The Indian government is reportedly weighing ethanol as an alternative fuel for commercial cooking as the war in West Asia led to LPG supply disruptions, exposing vulnerabilities in India’s import-dependent energy industry. The disrupted supplies have resulted in rising LPG prices and losses for businesses.
According to a report by Moneycontrol, a proposal by industry representatives seeks to divert surplus ethanol capacity of about 1,000 crore litres towards cooking, and a detailed white paper is expected to be submitted to an inter-ministerial panel in the upcoming weeks.
“Ethanol may be seen as a complementary clean cooking fuel, not a replacement for LPG. It can reduce dependence on imports, enhance energy resilience, and provide a viable pathway to utilise surplus ethanol, particularly in large commercial cooking applications such as hotels, airports and restaurants," a source told Moneycontrol.
Industry representatives have also expressed their readiness to conduct trials and develop safety and technical standards in consultation with the government, according to the source. A detailed proposal is currently being prepared for submission to the inter-ministerial committee.
In India, ethanol is primarily produced by fermenting and distilling sugarcane, maize and broken rice. It is being used as a renewable biofuel, blended with petrol to reduce crude imports and carbon emissions. In households, it serves as a solvent in products such as perfumes, paints, and cleaning agents.
Recent geopolitical disruptions have led to an LPG supply crunch, forcing prioritisation of household consumption while commercial users are facing shortages. The government may focus on commercial kitchens like hotels and restaurants for large-scale implementation, as per the report.
“The government is aware of both the emerging ethanol surplus and the current supply-side challenges in LPG. A detailed ‘White Paper’ will be submitted to the committee for a conducive policy," the source said. Officials are expected to assess technical feasibility, pricing and distribution logistics before arriving at a decision.
Bharati Balaji, deputy director general of All India Distillers’ Association (AIDA) said the crisis highlighted the need to diversify India’s energy mix to avoid over-dependence on a single imported cooking fuel.
Furthermore, India currently has a surplus of nearly 1,000 crore litres even after meeting 20% ethanol blending mandate. During the ethanol supply year (ESY), which runs from November to October, more than 353 crore litres were blended by February 28, at an average blending rate of 20% in petrol.
Additionally, hydrous ethanol, which contains around 95% ethanol and a small amount of water, is cheaper than fuel-grade ethanol. “If we compare on a per kg basis, commercial LPG is around Rs 103, whereas hydrous ethanol comes to around Rs 70 per kg," Balaji said.
Hydrous ethanol is sometimes used as a fuel in alcohol stoves or bio-ethanol burners, but it has certain drawbacks, such as low energy.
“Ethanol has a lower calorific value compared to LPG, at around 7,100 calories per kg versus roughly 12,000 calories per kg for LPG. While this means higher volumes may be required, ethanol offers cleaner combustion and energy security advantages," Balaji further said.
Source: News18