Ethanol is simple ethyl alcohol with the chemical formula C2H5OH. It is an organic alcohol compound also called drinking alcohol or grain alcohol. Ethanol is an explosive, slightly toxic, and colorless compound. Apart from alcoholic beverages, ethanol has a lot of uses in various aspects. That's why the market is expanding globally day by day.
Opportunities for the Production of Ethanol in India;
India is the world's second-largest producer of sugarcane, the primary raw material for fuel ethanol production. India will raise production of alternative fuel ethanol, according to Union Minister Nitin Gadkari, since people face issues as the price of petrol and diesel rises. The minister said at a virtual conference organised by BRICS Network University that automakers in Brazil, Canada, and the United States are developing flex-fuel engines that give customers the option of using 100% petrol or 100% bio-ethanol. The increase in petrol prices will prompt a further increase in Indian ethanol production (which is cost-effective), since people will be facing a lot of problems, and ethanol will also solve many of those problems.
PM Narendra Modi announced that the date for blending 20 per cent ethanol with petrol has been advanced five years to 2025 in order to reduce pollution and reduce dependence on imports. 10% ethanol blending in petrol by 2022, and 20% doping by 2030 are goals set by the government. The future of India as a leading producer of biofuels is bright. The potential of India (in terms of ethanol output) can be ten times what it is today," said Eduardo Schindler, CEO of 2thepoint Private Equity Investment. Due to these significant reasons, it is believed that there is a great opportunity for the production of ethanol in India and it is a profitable business opportunity.
GLOBAL ETHANOL INDUSTRY:
The worldwide ethanol market is expected to develop at a CAGR of 4.8 percent over the next five years. The increased use of the product as a biofuel is driving demand for the product. Another key aspect driving market expansion is the increased usage of alcoholic beverages. Both natural and petrochemical feedstocks can be used to make ethanol.
Natural sugars are fermented in the presence of yeast in the natural process. Because of the surge in shale gas output, ethylene production is expanding. As oil output declines and additional ethylene capacity comes online, the market is projected to become overstocked with ethylene, resulting in ethanol production stagnation. One of the primary market drivers is the use of ethanol as a biofuel.
The automotive industry has risen dramatically in recent years, posing numerous challenges in terms of air pollution control. To combat the problem of increased air pollution caused by automobiles, ethanol is combined with gasoline up to quantities of 10% and 15%. The use of ethanol gives significant benefits in terms of fuel economy, thermal efficiency, and cold start assistance throughout the winter season. In terms of the use of ethanol as a biofuel, the United States and Brazil are the world leaders. Alcoholic beverages containing ethanol, which were once considered a luxury item, are now gradually becoming a need in the majority of households around the world. The introduction of high-end products to the market is a primary driver of growth.