1. ELECTRIFIED FLEX FUEL VEHICLE

Flex Fuel Vehicle (FFV)

India launched the world''s first prototype of the BS 6 Stage II ‘Electrified Flex Fuel Vehicle’, developed by Toyota Kirloskar Motor.

FFV differ from bi-fuel vehicles by the fact that two fuels are stored in the separate tanks and engine runs on one fuel at a time in the latter.

• Flexible fuel- It typically has an internal combustion engine (ICE), but unlike a regular petrol vehicle, it can run on more than one type of fuel, or a mixture of these fuels.
• The most common versions use a blend of petrol and ethanol or methanol.
• FFVs are also known as dual-fuel vehicles.
• They are capable of running on 100% petrol or 100% bio-ethanol or a combination of both.
• E20 fuel- The original equipment manufacturers (OEMs) in India have already introduced vehicles that are compatible with E20 fuel (petrol blended with 20% ethanol).
• The Government aims to achieve a complete 20% blending of ethanol by 2025
• Flex Fuel Strong Hybrid Electric Vehicles (FFSHEV)- When FFV is integrated along with strong hybrid electric technology, it is referred as FFV-SHEVs.
• It essentially houses an electric motor which powers the vehicle alongside the traditional petrol engine.
• Electrified Flex Fuel Vehicle– It is a 100% ethanol-fuelled variant.
• It is being seen as a broader push by the government for using alternative fuels like hydrogen, flex-fuel, biofuel etc.
• Need for flex fuel- To reduce carbon footprint and decrease the country’s dependency on traditional fuel sources.
• This car will be the world’s first BS-VI (Stage-II), which would also generate 40% electricity bringing the effective price of ethanol much lower.

What is Hycross Prototype?

• Engine - Toyota’s Innova Hycross flex-fuel prototype comes with the 2-litre Atkinson Cycle petrol engine coupled with an electric motor.
• The Company claims the prototype can run on petrol with more than 20% ethanol blending that is currently mandated in India.
• Performance- It would be at par with the standard Hycross hybrid, even with ethanol-blended petrol.
• Low carbon emission- This will be achieved “on a comprehensive well-to-wheel basis”.
• Energy storage- It would run 60% of the time in the electric vehicle mode using energy stored in the battery pack, same as standard strong hybrid variant.
• Ethanol belnding- Flex-fuel vehicles such as the prototype Hycross can run on blends of ethanol that are far higher than the current standard 20% mix (E20).
• Fuel ratio- This is made possible by equipping the engine with a fuel mix sensor and an engine control module (ECM) programming that senses and automatically adjusts for any ratio of designated fuels.

Air fuel ratio is defined as the ratio of air and fuel of a mixture prepared for combustion.

How do flex fuel cars work?

• Components- Most components are the same as those in petrol-only cars.
• Ethanol compatibility - Special ethanol-compatible components are required to adjust to the different chemical properties and energy content in ethanol/ methanol, such as modifications to the fuel pump and fuel injection system.
• Accommodate oxygen- It is also calibrated to accommodate the higher oxygen content of ethanol.
• Corrosion resistant- The hybrid engine of the type used in the Hycross would have separate spark plugs, piston ring tops, and valves to render them more corrosion-resistant.
• Catalyst- A modified catalyst in the exhaust system is used to lower hydrocarbon emissions.
• The vehicle’s fuel filter and fuel lines have also been tweaked.

Advantages of flex fuel vehicle

• Cheaper - Ethanol is actually cheaper than petrol and diesel, and a higher blend of ethanol in petrol can help the government keep fuel prices in check.
• Reduce import bill- The program is the part of the broader strategy to cut dependence on imported crude in the medium-to-long run.
• The expected implementation of E20 by April 2025 is estimated to result in annual savings of Rs 35,000 crore in India’s oil import bill.
• Reduce harmful emissions- The use of ethanol blending lowers harmful pollutants such as carbon monoxide, sulphur, and carbon and nitrogen oxides.
• Sustainability - Ethanol is a natural byproduct of plant fermentation, which makes it much more sustainable as compared to petrol or diesel.
• Improved performance- Fuel economy is generally lower with increased levels of ethanol, many flex fuel vehicles have improved acceleration performance when operating on higher ethanol blends.
• Easier to adopt - Flex-fuel vehicles are easier to adopt as compared to a fully battery-powered electric vehicle.
• A host of vehicles in India, including mass-market two-wheelers and cars are already E20 fuel compliant.

The National Biofuel Policy 2018 envisages a 2025 target of 20% blending.

BRAZIL MODEL

• Varying fuel mix- Countries such as Brazil can be flexible on the degree of the mix depending on crude prices, varying it when energy prices rise like they did after the Ukraine war.
• Fuel blend- In Brazil, nearly all cars are required to be able to handle fuel blends with a minimum of 22% ethanol.
• Subsidy- Brazil provides government subsidy to narrow the price gap of higher ethanol blends, in order to make the proposition viable.

What are the issues with flex fuel vehicle?

• Fuel efficiency- Fuel efficiency takes a hit when ethanol is used as motive power.
• Water intensive- The source crops required for ethanol blending such as sugarcane are usually water guzzling crops.
• According to a NITI Aayog report, in 2019-20, more than 90% of the ethanol produced in the country came from sugarcane, which is a politically important crop in states such as Maharashtra and Uttar Pradesh.
• Manufacturing - Higher blending of ethanol will mean higher manufacturing costs which translates to pricier vehicles.
• Certain auto parts, especially those that come in contact with higher ethanol content, will have to be replaced with a compatible product to avoid corrosion.
• Tax benefits - As of now, flex-fuel vehicles carry a 28% GST, as against the 5% GST rate applicable on EVs. Tax benefits would result in the faster adoption of flex-fuel vehicles.

2. BS-VI Norms

• Bharat stage (BS) emission standards are laid down by the government to regulate the output of air pollutants from internal combustion engine and spark-ignition engine equipment, including motor vehicles.
• India has adopted BS Emission Standards since 2000, modelled on European Union norms.
• The first emission norms with the name ‘India 2000’ were introduced in the year 2000. BS2 and BS3 were introduced in 2005 and 2010, while BS4 norms came into effect in 2017 with stricter emission standards or norms.
• The BS standards regulate tailpipe emissions of air pollutants, including particulate matter, SOx, and NOx, as well as carbon monoxide, hydrocarbons, and methane.
• Who sets them? The standards and timeline for implementation are set by the Central Pollution Control Board under the Ministry of Environment, Forests and Climate Change.
• In April 2020, India leapfrogged from BS-IV to the implementation of BS-VI. The central government has mandated that vehicle makers must manufacture, sell, and register only BS-VI (BS6) vehicles from April 1, 2020.
• It is applicable for cars, trucks, buses, three-wheelers, and two-wheelers (motorcycles, scooters, and mopeds).
• This emission norm does not apply to off-highway equipment and vehicles such as tractors, back-hoe loaders, excavators, etc.

Difference between BS-IV and BS-VI

• Both BS-IV and BS-VI are unit emission norms that set the maximum permissible levels for pollutants that an automotive or a two-wheeler exhaust can emit.
• Compared to BS4, BS6 emission standards are stricter.
• The main difference is in the amount of sulphur in the fuel, which is reduced from 50 ppm in BS IV fuel to 10 ppm in BS VI fuel for both gasoline and diesel. Hence, BSVI engines produce less harmful emissions and pollutants.

3. BIO FUEL POLICY

Biofuel is a type of fuel that is generated naturally or artificially from the biomass of plant or algae material, and animal wastes. It is considered a renewable energy source because the feedstock material can be replenished easily. They can be in solid, liquid, and gaseous forms but the liquid biofuels have the most potential to replace conventional transportation fuels.

With rising crude oil prices, biofuels are seen as a sustainable alternative to be used mainly as a blending with petroleum-based fossil fuels. India also has set targets of 20% ethanol blending in petrol and 5% biodiesel blending in diesel by 2030 under the National Policy on Biofuels 2018.

Types of Biofuels

Many types of biofuels with different chemical compositions and physical properties are derived from biomass. They can replace traditional fossil fuels based on application suitability.

• Biodiesel: Biodiesel is a liquid fuel produced from vegetable oils and animal fats through transesterification.
• It is used as a replacement or as a blending with petroleum-based diesel in various combinations such as B5, B20, B100, etc.
• B20 (commonly used due to cost-effectiveness, low emissions and compatibility with conventional engines) is a blend containing 20% biodiesel and 80% petroleum diesel.
• B100 (less commonly used) is a pure biodiesel.
• Bioethanol: Bioethanol is ethyl alcohol (Ethanol) generated through microbial fermentation of plant materials like corn, sugarcane or agricultural residues using Saccharomyces cerevisiae.
• It is mainly used as a blending agent with petrol to increase octane and cut down carbon monoxide and other harmful emissions.
• E10 (10% ethanol mix) is the most commonly used blend, but other variations such as E-20 (blending target in India) are also used.
• E100 is pure ethanol and many countries including India are working on projects to use it as a replacement for petrol.
• Flexible fuel vehicles can run on up to 85% ethanol blends (E85).
• Biogas: Biogas is a renewable fuel produced by anaerobic digestion of organic matter, such as food or animal waste, in an oxygen-free environment, either naturally occurring or intentionally created for industrial use.
• It mainly consists of methane, with trace amounts of CO2 and H2S, etc.
• It is used for heating, power generation and vehicle fuelpurposes providing an alternative to natural gas.
• Upgraded biogas can also displace transportation and pipeline-quality natural gas.
• Bio CNG: Bio CNG is a purified form of biogas, processed to produce 95% pure methane gas, similar to commercially available natural gas.
• The process residue is a high-quality concentrated liquid fertilizer, and CO2 is measured and packed for food-grade CO2.
• Bio-CNG is profitable due to multiple revenue streams for organic liquid and solid fertilizers.
• It has a similar calorific value to Compressed Natural Gas (CNG) and involves commercial refining to increase methane content. The raw material is segregated biodegradable waste.
• Biobutanol: Biobutanol refers to butanol produced from the fermentation of biomass feedstocks such as starch.
• It is unmixable in water and has a higher energy content, It can be added to diesel to reduce emissions.
• The energy content in butanol is the highest among the other gasoline alternatives.
• Biojet fuel: Bio-jet fuel is aviation biofuel derived from biomass through various conversion processes such as Fischer-Tropsch synthesis or synthesized paraffinic kerosene (SPK) hydrotreating to yield a similar composition as conventional jet fuel.
• Benefits include reduced particulate emissions, carbon footprint and contrail formation with drop-in capability for existing aircraft fleets.
• However, availability constraints have restricted adoption to minor demonstration flights as of now.
• Renewable Diesel: Previously known as green diesel, chemically resembles petroleum diesel but is made from biomass feedstocks.
• It is produced by hydrotreating vegetable oils and waste oils in the presence of catalysts and hydrogen under high temperatures and pressure (similar to grease oil).
• This improves combustion efficiency compared to biodiesel while avoiding NOx emissions.
• It has superior storage stability and cold temperature operability than biodiesel and can directly replace diesel without engine modifications.
• Biochar: It is the spectrum of black carbon, produced by thecontrolled process - pyrolysis of organic materials from forests and agricultural wastes.
• It resembles normal wood charcoal.
• The main objective for the production of biochar is its use in carbon sequestration.
• It is speculated to have been used as a soil supplement in the Amazon basin thousands of years ago, where the regions of fertile soil known as "Terra Preta''" (dark earth), were created by the indigenous people.
• Bio-methanol: Bio-methanol or renewable methanol is chemically identical to conventional methanol but produced from syngas obtained from the gasification of renewable feedstocks like crop residues or wood waste. Still in the demonstration phase globally.

Other conceptual biofuel variants like bio-dimethyl ether, bio-synthetic natural gas, and biohydrogen may gain prominence in future.

Generations of Biofuels

Biofuels have evolved through different technological generations based on the type of organic feedstock used in the production:

Advantages and Applications of Biofuels

Biofuels provide several technical, economic and environmental benefits that make them promising substitutes for conventional fossil fuels.

• Energy security: Encouraging domestic production of biofuels can help reduce dependence on imported fossil fuels, thereby enhancing energy independence and supply resilience.
• In India, the current E10 and E20 ethanol blending targets will help reduce the country''s oil import burden by $4 billion per year while also supporting the sugar industry economically.
• Rural economy: Additionally, farmers can earn additional revenue by selling raw materials like grain, sugar, or oilseeds to biofuel manufacturers, and 
• They can also generate extra income by cultivating agricultural residues and dedicated energy crops.
• Environmental gains: Biofuels recycle carbon during their lifetime, unlike fossil fuels that have been buried for a long time, and therefore utilising biofuels does not increase atmospheric CO2 if replantation sustains feedstock supplies.
• Furthermore, biofuels have lower particulate emissions.
• Biofuels burn cleaner with less sulfur and carbon monoxide emissions.
• Some biofuels such as biochar are being used for carbon sequestration in the soil.
• They will help India’s environmental programmes such as the Swachh Bharat Mission and Waste to Wealth Creation.
• Compatibility factor: To make bioethanol and biodiesel suitable for engines and distribution infrastructure, they can be combined with current petrol and diesel supplies.
• Biofuels are mainly used in transportation as a fuel substitute, but they can also be used in smaller applications such as captive power generation, off-grid electricity supply, and power backup.
• The aviation sector is investigating blends of biofuel to lessen their carbon footprint.

Disadvantages of Biofuels

There are numerous challenges to the development and harnessing of biofuels including the debate of food vs fuel, skewed cropping patterns, water stress market constraints etc.

• Food vs Fuel Debate: In the case of 1st and 2nd Generation Biofuels, using food crops like sugarcane and edible oilseeds for energy production may impact their availability for food consumption.
• India aims to achieve 20% ethanol blending with petrol by 2025-26, largely achieved through 1G ethanol from sugar cane and food grains.
• However, this large-scale cultivation may disrupt land use patterns, displacement of food crops, and increase water scarcity in water-stressed regions.
• Suboptimal crop residue management: Unsustainable removal of agricultural residues from the field can harm soil quality, water retention, and long-term productivity.
• Cost competitiveness: Biofuels like ethanol and biodiesel are not yet fully cost-competitive with petrol and diesel when considering production, distribution costs, and taxes/duties.
• Technological barriers:
• Second-generation biofuels still face challenges like high costs, low yields, feedstock logistics, etc., requiring further research and development improvements.
• In the case of 3rd and 4th generation, Algal feedstock growth requires overcoming challenges in maintaining optimal environments.
• 4th generation biofuel techniques are still being developed and face uncertainty around commercial scalability.

Global Initiatives for Biofuels

Globally, the use of biofuels is gaining importance due to growing concerns about energy security and the environment. Many countries are leading in the production and usage of biofuels such as Brazil (largest producer of bioethanol), EU (largest producer of biodiesel), USA, etc.

• Global Biofuel Alliance: Led by India, it was launched at the G20 summit and aims to develop an alliance of governments, international organisations, and industry to facilitate the adoption of biofuels.
• The alliance will focus on strengthening markets, facilitating global biofuels trade, developing concrete policy lesson-sharing, and providing technical support for national biofuels programs worldwide.
• Report on ‘Bioresources within a Net-Zero Emissions Economy’ (Energy Transitions Commission): It recommends prioritising the use of biomass in sectors where there are limited low-carbon alternatives.
• Roundtable on Sustainable Biomaterials (RSB): It is an international initiative that brings together stakeholders such as farmers, businesses, and governments who are interested in the sustainability of biofuel production and distribution.
•  It prescribes the "RSB Certification System" as a set of comprehensive sustainability standards.
• Sustainable Biofuels Consensus: Itis an international initiative that aims to build collaboration among various stakeholders, including governments and the private sector, to ensure the sustainable production, trade, and use of biofuels.
• It facilitates global biofuels trade, transport, and biofuels markets.

Initiatives in India

The Indian Government has acknowledged the strategic role of biofuels in the Indian energy basket and prepared a road map to facilitate the early adoption of biofuels.

Amendments to the National Policy on Biofuels

• Ethanol, or ethyl alcohol, is a hydrocarbon that when burnt can generate heat and power engines. Since two decades, India has been moving towards putting in place an ecosystem to have more ethanol blended into petrol for use in vehicles, particularly 2- and 4-wheelers. Government records suggest about 75% of India’s 220 million vehicles are 2-wheelers and 12% are 4-wheelers. Another proactive step in this regard has been taken by the government by amending the National Policy on Biofuels, 2018. The amendment has advanced the date by which fuel companies have to increase the percentage of ethanol in petrol to 20%, from 2030 to 2025. The policy of introducing 20% ethanol is expected to take effect from April 1, 2023.

History of ethanol blending in India

• Since 2001, India has tested the feasibility of ethanol-blended petrol whereby 5% ethanol blended petrol or E5 (95% petrol-5% ethanol) was supplied to retail outlets. In 2002, India launched the Ethanol Blended Petrol (EBP) Programme and began selling 5% ethanol blended petrol in nine States and four Union Territories. It was extended to twenty States and four UTs in 2006.
• In 2015, the Ministry of Road Transport and Highways notified that E5 petrol and the rubber and plastic components used in gasoline vehicles produced since 2008 be compatible with theE10 fuel. Since 2020, India has been announcing its intent to achieve 10% blending by the end of 2022 and 20% blending by 2030. The Centre has also targeted 5% blending of biodiesel with diesel by 2030. 

Current status of Ethanol Blending

• According to the Ministry of Petroleum and Natural Gas, the all India average blending stands at 9.90 (as of May 2022). Letters of Intent for supply of 468.56 crore litres of ethanol were issued at the start of this Ethanol Supply Year, out of which 415.88 crore litres has been contracted and 186.21 crore litres supplied so far. 
• Ethanol derived from sugarcane juice/sugar syrupand from C heavy molasses forms the bulk of this supply, with that from surplus rice and damaged food grains being a distant second. Around 16 lakh tonnes of sugar was subsumed to produce this ethanol.
• India’s current ethanol production capacity consists of 426 crore litres from molasses-based distilleries, and 258 crore litres from grain-based distilleries.

International experience

• Flex Fuel Engine technology (FFE), or vehicles that run entirely on ethanol, are popular in Brazil and comprise nearly 80% of the total number of new vehicles sold in 2019. The global production of fuel ethanol touched 110 billion litres in 2019, or about an average growth of 4% year per year during the last decade. 
• The U.S. and Brazil make up 92 billion litres, or 84% of the global share, followed by the European Union (EU), China, India, Canada and Thailand.

Salient features of National Biofuel Policy 2018

Introduced in 2018, the National Biofuel Policy is aimed at reducing dependence on imports by encouraging fuel blending. 

• The Policy categorizes biofuels as – (a) “Basic Biofuels” viz. First Generation (1G) bioethanol & biodiesel and (b) “Advanced Biofuels” – Second Generation (2G) ethanol, Municipal Solid Waste (MSW) to drop-in fuels, Third Generation (3G) biofuels, bio-CNG etc..
• The Policy expands the scope of raw material for ethanol production by allowing use of – (a) Sugarcane Juice, Sugar containing materials like Sugar Beet, Sweet Sorghum; (b) Starch containing materials like Corn, Cassava; (c) Damaged food grains like wheat, broken rice, Rotten Potatoes, unfit for human consumption for ethanol production.
• With a thrust on Advanced Biofuels, the National Policy on Biofuels indicates a viability gap funding scheme for 2G ethanol Bio refineries of INR 5,000 crore in 6 years. The Policy encourages setting up of supply chain mechanisms for biodiesel production from non-edible oilseeds, used cooking oil, and short gestation crops. The National Biofuel Coordination Committee (NBCC), with the Union Minister for Petroleum and Natural Gas as its head, is the agency to coordinate this blending programme.

2022 amendments to the National Policy on Biofuels

• The most important amendment has been advancing the 20% blending date by five yearsfrom Ethanol Supply Year (ESY) 2030 to 2025-26. 
• There has been anintroduction of more feedstock for production of biofuels. Further,  production of biofuels under the ‘Make in India’ programme in Special Economic Zones (SEZs), Export Oriented Units (EOUs); and permission to allow export of biofuels in specific cases are some other changes. Apart from addition of new members to the NBCC, the Committee has now been given the permission to change the policy which it earlier lacked.

Significance of adopting Ethanol Blending of Fuel

Reduce Import Bill:  As per a NITI Aayog Committee report of June 2021, India’s net import of petroleum was 185 million tons at a cost of US$ 55 billion in 2020-21. Most of the petroleum is used by vehicles. A successful 20% ethanol blending programme could save the country US$4 billion per annum, or about INR 30,000 crore.

Environment Benefits: Ethanol burns more completely than petrol, it avoids emissions such as carbon monoxide. One crore liters of E-10 saves around 20,000 ton of CO2 emissions.

Health benefits: Prolonged reuse of Cooking Oil for preparing food, particularly in deep-frying is a potential health hazard and can lead to many diseases. Used Cooking Oil is a potential feedstock for biodiesel and its use for making biodiesel will prevent diversion of used cooking oil in the food industry.

MSW Management: It is estimated that, annually 62 MMT of Municipal Solid Waste gets generated in India. There are technologies available which can convert waste/plastic, MSW to drop-in fuels. One ton of such waste has the potential to provide around 20% of drop-in fuels. (Drop-in fuels are the fuels that can be used without major change in infrastructure. Ethanol blended petrol is a drop-in fuel).

Challenges associated with Ethanol blending

Efficiency: It takes much more ethanol to power a vehicle’s engine than petrol, therefore blending leads to a loss of efficiency. For instance, when using E20, there is an estimated loss of 6-7% fuel efficiency for 4-wheelers which are originally designed for E0 and calibrated for E10, 3-4% for 2-wheelers designed for E0 and calibrated for E10. 

Harmful Residual Products: It also leaves residual by-products that can corrode and damage the vehicle. 

Environmental concerns: On average, a ton of sugarcane can produce 100 kg of sugar and 70 litres of ethanol but that would mean 1,600 to 2,000 litres of water to produce 1 kg of sugar. This implies that a litre of ethanol from sugar requires about 2,860 litres of water.

Further, tests conducted in India have shown that there is no reduction in nitrous oxides, one of the major environmental pollutants.

Is the new target achievable?

Arguments in Favor:

First, the committee report estimates that adoption of electric vehicles should partially offset demand for ethanol leading to a lesser requirement of 722-921 crore litres in 2025.

Second, the test vehicles using E20 fuel worked well in trials as per the committee report. There was not much reduction in performance and capability which should encourage its adoption.

Arguments against:

Poor Implementation: The 5% blending was started in 2002 and considerably expanded to various states and UTs in 2006. However, the proportion has remained low. e.g., the proportion of blending was 1.5% in 2013-14.

High Prices: The prices of ethanol produced in India are higher compared to the U.S. and Brazil, because of the minimum support prices that the government provides. The cost of flex fuel vehicles (4-wheelers) could cost about ₹17,000 to ₹25,000 more than the current generation of vehicles. The 2-wheeled flex fuel vehicles would be costlier by ₹5,000 to ₹12,000 compared to regular petrol vehicles.

Lack of Supply: Various experts have said that in order to achieve 20% blending, India would require a consistent supply of 1,500 crores litres of ethanol annually. This is way beyond the current production capacity.

Fund Crunch: Many cooperative sugar mills have complained about a fund crunch as banks are reluctant to finance them given their weak balance-sheets.

Road ahead

First, vehicles that run on ethanol need to be tuned accordingly so that they don’t compromise on efficiency and usability.

Second, to compensate the consumers for a drop in efficiency from ethanol blended fuels, tax incentives on E10 and E20 fuel may be considered. 

Third, a report by the Institute for Energy Economics and Financial Analysis (IEEFA) says that for India to meet its target, it will need to bring in additional 30,000 sq. km of land under maize cultivation. Further, half of this land can be used to produce clean electricity from solar energy.

Fourth, in order to tackle the fund crunch, mills have asked for tripartite agreements between Oil Marketing Companies (OMCs), banks and cane suppliers to clear payments within 21 days.