Informist, Wednesday, Sep 25, 2024

--Petroleum secy: Increased demand for CNG a risk for ethanol
--CONTEXT: Petroleum Secy Jain speaking at ISMA conference
--Petroleum secy: Sugar cos must focus on new avenues apart from ethanol

NEW DELHI - With the demand for conventional auto fuels moderating, the sugar industry must look at diversifying beyond ethanol to sustainable aviation fuel, compressed biogas, and potash, according to Petroleum Secretary Pankaj Jain.

"Much as we may want to be looking at more and more ethanol in the world... vehicle owners are shifting away from petrol," Jain said at the second day of the India Sugar & Bio-energy conference hosted by the Indian Sugar & Bio-energy Manufacturers Association here today.

The secretary stressed that demand for petrol is set to gradually decline, which is being indicated in the growing demand for compressed natural gas-run vehicles. "Today, the largest car manufacturer in India is reporting that one-third of its sales are CNG... CNG-run car models are not just after petrol, much more than diesel models, much more than EV models," Jain said.

Oil companies buy ethanol to blend with petrol to promote green mobility. However, increasing demand for electric vehicles and hybrid vehicles that run on petrol and batteries is poised to be challenging ethanol demand. Jain said the sugar sector can de-risk themselves by diversifying to other green energy avenues.

The Indian Sugar & Bio-energy Manufacturers Association recently signed a memorandum of understanding with The Energy and Resources Institute and Praj Industries Ltd to collaborate on sustainable aviation fuel production, aligning with the government’s sustainability goals.

India has set an initial indicative target of blending 1% sustainable aviation fuel with aviation turbine fuel for international flights by 2027 and 5% by 2030. The aviation industry annually accounts for 1 bln tn, or 3% of global carbon emissions, pressing the necessity for an alternative to traditional jet fuel, according to the industry association.

Later, speaking to reporters on the sidelines of the event, Jain said the pricing of ethanol from sugarcane feedstocks for the upcoming ethanol year starting November is with the Cabinet without giving details.

Rates of ethanol derived from sugarcane feedstock, namely sugarcane juice and B-heavy molasses have not been hiked since the 2022-23 ethanol supply year (Nov-Oct). Currently, ethanol produced from cane juice is priced at 65.61 rupees per litre, while ethanol from B-Heavy and C-Heavy molasses are priced at 60.73 rupees and 56.28 rupees per litre, respectively. End

Reported by Afra Abubacker and Pallavi Singhal

Edited by Saji George Titus

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

Informist Media Tel +91 (11) 4220-1000

Send comments to feedback@informistmedia.com

© Informist Media Pvt. Ltd. 2024. All rights reserved.