
What happens when you add a new flavour to a familiar recipe, one that makes it healthier yet keeps its essence intact? Switching India’s fuel to E20 is a bit like blending tradition with innovation.
India’s transport sector is heavily dependent on fossil fuels, with nearly 85 percent of crude oil being imported to meet domestic demand. This creates significant economic vulnerability and adds to the country’s carbon emissions. To mitigate these issues, India has placed strong emphasis on biofuels, particularly ethanol blending, as a strategy to reduce oil dependency, strengthen energy security, and cut greenhouse gas emissions. A major step in this direction is the introduction of E20 fuel, a blend of 20 percent ethanol with 80 percent petrol, which is scheduled to be available across the country by the end of 2025. E20 is more than just a change in the composition of fuel. It represents a structural shift in India’s approach to mobility, one that ties together environmental goals, agricultural development, and industrial adaptation.
Composition and Nature of E20 Fuel
E20 fuel is prepared by blending 20 percent anhydrous ethanol with 80 percent ethanol-free motor gasoline. Ethanol used for blending is derived from renewable plant-based resources such as sugarcane, corn, wheat, and in recent years, cellulosic biomass including rice husk and agricultural residues. To qualify as fuel-grade ethanol, the compound must be purified to an anhydrous form, usually with a minimum purity of 99 percent, and denatured according to standards so that it cannot be diverted for potable use.
Ethanol as a compound (C₂H₅OH) has properties that make it suitable as a fuel. It is oxygen-rich and carries a higher octane value than conventional petrol, enabling better combustion efficiency and reducing engine knocking. It is also biodegradable and less harmful in case of spillage compared to petroleum fuels. However, ethanol differs significantly from petrol in chemical behavior, being both hygroscopic and corrosive. These characteristics necessitate modifications in storage, handling, and engine design.

Ethanol Production in India
India is currently the world’s fourth-largest ethanol producer, generating about 13.8 billion litres annually. However, consumption is already exceeding production, driven by rising blending targets. States like Maharashtra, Uttar Pradesh, and Karnataka contribute the largest shares.
The process of producing ethanol begins with feedstock crops rich in sugar or starch. These are processed to extract fermentable sugars, which are then converted into ethanol by microorganisms such as yeast. Following fermentation, the ethanol is separated from water and other by-products through distillation. To achieve the required purity, further dehydration is carried out, often using molecular sieves. Cellulosic ethanol, considered a second-generation biofuel, follows similar steps but uses residues such as rice straw or bagasse, thus avoiding competition with food crops.
By scaling up both first- and second-generation ethanol production, India aims to balance energy requirements with agricultural sustainability. This also creates an opportunity for farmers to diversify their income streams, particularly by monetizing agricultural waste.

Vehicle Compatibility
The transition to E20 requires significant changes in engine design and fuel system materials. Ethanol has different chemical and physical properties than petrol, it is corrosive, hygroscopic (absorbs water), and contains more oxygen.
To accommodate these, manufacturers have:
● Reinforced components like fuel tanks, gaskets, and hoses with ethanol-compatible materials.
● Calibrated Engine Control Units (ECUs) for optimal air-fuel ratio and ignition timing.
● Upgraded sensors for monitoring fuel composition.
Since April 2023, vehicles manufactured under BS6 Phase II norms are designed to be E20-compliant. Older vehicles, however, may experience reduced efficiency (up to 15–20% in some cases) and faster wear of components if operated on E20 without modification.

Benefits of E20 Fuel
The adoption of E20 fuel brings several interconnected benefits. From an environmental perspective, ethanol blending reduces emissions of carbon monoxide, hydrocarbons, and particulate matter. Over the full life cycle, ethanol produces fewer greenhouse gases than petrol, contributing to India’s climate commitments.
Economically, blending reduces the crude oil import bill and strengthens the country’s energy independence. Considering that nearly all of India’s transport fuel is currently sourced from fossil fuels, even partial substitution with ethanol yields considerable savings in foreign exchange.
E20 also acts as a driver for agricultural growth. The demand for ethanol creates a stable market for crops like sugarcane and maize, and second-generation ethanol production ensures that agricultural residues such as rice straw are productively utilized. This not only reduces stubble burning and associated air pollution but also provides farmers with an additional income stream, enhancing rural sustainability.
In terms of fuel performance, ethanol’s high octane rating allows engines tuned for E20 to operate at higher compression ratios, which improves combustion efficiency and reduces engine knocking. Over time, this can lead to smoother engine operation and potentially better power output for vehicles specifically designed for ethanol blends.
Regulatory Framework
Several policy and regulatory steps support the adoption of E20 fuels:
● MoRTH Notification (GSR 156E, 2021): Adoption of E20 as an automotive fuel with applicable emission standards.
● BS6 Phase II norms (April 2023): Mandated E20 compliance for new vehicles.
● BIS Specifications (IS 17943:2022 & IS 17021:2018): Defined technical parameters for reference and commercial E20 fuels.
● Safety Standards (AIS 171): Applicable to flex-fuel vehicles operating on blends higher than E20.
For consumers, the shift brings both opportunities and responsibilities. Owners of newer vehicles benefit from cleaner fuel and a lower long-term carbon footprint. Older vehicle owners may face higher maintenance needs, and in some cases, manufacturers are considering retrofit kits to improve compatibility. Preventive practices such as refueling only at authorized pumps, avoiding long-term storage of E20 in fuel tanks, and following regular maintenance schedules are recommended to minimize potential issues.
As India moves towards its goal of nationwide E20 rollout by the end of 2025, collaboration among policymakers, industry, farmers, and consumers will be essential. If managed effectively, E20 has the potential to reshape India’s fuel landscape, strengthening both its energy security and its commitment to environmental sustainability.
