India's ethanol-blending programme is expected to open a fresh growth avenue for fuel additives, lubricants, and speciality chemical makers, as higher ethanol blends will require changes in fuel chemistry, engine oils, and powertrain design, according to Lubrizol India.
Abhishek Shrivastava, Managing Director, India, Middle East and Africa, Lubrizol, said India's move towards ethanol-blended petrol is sensible from an energy security perspective, but the transition will require coordinated work between additive makers, lubricant companies, fuel suppliers and vehicle manufacturers.
"It is a very sensible move for our economy. But it has to come with a redesign of the powertrain, and a redesign of the chemistry of additives, fuels, engine oils and lubricants. And then infrastructure has to be built around that," Shrivastava told Autocar Professional.
For additive makers, the opportunity lies in developing chemical packages that help fuels and lubricants manage corrosion, moisture absorption, sludge formation, oxidation and compatibility with rubber and plastic components. Lubricant companies use these additives with base oils to make finished engine oils and other fluids used by vehicles, fleets and industries.
"Ethanol burns faster. It captures a lot of moisture. It can cause a lot of corrosion. It is a solvent, so it will dissolve some of the plastics, seals and gaskets. It will cause sludge formation and acid build-up in the engine," Shrivastava said.
India has been pushing ethanol blending to reduce its dependence on imported crude oil, cut emissions and support domestic agricultural feedstock. The country has already moved to 20 per cent ethanol blending in petrol, or E20, ahead of its original 2030 target. The government is also laying the groundwork for flex-fuel vehicles that can run on higher ethanol blends, including E85 and E100.
According to the executive, the challenges arising from ethanol-blended fuel are likely to be more pronounced in small engines, which are widely used in India. Two-wheelers form the largest vehicle category in the country, and their engines are different from those used in Western markets.
"Small engines are even more prone to it. You cannot take a car built in 2010 and say, put ethanol in it. The engine will actually not survive it in a couple of years," Shrivastava said.
This is where additive makers are expected to play a larger role. Fuel additives can help manage water formation and corrosion. Engine oil additives can help protect rubber parts, gaskets and internal engine components. Lubricants will also have to be designed for new friction and heat profiles as India moves across multiple fuel technologies.
Shrivastava said Lubrizol is working with OEMs to understand these requirements and develop suitable formulations for Indian conditions.
"Additives for fuels, for driveline, engine oils and friction management would be significant. But it is also a partnership. We work with OEMs to help understand what is possible and find the right solution," he said.
The ethanol opportunity comes at a time when Lubrizol is expanding its India footprint. The Berkshire Hathaway-owned speciality chemicals company is investing in manufacturing, technology centres, R&D capabilities and partnerships in the country.
Shrivastava said India's broader fuel-diversity strategy, which includes ethanol, CNG, hydrogen and electric mobility, will create different technical requirements for suppliers.
"You talk about EVs, internal combustion engines, CNG-based engines and ethanol-based engines. They will run differently. The friction profiles are different. All these have to be managed through the lubrication system," he said.
The Berkshire Hathaway-owned company currently serves transportation, industrial manufacturing, healthcare, consumer goods, home care, electronics and information technology, beauty and personal care, and other segments across North America, Europe, Asia-Pacific, Latin America and the India-Middle East-Africa region. It offers solutions including lubricant additives, engineered polymers, performance coatings, speciality materials, and others.