Union minister Nitin Gadkari has announced that auto manufacturers will be required to add biofuel-compatible vehicles to their portfolio in the next six months. Chief among the factors prompting this action is that it reduces our dependence on oil imports and is deemed to be much cheaper than the current price of petrol. By making flex fuel engines mandatory, the government also hopes to give a much-needed boost to India’s agricultural sector, using up the existing surplus of sugarcane, corn and wheat to produce the ethanol needed.
The Union transport minister went on to state that a network of ethanol petrol pumps will be set-up in the stipulated six-month period giving access to E100 or pure ethanol which can only be used by flex fuel vehicles (FFV). He further stated that making provision for ethanol’s widespread availability was the responsibility of the government. At present, only 2% of the transport sector’s fuel requirements are being met by biofuels.
So, what exactly must car companies do, in order to comply with the government directive? How does a car become flex fuel compatible?
Flex fuel vehicles run on a blend of petrol and ethanol or pure ethanol. Current regulations allow for a 10% blend only (E10) with a proposed 20% ethanol blend in petrol scheduled to be introduced in 2025. However, due to supply-related issues, E10-blended petrol is only available in 15 states, according to an article in Business Standard. For their part, oil giants like Indian Oil are looking to make an investment of over Rs 2,500 crore to enter ethanol production. State governments are also investing heavily to upgrade sugar mills to produce ethanol along with sugar.
Impact on the carmakers
Among the expected changes needed to be made to a petrol vehicle are the way fuel injectors work, allowing for higher levels of ethanol in the combustion chamber, given that ethanol has 25% less energy than petrol and therefore more of it is needed in the combustion chamber to produce the same results.
As the automotive industry prepares for rapid electrification, while reeling from the not-entirely-gradual shift to BS6 emissions and the expenses they undertook to make the cars BS6-compliant, prepping to make cars flex fuel compatible would count as another inconvenience. Given the corrosive and hygroscopic nature of ethanol, the safeguards that need to be built-in will have to include prevention of deterioration of rubber parts, etc.
At present, the Ministry of Heavy Industries hasn’t provided any specifics on the alterations that would need to be made to petrol-powered cars. The extent of investments that will have to be made to automotive production lines also remains unclear, although the Ministry of Petroleum and Natural Gas has highlighted that no “significant change in the assembly line is expected”, according to a committee report by the Ministry of Power and Energy. They have stated, however, that manufacturers will need to liaise with a new set of vendors for “the procurement of additional components compatible with E20”.
The higher the blend, the more extensive the changes, which is why it’s preferable to have a vehicle that can run on either petrol or E100, i.e 100% ethanol, thereby requiring no additional changes. Once a car officially qualifies as a flex fuel vehicle, it doesn’t matter what blend of petrol you put in it. For now, manufacturers’ only request to the government is that E20 petrol be made available across India, and not on a state-by-state basis.
How is it likely to impact the consumer?
The committee report by the Ministry of Power and Energy, titled “Roadmap for Ethanol Blending in India”, states that there is a 6-7% loss of fuel efficiency in four-wheelers using E20 fuel. However, it must be taken into account that E100 will be sold at 30% lower cost than gasoline.
The report also states that ethanol is not suited to high compression engines and that the vehicles designed for low or nil content of ethanol in petrol cars will result in lower fuel economy if used with higher fuel blends.
According to an assessment by the Society of Automobile Manufacturers (SIAM), the changes required from the manufacturers to make vehicles more flex fuel compatible, will result in a price hike of up to Rs 25,000. For two-wheeled FFVs, the cost would go up between Rs 5,000 to Rs 12,000.
How is it likely to impact emissions?
The use of ethanol-blended petrol is known to have a direct effect on reduced emissions. According to studies conducted and published by NITI Aayog, carbon monoxide emissions in four-wheelers were 30% lower with the use of E20 fuel. Similarly, hydrocarbon emissions saw a 20% drop with both E10 and E20 levels of ethanol blend.
According to SIAM’s “White Paper on Alternative Fuels for Vehicles”, there is a trade-off. Ethanol blends have a higher Reid Vapour Pressure, resulting in higher evaporative emissions, which, according to the paper, can impact the ambient zone. This could lead to higher secondary particulate formation which can “negate the efforts being taken to reduce the particulate emission load from vehicles”.
SIAM claimed that the trade-off can be countered with technological and infrastructural safeguards but cautioned against proceeding to make concrete plans for higher blends of ethanol without checking the environmental and safety concerns.
Read more: Flex fuel and water: What a high level of ethanol means for you and your vehicle
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
