ISOBUTANOL DIESEL BLENDING
WHY IN NEWS?
- On 11 September 2025, Union Transport Minister Nitin Gadkari announced that the Automotive Research Association of India (ARAI) is exploring the blending of 10% isobutanol with diesel, after failed trials of ethanol blending with diesel.
- This was stated during the India Sugar and Bio-Energy Manufacturers Association (ISMA)
TIMING OF THIS POLICY
- Comes amid:
- Backlash over 20% ethanol blending with petrol.
- Government push for alternative clean fuels.
- Need to support farmers and sugar mills via biofuel-related income.
WHAT IS ISOBUTANOL?
- Type: Alcoholic compound (C4H10O).
- Properties:
- Used industrially as a solvent in paints, coatings, and plastics.
- As Fuel:
- Higher energy content than ethanol.
- Can be blended with gasoline or diesel.
- Less corrosive and better miscibility with diesel than ethanol.
- Lower water absorption → better storage and engine compatibility.
RATIONALE FOR EXPLORING ISOBUTANOL-DIESEL BLENDING
Ethanol-Diesel Blend Trials Failed
- Ethanol has low miscibility with diesel → causes separation, poor combustion.
- Performance issues in engine trials.
Why Isobutanol?
- Better blending compatibility with diesel.
- Can be used as:
- 10% blend with diesel, or
- Standalone fuel, or
- In flex fuel combinations (e.g., CNG + isobutanol).
Industry Interest
- Tractor and agricultural equipment manufacturers showing interest in using CNG + isobutanol combinations for farm vehicles.
IMPACT ON FARMERS & RURAL ECONOMY
Ethanol Blending Success with Corn
- Helped increase corn prices: ₹1,200 → ₹2,600–2,800 per quintal.
- Farmers earned ₹42,000 crore+ from ethanol-linked corn production.
- Created alternative revenue streams for farmers.
Sugarcane Farmers & Mills
- 96% dues for current season cleared.
- Cane dues at all-time low.
- Blending policy ensures viability of sugar mills and timely farmer payments.
- 40% increase in sugarcane production over 11 years.
- Sugar production up 58%, with 2025-26 production projected at 34.9 million tonnes.
POLICY & INDUSTRY DEMAND
From ISMA (India Sugar and Bio-Energy Manufacturers Association)
- Align FRP (Fair & Remunerative Price) with rising input costs.
- Revise Minimum Support Price (MSP) for sugar (unchanged since 2019).
- Increase sugar export quota by 2 million tonnes in 2025–26.
From Government
- Push for biofuel producers to:
- Scale up production.
- Target global ethanol exports.
- Invest in 2nd and 3rd generation biofuels:
- Sources: bamboo, agricultural residue.
- Diversify single distilleries into multi-product units.
- Focus on sustainable innovation, tech upgrades, and job creation.
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