Guwahati, Feb 26 – India is considering raising its ethanol blending target beyond 20% as part of its push for cleaner fuel alternatives. Petroleum Minister Hardeep S Puri announced this development at the Advantage Assam 2.0 business summit, highlighting that a committee under NITI Aayog has been formed to explore the feasibility of exceeding the 20% target.
The country has already achieved a 19.6% ethanol blend in petrol, nearing its goal of 20% by 2026 well ahead of schedule. “I am confident that we will touch 20% next month,” Puri stated. India currently has a blending capacity of 1,700 crore liters, with 1,500 crore liters already in use.
Push for Green Hydrogen
With India spending approximately $150 billion on fuel imports, the minister emphasized the need to accelerate the shift towards green hydrogen. Currently priced at $4.5 per kg, Puri noted that reducing the cost to $2.5 per kg could trigger a significant transition from conventional fuels to green hydrogen.He pointed out that global economies are shifting towards clean energy but must balance sustainability with economic growth. “For an economy growing at 6-7%, fuel is essential. We need to manage the present while working towards a cleaner future,” he added.
Energy Demand and Hydrocarbon Exploration
India’s crude oil consumption has risen from 5 million barrels per day to 5.5 million barrels per day, with projections reaching 6.5–7 million barrels per day in the medium term. Despite developmental challenges, Puri reaffirmed that all fossil fuel production companies in India are on track to achieve net-zero emissions by 2045.On the exploration and production (E&P) front, India aims to increase its hydrocarbon output to 5 million tonnes by 2030. Puri highlighted ongoing discussions with major global energy firms, including Shell, British Petroleum, and Chevron, who have shown interest in India’s energy sector.
To enhance exploration, 1 million sq km of sedimentary basin will be made available under the Open Acreage Licensing Programme (OALP), out of a total of 3.5 million sq km. Already, 200,000 sq km has been opened up under the program, with 38% of bids in OALP Round 9 focused on these areas. The upcoming OALP Round 10 is expected to attract even greater participation.
With these strategic initiatives, India is positioning itself as a major player in the global energy transition while ensuring economic stability and energy security.