How Brazil, US, and EU tackled ethanol blends before India's E20 push

Business Standard

3 days ago

India's push to adopt E20 petrol, 20 per cent ethanol blended with petrol—, marks its entry into a global club moving toward cleaner automotive fuels. But India's experiment is not happening in isolation: countries like Brazil, the United States, and many European nations have already adopted this.
Since 2023, India has been introducing E20 petrol at select fuel stations, aiming for 80 per cent of the petrol market to operate on E20 by 2025. The government argues the move will both cut oil imports and lower pollution.
On July 24, Petroleum and Natural Gas Minister Hardeep Singh Puri said that blending ethanol with petrol has boosted India's energy security and delivered environmental benefits. While available data largely supports these assertions, concerns are being raised in other sectors.
Automobile makers have pointed to potential technical issues and reduced fuel efficiency, particularly with higher ethanol blends such as E20. Consumer advocacy groups have also expressed reservations about the possibility of higher fuel costs translating to fewer kilometres per litre.
Brazil: Early mover, mainstream success
• Brazil pioneered large-scale ethanol blending in the 1970s, responding to the global oil crisis. Backed by state price incentives, blending mandates, tax breaks, and communications campaigns, Brazil's government made ethanol both economically attractive and easy for drivers to understand.
• According to Bloomberg reports from 2023 and 2025, flex-fuel vehicles dominate the Brazilian market, constituting approximately 84.5 per cent of all vehicle sales as of 2025.
• While public acceptance remained high, reliance on sugarcane for ethanol brought mixed environmental results, including concerns about land-use and biodiversity.
United States: Broad adoption
• The US mainstreamed E10 (10 per cent ethanol) under its Renewable Fuel Standard from 2005, with corn as the primary ethanol source.
• E10, a blend of 10 per cent ethanol and 90 per cent gasoline, is widely available at most fuel stations across the country. Over 4,200 public stations in 43 states offer E85 or flex fuel, which contains between 51 per cent and 83 per cent ethanol, varying by region and season.
• By 2023, more than 3,000 stations across 31 states were selling E15. Many fuel stations also provide several ethanol blend options at a single location, typically using blender pumps.
Europe: Sustainability and caution over speed
• Europe's blend rollouts have focused more on lifecycle emissions and consumer protection.
• Countries like Austria and Belgium have adopted E10 fuel, while nations such as Germany, Finland, and France offer consumers the choice between E10 and E5 at fuel stations.
• Uptake has been slowed by worries about engine safety, strong consumer protection laws, and rigorous labelling. Even with regulatory backing, consumer scepticism and patchy pump infrastructure mean several countries still lag behind, and E5 fuel remains widespread.
Numbers game: Who is using what
• Brazil: Flex-fuel cars are over 85 per cent of new vehicle sales
• US: Over 95 per cent of petrol is E10; E15 present at only about 10 per cent of stations
• EU: E10 is standard in France, Germany, and the UK, but E5 remains common elsewhere
• India: Targets achieving 20 per cent ethanol blending (E20) in 80 per cent of the petrol market by 2025-26
What India can learn
India faces a critical transition -- older vehicles still dominate the market, and awareness about E20 is patchy, especially outside big cities. Some stations lack clear labels, raising concerns similar to those faced in the US about misfuelling and consumer confusion.
Here's what India can learn from
• Brazil: The importance of consumer-ready vehicles and visible pricing advantage.
• US: Risks related to labelling, engine compatibility, and industry opposition.
• EU: The need for sustainability criteria and a slow, phased rollout with robust consumer safeguards.
India started blending ethanol in the early 2000s with E5, steadily ramping up policy via the 2018 National Policy on Biofuels and the 2021 Ethanol Roadmap. It reached E10 ahead of schedule in 2022, and E20 is rolling out since 2023. The Bureau of Indian Standards and Ministry of Road Transport and Highways are updating technical rules for fuel, vehicles, and pumps.
As India prepares to make E20 the default grade by April 2025, learning from global experience will be vital for consumer trust, vehicle safety, and rural livelihood gains from a local bioethanol industry.