Indian oil companies 60 percent short of E5 mandated usage as India releases E10 specifications

The Bureau of Indian Standards will release its specification for E10 in March 2008. The country is scheduled to move to E10 in October 2008 at the beginning of the next sugar season.

Following the imposition of an E5 mandate in October, oil companies have blended only 58 million gallons, compared to the 145 million gallons required under the mandate.

Reports continue to pour in that India is far from ready for the E10 mandate that will be imposed next October. Oil companies were directed to commence blending E5 blending in October, but have not procured enough ethanol to meet the mandate.

Reports have been published stating that the industry have procured less than 40 million gallons towards their expanded ethanol goal for next year. Further, older vehicles will not be E10 compatible, and new cars from Suzuki and Hyundai are not E10 compatible also.

The Standing Committee on Petroleum and Natural Gas has asked the Indian Government to report on the availability of domestically produced ethanol, after multiple reports by Indian Sugar Mills Association (ISMA), All India Distillers’ Association (AIDA), and the Indian Chemicals Manufacturers Association (ICMA) have created confusion over the amount of domestic supply.

In the past three months, questions have been raised about the ability of the country to cultivate sufficient crops to produce ethanol to meet current and future mandates.

Currently, high oil prices and the Indian sugar glut is creating strong demand for ethanol plants among sugar producers and those affected by high oil prices.

However, researchers indicate that India will need 4,000 liters of water for every liter of ethanol produced — acceptable for water-laden Brazil, but not viable in India given the looming water shortage. 60% of Indian water supply is currently diverted to human use, according to a International Water Management Institute study.

The researchers point out that it will require 26% of India’s water supply to produce enough ethanol to meet a 10 percent mandate.

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