Positive response for first EOI for ethanol supply agreement

Last Updated19/09/2021

The first Expression of Interest (EOI) for signing long-term agreement with upcoming dedicated Ethanol plants for supply of Ethanol has received an overwhelming response with 197 bidders participating in it.
The EOI was published by BPCL on behalf of Oil Marketing Companies under the guidance of Ministry of Petroleum and Natural Gas.
The EOI intend to motivate project proponents to set up ethanol production plants in ethanol deficit states.

It is a renewable biofuel made from biomass.
Ethanol is a clear, colorless alcohol made from a variety of biomass materials called feedstocks (the raw materials used to make a product).
Ethanol producers mostly use food grains and crops with high starch and sugar content as feedstocks for making ethanol such as corn, sorghum, barley, sugar cane, and sugar beets.
The most common ethanol production processes today use yeast to ferment the starch and sugars in corn, sugar cane, and sugar beets.

Ethanol is a good fuel for use in spark-ignition engines.
It has a high octane number (measure of the knock resistance on combustion), making it attractive as an antiknock additive in gasoline.

173 Crore litre Ethanol was procured last year and 5 per cent blending was achieved during Ethanol Supply Year (ESY) – 2019-20.
The target for ongoing year ESY – 2020-21 is 325 Crore litre which will take the blending to 8.5 per cent.
Actual achievement during ESY – 2020-21 so far has been 243 Crore litre, accounting for 8.01 per cent blending.
The Government has announced five different rates for Ethanol based on feedstock used for Ethanol production.