The Ethanol Answer To India's Energy Emergency

Expanding ethanol's use across sectors, supported by selective imports and stronger policy mandates, can reduce dependence on crude imports and enhance energy security.

The effective closure of the Strait of Hormuz in March has turned India’s energy vulnerability from theory into reality. With more than 50% of India’s crude oil and natural gas imports transiting this narrow waterway, and with the nation’s total crude and petroleum reserve stock covering for about 60 days, policy action needs to be structural not incremental. The Philippines, which had a greater exposure to this chokepoint, moved to declare a National Energy Emergency on March 24.

To preempt such a scenario, India must respond with commensurate urgency to switch to alternate fuel sources with ethanol as the most immediate lever available. It is a clean fuel, draws on underutilized domestic capacity, and lends price stability when crude prices soar. Ethanol also stands out because India already has the infrastructure to act immediately. Building on domestic supply as the foundation, India’s ethanol pivot must be ambitious with newer sectoral mandates, engineering and standards harmonization, global partnerships and import readiness.

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