Ethanol - are benefits worth the sacrifice?

In the order of Ethonol - EV - Ultimately Green Hydrogen

For some reason, the Indian political fraternity is putting a lot of emphasis on Ethanol just to tide over the high fuel cost with a myopic view.

Actually, we have compromised on the below.

  • 41% of total Indian labor is employed in the agricultural sector but is contributing only towards 20.19% of GDP (2021 data) which says the amount of resources we are wasting in the process (human, land, water, energy)
    -Ethanol production consumes more water and land resources than any other crop (sugarcane, beetroot etc.,)
    -Surge in demand for ethanol diverts the farmers towards more cash crops rather improving efficiencies on the staple food which will feed the large masses.

The biomass based ethanol production should be limited only to waste energy generation and not from fresh crops.

The government should rather put its energy towards creating a conducive environment to explore hydrogen and natural gas as preferred alternate options.

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Doesn’t agricultural sector take up large part of the pie in other large nations too?

Not the world’s first. See below.

Yes, of course. But the point here is

  1. Agriculture productivity is already low in the country compared to global peers (due to small land bank which gets divided to the successive generations and not tenable for mechanized farming)
  2. Why to waste scare resources to produce something just to generate ethanol, while there are alternate options available.

I grew up in an agricultural family but we eventually gave up farming since we could not make any meaningful money out of it

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Ethanol did have a great start in the year 2021. Infact, Ethanol prices and margins are down from record highs set in November, so they remain extremely profitable.

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