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Mandatory 10% Ethanol Blending?
By Mr Ethanol | September 3, 2007
Competition for ethanol could affect prices.
Economic Times:
As a principle, the decision to blend petrol with ethanol is welcome, the ostensible reasons being its environmental friendliness and saving on import of crude oil. A similar decision was taken a couple of years ago for blending 5% on an optional basis and that has not yielded desired results. Making it mandatory now only obliges oil marketing companies to do so and not the state governments, whose lack of enthusiasm could scuttle the proposal.
A mere decision to make it mandatory without ensuring forward and backward linkages in the supply chain will be of little avail. BIS specification is required to be revised. Studies are required by vehicle manufacturers relating to startability/driveability, emissions and engine durability. Concerns about material compatibility and ECU calibration are to be addressed. Refinery process adjustments are also required for blending 10% ethanol. Industry sources also point out to the lack of severity in the distillation process in the country to ensure fuel grade ethanol that should be100% water-free.
While most of the above are controllable factors, what could bedevil the scheme are the non-controllable ones in the ethanol market that could affect supplies on a sustained basis, of consistent quality and content, throughout the country and at all times…
Topics: Ethanol Prices, Market, News |
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