AIDA Eyes E30, Flex-Fuel Vehicles to Drive Next Phase of Ethanol Growth

The All India Distillers' Association (AIDA) is advocating greater adoption of flex-fuel vehicles and exploring higher ethanol blending levels, including E30, as potential avenues for expanding domestic ethanol consumption. With India having achieved E20 blending, the association is looking to strengthen collaboration with automobile manufacturers, oil marketing companies and policymakers to support the next phase of ethanol adoption in the transport sector.

AIDA President Vijendra Singh said the achievement of E20 represented an important milestone for India's energy security, agricultural economy and environment. However, he emphasised that the industry needed to look beyond the existing blending programme and identify additional opportunities for ethanol consumption, particularly through flex-fuel vehicles.

Addressing an industry gathering, Singh said AIDA had been advocating flex-fuel vehicle technology as a long-term solution for expanding ethanol use in road transport. Referring to Brazil's experience, he highlighted the potential for vehicles capable of operating on high-ethanol blends to create additional demand for domestically produced fuel and reduce dependence on imported petroleum.

Singh said the necessary technology was already available and welcomed what he described as recent policy developments supporting flex-fuel vehicles. He emphasised that greater coordination among automobile manufacturers, fuel suppliers and other stakeholders would be necessary to support vehicle availability, fuel dispensing infrastructure and wider commercial adoption.

The AIDA president also discussed the possibility of increasing ethanol blending beyond E20, including levels of up to 30%, as another opportunity to expand domestic ethanol consumption. He presented higher blending levels and flex-fuel vehicles as potential directions for the industry, without specifying an implementation timeline.

Singh also defended the E20 programme against criticism surrounding vehicle compatibility, fuel efficiency and consumer concerns. He credited automobile manufacturers, oil marketing companies and other stakeholders for their contributions to the blending programme while acknowledging that technical issues and consumer concerns needed to be addressed.

According to Singh, cooperation between the government, industry, farmers and fuel suppliers had been instrumental in achieving E20 blending. He said AIDA would continue advocating measures aimed at increasing ethanol consumption while addressing the technical and commercial requirements associated with higher blends.

Research and Automaker Collaboration

Bharati Balaji, Deputy Director General of AIDA, said the association was strengthening its engagement with automobile manufacturers, oil marketing companies, technology providers and research institutions to address challenges associated with alternative fuel adoption.

Balaji said AIDA had undertaken two technical studies during 2026, covering subjects related to feedstock sustainability, flex-fuel vehicles and ethanol. The work forms part of the association's efforts to strengthen evidence-based policy engagement and provide technical inputs on issues affecting the biofuel ecosystem.

She highlighted the importance of examining the entire value chain, including feedstock availability, fuel production, quality standards, vehicle compatibility, technology development and market adoption.

According to Balaji, AIDA had been organising industry roundtables on ethanol blending, alternative fuels and emerging technologies. Its recent green energy seminar also examined the role of alternative fuels in India's mobility transition.

Balaji said the association had intensified its engagement with government ministries, regulatory authorities and technical committees by submitting policy representations, analysing technical data and providing inputs on issues affecting its members.

She added that AIDA was seeking to bring different stakeholders onto common platforms to examine technical challenges, exchange knowledge and identify possible solutions.

Pricing Pressures and Emerging Opportunities

While outlining opportunities for increasing ethanol consumption, Singh also highlighted financial pressures facing distilleries. He said ethanol procurement prices had not kept pace with rising production costs, affecting industry margins and the commercial viability of further investments.

The AIDA president also expressed concern over a reduction in incentives available to ethanol producers and called for their restoration. He argued that a supportive pricing framework was necessary to encourage additional investment, maintain production capacity and support the industry's long-term sustainability.

Singh also referred to constraints surrounding feedstock availability and sugar diversion for ethanol production. He indicated that the prevailing sugar supply situation could limit the availability of certain feedstocks for ethanol manufacturing, although he expected the situation to improve over time.

Beyond road transport, Singh identified sustainable aviation fuel (SAF) as another potential opportunity for ethanol producers. He said SAF could provide an additional market for the industry, particularly when ethanol production exceeds existing demand, while acknowledging challenges involving technology, capital investment, commercial viability and market development.

He also highlighted opportunities in bio-CNG and other emerging biofuel technologies, identifying diversification as an important area for the industry.

Balaji, meanwhile, said AIDA was expanding international collaboration to exchange knowledge on biofuel technologies, policy frameworks and models of adoption. The association has also introduced a global membership category for international associations and organisations to support longer-term partnerships.

Looking ahead to 2027, Balaji said AIDA intended to strengthen its research capabilities, policy engagement and industry representation. She identified closer collaboration across the biofuel value chain, including automobile manufacturers, fuel producers and technology providers, as an important priority for the association.

Together, the two addresses outlined AIDA's priorities for expanding ethanol consumption beyond existing blending levels, encouraging flex-fuel vehicle adoption and strengthening the technical and commercial framework supporting India's biofuel industry.