economy but also a challenge for self-reliance. This is why the government is now focusing on ethanol-based fuel. Currently Petrol with 20% Ethanol is Being Sold E85 fuel contains 85% ethanol and 15% petrol. Currently, the sale of E20 fuel is mandatory across the country. Ethanol is made from agricultural products like sugarcane juice, corn, and spoiled grains. This fuel also helps in reducing carbon emissions in the environment. Auto Industry Ready, Waiting for Notification The automobile industry has already shown its readiness regarding flex-fuel technology. According to Toyota Kirloskar Motor’s Country Head Vikram Gulati, the biggest advantage of flex-fuel is that as a country we will not remain dependent on imports. The government is now working on a policy to promote flex-fuel vehicles instead of mandating E85 as a regulated fuel. Challenges need to be addressed on these 4 fronts SP Global’s Director Puneet Gupta says that adopting E85 will require a large ecosystem. There are 4 main challenges in this: Mileage and price could become obstacles According to experts, a bigger challenge than technology is the price of fuel and mileage. Due to ethanol’s lower energy density, the mileage of flex-fuel vehicles can drop by 20 to 30%. To compensate for this reduction, fuel prices will need to be kept low. Toyota, Maruti have already launched ethanol vehicles Companies like Toyota and Maruti Suzuki have already introduced vehicles running on high ethanol blend. TVS Motor Chairman Sudarshan Venu has also indicated that the company is planning to bring ethanol-powered vehicles in several of its segments including Apache. Need to emphasize on tax benefits Experts say that the government should work as a policy enabler rather than providing subsidies. This includes lower taxes on FFV (Flex Fuel Vehicles), a significant difference in prices between ethanol and petrol, and providing credits by considering ethanol as carbon-neutral. Knowledge Part: What is a Flex-Fuel Engine? It is an engine that can run on more than one type of fuel (such as pure petrol or any blend of petrol-ethanol). It has sensors installed that recognize the fuel mixture and automatically adjust the engine settings.