In Short : The Indian government is urging the sugar industry to diversify into producing ethanol-diesel blends and green hydrogen, leveraging existing infrastructure to promote sustainable fuel alternatives. This initiative aligns with India’s 20% ethanol blending target by 2025, enhancing energy security and reducing carbon emissions. Diversification also offers sugar mills new revenue streams and supports environmental and economic sustainability.
In Detail : Road, Transport, and Highways Minister Nitin Gadkari on Thursday encouraged the sugar industry to explore various avenues for diversification, including ethanol-diesel blending, flex-fuel engines, and green hydrogen production.
Speaking virtually at the annual general meeting of the Indian Sugar and Bio-Energy Manufacturers Association (ISMA), Gadkari highlighted the need for ethanol and CNG pump infrastructure, calling for active private sector participation.
“There is a huge potential for flex engines, ethanol-based engines, and bio-CNG as alternatives to fossil fuels,” he said.
Five automakers, including Tata Motors, Suzuki, and Toyota, are preparing to launch flex-fuel cars in the market, he added.
Gadkari also urged tractor manufacturers to explore alternative fuel-based tractors to broaden the scope of sustainable mobility.
The minister pointed to untapped export opportunities for ethanol in neighboring countries such as Bangladesh, Bhutan, Nepal, and Sri Lanka, urging stakeholders to consider expanding their markets.
He also emphasised innovative solutions like producing bio-bitumen using lignin and biomass sources and generating green hydrogen utilising existing sugar industry infrastructure.
“I know that making sugar is not an attractive job, but at the same time, because of ethanol, CNG, hydrogen, and other by-products, we can increase the productivity and profitability in the industry,” Gadkari remarked.
Stressing the importance of green hydrogen as a clean energy source, he called for the integration of green hydrogen production into the sugar and ethanol industry ecosystem.
The minister further encouraged the adoption of modern techniques such as nano-fertilisers and drone spraying to enhance sugarcane productivity.
Responding to the industry’s concerns regarding sugar exports and the minimum selling price (MSP), Gadkari assured stakeholders of the government’s support.
“I will try my level best to help you with that because this is very important for the country and for the farmers. We have to find out some way out,” he stated.
These initiatives, according to Gadkari, aim to ensure the sector’s sustainability while safeguarding the interests of both farmers and consumers.