Ethanol Set to Join LPG as a Mainstream Cooking Fuel in Kitchens
Ethanol is set to become a viable cooking fuel in Indian households as the Ministry of Petroleum and Natural Gas develops a policy framework to support its adoption. The initiative aims to reduce reliance on liquefied petroleum gas (LPG) and address the country’s growing fuel import bill. Discussions are ongoing between industry associations and the government regarding subsidy mechanisms and supply chain development for ethanol.
Ethanol as a Cooking Fuel
Ethanol, a renewable fuel derived from the fermentation of sugars and food grains, is being considered as a cleaner alternative to LPG. An executive involved in the discussions indicated that a new clean cooking policy could be ready by September, allowing ethanol to be used alongside LPG. Trials for ethanol-powered cooking stoves are already underway, following government directives issued in April.
To encourage the use of ethanol for cooking, the government may introduce a subsidy scheme, which could involve one-time investment support or ongoing fiscal commitments. India’s annual ethanol production capacity has surpassed 20 billion liters, with an additional 4 billion liters expected this financial year. Currently, around 11 billion liters are utilized in the government’s E20 ethanol blending program, while other sectors consume approximately 3-3.5 billion liters, leaving a surplus of nearly 7 billion liters.
Supply Chain and Infrastructure
Oil marketing companies are actively participating in the initiative, conducting research on ethanol-powered cooking stoves and exploring partnerships for existing technologies. Plans may include the installation of ethanol automated teller machines (ATMs) at retail fuel outlets, allowing consumers to purchase ethanol in canisters for their stoves.
The push for ethanol comes in response to supply disruptions in LPG imports, particularly highlighted by the recent conflict in West Asia. Despite diversifying its LPG sources, India remains heavily dependent on Gulf countries for its LPG supply. In light of these challenges, state-owned oil marketing companies are preparing a strategic LPG storage plan to ensure energy security, capable of meeting nearly 30 days of demand.
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