India has surpassed its 20% ethanol blending target five years ahead of schedule, generating an estimated seven-billion-litre surplus and initiating policy discussions around higher fuel blends like E85 and E100. In this conversation with Autocar Professional, Samir Somaiya, Chairman and Managing Director, Godavari Biorefineries, explains why enabling direct retail of pure E100 in rural production hubs can streamline fuel logistics, boost farmer incomes, and accelerate flex-fuel vehicle adoption across the country.
With domestic ethanol production capacity outstripping current E20 blending mandates, Somaiya argues that permitting local E100 distribution directly from biorefineries cuts unnecessary transport costs while offering rural consumers a lower cost-per-kilometre fuel alternative to petrol. He notes that addressing upfront barriers—such as reducing high GST rates on flex-fuel vehicles and finalizing draft fuel standards—will be essential to driving demand for next-generation biofuels.
The discussion also explores the need for oil marketing companies to transition into broader energy marketing entities, implementing remunerative procurement pricing that reflects rising agricultural feedstock costs, the potential for aftermarket flex-fuel conversion kits, and Godavari Biorefineries' parallel R&D initiatives in compressed biogas (CBG) and dimethyl ether (DME) to bolster India's long-term energy security.
Watch the full conversation here.