Author: Thasny Rahiman

Why “synergy” matters now

Clean technologies don’t win in silos  anymore. Solar plus batteries beats solar alone. EVs plus smart chargers beat EVs alone. Heat pumps plus rooftop PV slash bills more than either on its own. Over the next decade, these combinations—not single technologies—will drive the biggest gains in cost, reliability, and emissions. Here’s a simple tour of the most important pairings about Rise of Renewable Synergies, what the data says, and how markets are likely to evolve.

The backdrop: Demand up, costs down

• Electricity’s role is expanding. The IEA projects electricity’s share of final energy use rises from ~20% today to 26–29% by 2035, driven by EVs, heat pumps, and data centers. More “things” will run on electrons, not molecules.
  
• Renewables are scaling at record pace. In 2024 the world added ~585 GW of renewables, with solar ~452 GW and wind ~113 GW; renewables made up 92.5% of new power capacity.
  
• Storage and batteries keep getting cheaper. Global Li-ion pack prices fell to $115/kWh in 2024 (down 20% year-over-year), unlocking bigger storage projects across more countries.
• EV momentum continues. Electric car sales reached ~17 million in 2024, up 25% from 2023, with China leading.  

Below are trends that set the stage for powerful “renewable synergies.”

Solar + Storage: The new baseload for sunny hours

What’s changing: Solar gives the cheapest daytime electrons in much of the world. Pair it with batteries, and you shift solar into the evening peak, cut curtailment, and firm output.

Why it matters:

• Batteries now frequently clear grid tenders because capex is falling and project sizes are scaling into the multi-GWh range across the US, China, Australia, the UK, Chile, South Africa and more. 
• Every $/kWh drop increases the number of viable use-cases—from peak shaving to fast frequency response—making solar-plus-storage (S+S) a default design for new utility projects. Expect S+S to become the “standard” configuration in high-solar regions by the late 2020s. (Inference based on the cost and project pipeline trends.)
  

What to watch (2025–2035) About Rise of Renewable Synergies:

• Four- to eight-hour batteries are becoming commonplace in markets with evening peaks.
  
• Co-location rules that share grid interconnections, cutting soft costs.
  

Wind + Storage: Smoothing the gusts

What’s changing: Wind often peaks at night; batteries can soak up nighttime surpluses and support morning ramps.

Why it matters:

• In regions with strong wind (US plains, North Sea, parts of India and Latin America), pairing storage can cut balancing costs and help wind compete in capacity markets.
  
• Longer-duration storage (8–24h) and emerging chemistries will help manage multi-hour lulls, complementing short-duration lithium. (Forward-looking inference consistent with storage expansion data.)
  

Rooftop Solar + Heat Pumps: The home energy bundle

What’s changing: Heat pumps electrify heating and cooling; rooftop solar lowers the operating cost.

Why it matters:

• Even with a dip in European heat pump sales in 2024 due to cheaper gas and policy uncertainty, the long-term logic is intact: pairing PV with heat pumps shields households from price swings and cuts emissions. Expect a rebound as policies stabilize and building retrofits accelerate.

What to watch:

• Smarter controls that pre-heat or pre-cool when solar output is high.
  
• Utility tariffs that reward flexible heating loads.

EVs + FFVs: Cars as Clean Energy Allies

What’s changing: Vehicles are no longer just about mobility—they’re becoming central to the clean energy transition. EVs act as flexible batteries on wheels, while FFVs (Flex-Fuel Vehicles) provide a low-carbon option where electrification is slower to spread.

Why it matters:

• With ~17 million EVs sold in 2024, smart charging can shift demand to cheaper, cleaner hours.
  
• At the same time, FFVs running on 2G Ethanol blends (made from biomass) cut lifecycle emissions, reduce oil imports, and support rural economies through biofuel demand.
  
• Together, EVs and FFVs offer a dual-pathway to clean transport—one electrified, one biofuel-powered—ensuring broader adoption across diverse markets.
  

What to watch:

• V2G standards enabling EV fleets (buses, vans) to act as grid resources.
  
• Policy support for higher ethanol blending so FFVs can scale quickly.
  
• Workplace charging and ethanol fueling stations expand in parallel, giving drivers more clean choices.

Bioenergy + Electrification: Filling gaps you can’t easily electrify

What’s changing: Sustainable biofuels and bio-based feedstocks complement electrification in aviation, shipping, and heavy industry.

Why it matters:

• Where direct electrification is hard, biofuels, biogas, and e-fuels provide drop-in options while hydrogen infrastructure matures. Expect tighter sustainability rules, more waste- and residue-based supply, and blending mandates targeting aviation and marine sectors. (Generalized view consistent with IEA and IRENA transition pathways.)
  

Five Big Synergy Playbooks (2025–2035) 

Clean Firm Power: Biofuels + Renewables

• Solar and wind supply cheap power, while biofuel plants from Khaitan Bio Energy ensure round-the-clock reliability.
  
• Result: Stable, low-cost clean energy even when sun and wind drop.
  

Community Energy Hubs

• Rooftop solar and batteries keep homes resilient, while local biofuel supply chains add backup and reduce dependence on fossil fuels.
  
• Result: Stronger rural economies and reliable community power.
  

Green Mobility with Biofuels + EVs

• EV fleets charge on renewables, but bioethanol and fuel long-haul transport and hard-to-electrify vehicles.
  
• Result: Cleaner, cheaper mobility across both short and long distances.
  

Industrial Decarbonization

• Factories use a mix of solar/wind PPAs and biofuels for heat and power, with hydrogen emerging later.
  
• Result: Industries cut emissions faster while securing affordable energy.
  

Buildings of the Future

• Homes run on PV + heat pumps, with bio-based fuels covering peak or backup needs.
  
• Result: Lower bills, comfort, and resilience for households.

Risks and reality checks

• Policy whiplash: Incentives and rules can change, temporarily slowing adoption (as seen with EU heat pumps in 2024). Long-term economics still favor electrification + renewables, but stable frameworks matter. 
• Grid bottlenecks: Transmission delays can strand cheap projects. Expect a greater push for grid-enhancing technologies and streamlined interconnection.
• Widespread adoption for 2G Ethanol: Currently most of the ethanol production is happening from Maize, sugarcane and rice, which directly affects food availability for the population. Adopting 2G Ethanol made using biomass not only does not eat into the food chain but also helps curb pollution by utilising rice straw to make ethanol which otherwise is burnt in open fields, leading to harmful fumes. Government needs to support policies for mass adoption of such technologies.

What “good” looks like by 2035

• Clean additions dominate: Renewable capacity keeps growing, but with a stronger mix—solar, wind, storage, and advanced biofuel power plants. Khaitan Bio Energy helps ensure that even agricultural residues and waste streams are turned into clean power, reducing both emissions and stubble burning.
  
• Round-the-clock portfolios: Utilities and corporations design energy packages that don’t just rely on the sun and wind. Biofuel-based power plants provide firm, dispatchable energy, complementing solar + wind + batteries. This ensures industries, hospitals, and AI-driven data centers get clean electricity even when the grid is under stress.
  
• Electrified living: EVs, rooftop PVs, heat pumps, and household batteries are standard, but the backbone of reliability comes from a steady supply of green fuels. By integrating biofuels into regional grids, companies like Khaitan BioEnergy make electrified lifestyles more affordable and stable.
  
• Early hydrogen and biofuel wins: Alongside green hydrogen pilots, bioethanol plants scale up to commercial levels. Refineries, fertilizers, and steel plants begin blending and switching to these green fuels, supported by Khaitan Bio Energy’s investments in 2G ethanol from crop residues. This not only cuts industrial emissions but also builds rural economies.

Bottom line About Rise of Renewable Synergies

The next decade is about connecting technologies: pairing renewables with storage, vehicles with grids, buildings with smart controls, and industry with green molecules. The economics are moving fast in favor of these combinations: record renewable additions, falling battery costs, strong EV sales, and surging corporate demand are all pointing the same way. If policy can keep pace—especially on grids and permitting Renewable Synergies— will do the heavy lifting for a cheaper, cleaner, and more reliable energy system by 2035. 

India’s transport future is changing fast. In the last two years the country has moved from pilot projects and local experiments to nation-scale action on ethanol blending and alternative fuels. That shift is now meeting a second, powerful push from vehicle regulation: the next version of India’s Corporate Average Fuel Efficiency rules (often called CAFE-3) is expected to recognise flex-fuel engines alongside electric vehicles. That regulatory change makes it much more attractive for automakers to build cars that can run safely on petrol mixed with higher shares of ethanol . And it could reshape vehicle design, fuel markets, and farming economics across the country. 

Why flex fuel matters right now

Ethanol blending has mushroomed into a national priority. The government’s Ethanol Blending with Petrol (EBP) programme, backed by policy and financial incentives. This pushed the blend target to 20% (E20) well ahead of schedule. By early 2025 India was already reporting blend levels close to or above 18–19% and aiming to hit or exceed 20% for the ethanol supply year. That means more pumps, more logistics, and more pressure on vehicle makers . This is to ensure cars can run on E20 without problems. A car that is “flex-fuel” can operate on a range of blends. From traditional petrol up to much higher ethanol mixes — allowing drivers to switch fuels without engine damage or performance loss.

What CAFE-3 is likely to change

CAFE rules set fleet-average emissions (or fuel efficiency) targets for manufacturers. Past iterations in India leaned heavily toward rewarding electric vehicles. The upcoming CAFE-3 is being talked about as more balanced. Not only will it keep pushing EVs, but it will also offer regulatory benefits to flex-fuel cars by allowing a “biogenic derogation” or other favourable accounting for emissions when biofuels are used. In plain terms, that lowers the effective emissions score for vehicles that run on biofuel blends. Thus making it cheaper for manufacturers to meet fleet targets if they add flex-fuel models. Automotive companies notice incentives like this quickly; when regulators reward a technology, product pipelines and investment plans shift fast.

How automakers are responding

Automakers in India are already moving. Major players — including legacy OEMs and newer manufacturers. Also they have stepped up development of flex-fuel powertrains, testing materials, fuel systems, and software calibration to cope with E20 and higher blends. Some are exploring flex-fuel versions of popular models. While others are investing in research partnerships and supplier upgrades to ensure parts resist ethanol’s different chemical properties. The carrot of CAFE-3 makes this work commercially sensible. A flex-fuel model could earn a manufacturer regulatory credits that count toward fleet compliance in 2027 and beyond. Reports show design pipelines and test programs accelerating in the past few months following official signals from transport ministry leaders.

Supply side: where will Ethanol will come from

Meeting higher blending targets depends on feedstock and capacity. India has broadened feedstocks beyond just sugarcane molasses to include B-heavy molasses, damaged or surplus rice, corn, and other grains when needed. For 2024–25 the USDA and other official tracking estimated India’s blending rate around 19.3 percent and noted that the government authorised large quantities of Food Corporation of India rice for ethanol to cover shortfalls from sugarcane. Thus diverting surplus foodgrain into fuel is a major, sometimes controversial move . But it shows how policy tools and market signals are being used to expand ethanol availability quickly. So practical outcome is that more ethanol will be available at more pumps. And so consumers can choose E20 without hunting for rare outlets. 

Benefits

For drivers –

• More choice at the fuel pump.
  
• Cleaner combustion than pure petrol.
  

Environmental benefits –

• Ethanol burns cleaner, cutting some pollutants.
  
• Modest reduction in carbon intensity if produced sustainably.
  

For cities –

• Lower tailpipe emissions of carbon monoxide.
  
• Fewer particulate precursors → better air quality.
  

        For the climate –

• Ethanol from residues or sustainable crops lowers lifecycle greenhouse gases.
  
• Second-generation (2G) ethanol from agricultural waste avoids using food crops.
  

Why it’s supported –

• Climate benefits attract funding from government and global partners.
  
• Support for second-gen projects and biofuel production clusters.
  

Concerns and trade-offs to watch

The shift is not risk-free. Using foodgrains for fuel can raise food security and price questions if not carefully managed. Ethanol production facilities have environmental impacts also. Distilleries can be pollution-intensive if wastewater and emissions aren’t controlled. Also some experts caution the EBP programme’s benefits depend on good feedstock choices and pollution controls. Similarly technical concerns also exist: older vehicles not designed for E20 could see diminished seals or fuel system issues unless manufacturers certify compatibility or consumers switch to flex-fuel models. That is why policy signals from the transport ministry and assurances from the petroleum ministry matters. Regulators must coordinate to ensure fuel standards, vehicle compatibility, and consumer information are aligned.

What CAFE-3 incentives mean for rural economies

• If flex-fuel cars become more common, ethanol demand will increase, directly benefiting farmers.
  
• Surplus rice can be used for ethanol production, creating new markets for farmers.
  
• Also sugar mills diverting sugarcane to ethanol will receive more payments, supporting the sugar industry.
  
• Incentives for growing energy crops could improve rural incomes across many regions.
  
• The government already offers higher prices for corn-based ethanol to encourage production.
  
• Viability Gap Funding is available for 2G ethanol projects that turn agricultural residues into fuel.
  
• This could create new value chains, such as:
  
  • Small depots collecting crop stubble and residues
    
  • Local distilleries processing ethanol
    
  • New logistics and transport jobs
    
• If managed well, farmers who currently burn residues could earn extra income instead.
  
• Social benefits will depend on transparent supply chains and ensuring food crops are not replaced by fuel crops.
  

What consumers should know today

Check your vehicle’s compatibility. Many new cars produced after 2023 are being built with E20 in mind. But older models or imports might not be compatible. Also follow the official guidance from manufacturers and fuel stations. The government has also clarified concerns that E20 will dramatically kill fuel efficiency or damage most modern engines — official statements and testing suggest impacts are manageable when standards are followed. Practical consumer steps include monitoring the label at the pump, checking manufacturer advice, and being alert to announcements about flex-fuel model launches from car makers.

                                                A quick way to see the scale of change is to think of the fuel pool as a pie. Projections from official sources put ethanol’s share of the petrol pool around 19.3% for 2025 — roughly one slice in five is now ethanol by volume. That is a huge shift compared with a few years ago when ethanol’s share was in single digits. Industry moves and likely timelines.

Also expect to see more announcements from vehicle makers about flex-fuel models between now and 2027. Pilot runs, certification tests, and the first small-series launches may happen as early as 2025–26, followed by wider rollouts if CAFE-3 final rules arrive as signalled for April 2027. At the same time, expect infrastructure work: more retail outlets stocking E20, upgrades in storage tanks and dispenser materials, and supply chain tweaks to avoid cross-contamination with unblended petrol. Investors in automotive components, pumps, and ethanol logistics will watch policy timelines closely because regulatory credits are what will turn R&D investments into near-term profit. 

Global comparisons and lessons

Brazil is the classic example of a country that built a flex-fuel ecosystem and reaped both energy security and rural benefits. India is not copying Brazil exactly, but it is learning from that model while adding its own priorities — a heavy focus on second-generation feedstocks, careful targeting of surplus grains, and international partnerships to import best practices. The global takeaway is simple: policy clarity plus predictable incentives unlock private investment. If CAFE-3 gives clear, long-term recognition to flex fuels, India could accelerate a transition that balances EV growth with biofuel options in a complementary way. 

What success looks like

Success would be a transport sector where consumers enjoy choice, emissions fall, farmers gain new markets for residues and surplus crops, and distilleries operate cleanly and transparently. So it would mean refurbished supply chains that don’t harm food availability, strict pollution controls for ethanol plants, and vehicle fleets where flex-fuel and electric options together help meet climate and air-quality goals. Therefore achieving this requires careful regulation, investment in cleaner ethanol routes (like 2G Ethanol), and strong monitoring to ensure public goods — food security and clean air.

Final thought

CAFE-3 is more than a technical update on paper. If it formally recognises the climate and fleet benefits of flex-fuel vehicles, that will change commercial logic for automakers and fuel suppliers. The result could be a genuine speed-up in ethanol-compatible cars on Indian roads by 2027, better use of agricultural residues, and an added lever to cut emissions from transport. The details will matter — the mix of feedstocks, the strength of pollution controls, and how incentives are structured — but the direction is clear: flex fuel is stepping onto the main stage alongside electric vehicles, and that could be one of the most practical ways India balances climate goals with energy security and rural livelihoods

Introduction

As climate concerns become more urgent and fossil fuel supplies increasingly uncertain, 2025 marks a critical turning point for the transportation sector. In this green transition, three sustainable alternatives—biofuels, electric vehicles (EVs), and green hydrogen—are leading the way toward cleaner, more efficient mobility. Together, they promise to reduce carbon emissions, support energy independence, and reshape how people and goods move across cities, countries, and continents.

This blog explores how these three technologies are shaping India’s and the world’s mobility landscape in 2025, the challenges they face, and the crucial role of policy, innovation, and industry players like Khaitan Bio Energy in driving change.

Why Green Mobility Matters Now More Than Ever

Transportation accounts for nearly 25% of global CO₂ emissions, with road transport being the biggest contributor. In India, the sector is not just a source of pollution but also a major drain on imported fossil fuels. As cities choke on smog and fuel prices fluctuate, governments, businesses, and citizens are realizing the need to transition to greener options.

Key Goals of Green Mobility:

• Reduce dependence on imported oil
  
• Cut greenhouse gas and particulate emissions
  
• Improve urban air quality
  
• Create local jobs in clean tech sectors
  
• Align with international climate targets (like Net Zero by 2070 for India)
  

Green Mobility – A Bridge Toward Cleaner Transport

Biofuels, particularly ethanol and biodiesel, are renewable fuels made from organic materials like sugarcane, maize, used cooking oil, and agricultural waste. In India, the Ethanol Blending Programme (EBP) aims to blend 20% ethanol into petrol by 2025–26.

Benefits of Biofuels:

• Can be used in existing internal combustion engine vehicles (ICEVs)
  
• Lower lifecycle emissions compared to petrol and diesel
  
• Stimulate rural economy by utilizing agricultural waste
  
• Reduce stubble burning by using crop residues like rice straw
  

Types of Biofuels:

Type	Source	Use Case
1G Ethanol	Sugarcane, corn	Petrol blending
2G Ethanol	Rice straw, agri waste	Cleaner, non-food-based fuel
Biodiesel	Used cooking oil, animal fats	Diesel vehicle alternative
Bio-CNG	Organic municipal/agri waste	Public transport, logistics

Real-world Impact:

By February 2025, India has reached nearly 17.98% ethanol blending, and new 2G ethanol plants are being commissioned across the country.

Khaitan Bio Energy

Khaitan Bio Energy is among the pioneers producing 2G ethanol from rice straw, using zero-liquid discharge (ZLD) technology and valorizing byproducts like silica and lignin. Their work directly contributes to reducing stubble burning and achieving India’s blending goals—while empowering farmers with new income streams.

Electric Vehicles (EVs) – Quiet, Efficient, and Rapidly Scaling

EVs have gained tremendous momentum globally and in India. With government subsidies, improved infrastructure, and rising consumer interest, EVs are transitioning from niche to mainstream.

Advantages of EVs:

• Zero tailpipe emissions
  
• Lower maintenance and running costs
  
• Growing charging infrastructure
  
• Quiet and smooth driving experience
  

Challenges:

• High upfront cost (though decreasing)
  
• Battery range anxiety
  
• Charging station availability in rural areas
  
• Recycling and sourcing of rare earth minerals
  

Government Support in 2025:

• FAME II Scheme continues to offer incentives for two-, three-, and four-wheelers.
  
• State governments offer tax exemptions, registration fee waivers, and subsidies.
  
• Many cities are shifting public buses and taxis to electric fleets.
  

Trends in 2025:

• Electric two-wheelers and rickshaws dominate the urban mobility space.
  
• Battery-as-a-service and swapping models are expanding in metro areas.
  
• Companies like Tata Motors, Ola Electric, Ather, and MG have launched newer, more affordable EV models.
  

Hydrogen – The Future Fuel?

Hydrogen, especially green hydrogen produced using renewable electricity, is gaining interest for hard-to-decarbonize sectors like heavy-duty transport, shipping, and aviation.

Why Hydrogen?

• High energy density and long driving range
  
• Can fuel large vehicles like buses, trucks, and trains
  
• Emission-free when used in fuel cells (only water as a byproduct)
  

India’s Hydrogen Push:

In 2023, the government launched the National Green Hydrogen Mission, aiming to make India a global hub for hydrogen production and exports. By 2025:

• Pilot projects are running hydrogen buses in cities like Delhi and Pune.
  
• Green hydrogen is being used in some industrial and rail transport applications.
  
• Investments are flowing into electrolyzer manufacturing and hydrogen infrastructure.
  

Challenges Ahead:

• High production and storage cost
  
• Lack of fueling infrastructure
  
• Competition with other clean energy sources
  

 Comparing the Three Pillars of Green Mobility

Feature	Biofuels	EVs	Hydrogen
Fuel Source	Organic materials/agri waste	Electricity (ideally renewable)	Electrolyzed water (green)
Emissions	Low lifecycle emissions	Zero tailpipe	Zero tailpipe
Infrastructure	Existing ICE vehicles usable	Requires charging network	Needs hydrogen refueling
Scalability in 2025	High (with support)	Growing fast in cities	Early-stage (pilots ongoing)
Ideal For	Rural mobility, farming, logistics, Daily road transportation	Urban transport, personal use	Heavy vehicles, rail, industry

The Role of Policy and Innovation

The future of green mobility doesn’t rely on a single solution. A multi-tech approach is key—using the best fuel or vehicle type for the right application.

Governments must continue to:

• Provide incentives for clean vehicle adoption
  
• Invest in renewable energy and infrastructure
  
• Encourage R&D in storage, fuel cells, and recycling
  
• Support startups and biofuel plants like Khaitan Bio Energy
  

Private sector innovation, from battery management to biomass processing, is also essential. Collaboration between EV makers, fuel producers, and smart grid developers can accelerate the transition.

What Can Individuals and Businesses Do?

For Individuals:

• Choose an EV or FFV (flex-fuel vehicle) for your next purchase.
  
• Support brands that prioritize sustainability.
  
• Spread awareness and demand clean transport options.
  

For Businesses:

• Electrify your vehicle fleet where feasible.
  
• Partner with 2G biofuel producers for low-emission logistics.
  
• Use renewable energy in warehousing and transport hubs.
  

Conclusion: A United Path Toward Cleaner Roads

The transportation sector is undergoing a massive transformation in 2025. While electric vehicles are capturing urban markets and green hydrogen is shaping up for the long haul, biofuels like those produced by Khaitan Bio Energy are proving essential for bridging the gap—especially in agriculture and rural India.

Each solution has a unique role to play. Together, they form the foundation of green mobility—a path that ensures cleaner air, economic growth, and energy security for the generations to come.

India’s green future is not a dream—it’s in motion. The road ahead is electric, bio-powered, and hydrogen-fueled.

India’s drive to blend 20 percent ethanol into petrol by 2025–26 and thereby achieving green future represents a critical step toward reducing oil imports, cutting greenhouse gas emissions, and supporting rural incomes. Initially, sugarcane and surplus rice were the primary feedstocks for ethanol production—so-called first-generation (1G) biofuels. However, mounting evidence shows that reliance on these food crops is neither sustainable nor scalable. From falling sugarcane yields and water scarcity to concerns over diverting staple grains, it’s clear that India must look beyond sugar and rice. Second-generation (2G) ethanol—made from agricultural residues like rice straw—offers a far more sustainable path. Companies such as Khaitan Bio Energy are leading this transition, demonstrating how innovative technologies can convert farm waste into clean fuel while protecting food security and the environment.

Why Sugar-Based Ethanol Is Losing Steam

For over a decade, India’s ethanol blending program for green future depended heavily on sugarcane, using both molasses and cane juice. Yet recent trends have exposed serious constraints:

• Declining Yields: Poor monsoon rains, disease outbreaks (e.g., red rot), and soil exhaustion have cut sugarcane output from 315.4 lakh tonnes in 2023–24 to 257.4 lakh tonnes in 2024–25.
  
• Water Intensity: Producing one litre of sugarcane ethanol can require up to 2,860 litres of water—unsustainable in water-stressed regions like Maharashtra and Uttar Pradesh.
  
• Price Sensitivity: Global sugar price fluctuations directly affect ethanol economics. When sugar prices rise, mills divert less cane to ethanol, threatening blending targets.
  
• Geographical Limits: Sugarcane cultivation and associated distilleries are concentrated in a few states, creating transport bottlenecks and uneven blending infrastructure across India.
  

Together, these factors mean sugar-based ethanol alone cannot meet India’s growing fuel-blending targets without jeopardizing water resources, crop incomes, and the reliability of ethanol supply.

The Rice Diversion Dilemma

To diversify, the government approved the use of Food Corporation of India (FCI) rice for ethanol. In May 2025, an additional 2.8 million tonnes of FCI rice were sanctioned—bringing total rice allocation to 5.2 million tonnes for the 2024–25 ethanol supply year Down To Earth. While this move helped boost ethanol output—enough to produce roughly 2.45 billion litres—diverting rice poses serious risks:

Food Security

Rice is a staple food for a large part of India’s population. Diverting millions of tonnes of it toward ethanol production could threaten food availability, especially in years when harvests are lower than usual. This diversion could lead to price hikes, making rice less affordable for many, and increasing the risk of food insecurity in vulnerable communities.

Supply Chain Strain

Increased demand for rice to produce ethanol puts pressure on India’s well-established food procurement and distribution systems. These systems are vital for delivering subsidized food to millions of people. Using large quantities of rice for fuel could disrupt these networks, causing logistical bottlenecks and reducing the efficiency of food delivery mechanisms.

Policy Backlash

The use of food grains like rice for fuel has triggered concern among both the public and policymakers. It raises ethical and strategic questions about prioritizing fuel over food. This ongoing debate highlights the urgent need for more sustainable and non-food-based alternatives, such as second-generation ethanol from agricultural waste like rice straw for a green future.

The rice-for-fuel strategy is a stopgap at best. Long-term energy security demands feedstocks that spare the country’s precious food reserves.

Why 2G Ethanol from Rice Straw Makes Sense

Second-generation (2G) biofuels use non-food biomass—lignocellulosic residues such as rice straw, wheat straw, corn stover, and forestry waste. Rice straw stands out for several reasons:

• Abundant Raw Material: India generates an estimated 168 million tonnes of rice straw annually, with 39–47 million tonnes available as surplus Down To Earth.
  
• Stubble Burning Mitigation: Farmers routinely burn rice straw to clear fields, causing severe air pollution. Converting straw to ethanol reduces this practice and its health hazards.
  
• No Food Competition: Rice straw is a waste product, so its use for fuel does not compromise food availability.
  
• Rural Livelihoods: Purchasing straw for ethanol gives paddy farmers an extra income stream, boosting rural economies.
  

By tapping into rice straw, India can scale ethanol production without the drawbacks of sugarcane or rice grain feedstocks.

 Comparing Ethanol Feedstocks

Feedstock	Food vs. Fuel	Water Use	Annual Availability	Environmental Impact
Sugarcane Molasses	Low food impact	Very high	32 lakh tonnes ethanol	High water stress; fertilizer runoff; limited to certain states
FCI Rice Grain	High food impact	Moderate	5.2 million tonnes rice	Diverts staple grain; risk of food shortages
Rice Straw (2G)	No food impact	Low	~40 million tonnes	Reduces stubble burning; uses agricultural waste; low water footprint

Benefits and Challenges of 2G Ethanol

Benefits:

• Sustainability: Utilizes waste; avoids food-fuel conflicts.
  
• Emission Reductions: Cuts open-field burning and greenhouse gases.
  
• Economic Uplift: Creates new markets for farm residues; spurs bio-refinery jobs.
  

Challenges:

• Technology Complexity: Lignocellulosic biomass requires advanced pre-treatment and enzymes to release fermentable sugars.
  
• Higher Capital Costs: 2G bio-refineries need greater upfront investment than 1G plants.
  
• Logistics: Collecting, transporting, and storing bulky straw feedstocks demands robust supply chains.
  

The chart shows a balanced view of key advantages like environmental benefits, rural income support, and emissions reduction, along with notable challenges such as high setup cost, technological complexity, and supply chain issues.

Overcoming these issues requires targeted policy support, technology partnerships, and financing models that de-risk investment in 2G infrastructure.

 Khaitan Bio Energy’s Game-Changing Role

Khaitan Bio Energy has emerged as a pioneer in India’s 2G biofuel landscape focussing green future. It has patented technology to produce 2G Ethanol using biomass with zero discharge from the  biorefinery. The main features of the technology are:

• Integrated, Zero-Liquid-Discharge (ZLD) Design: Efficient water recycling and minimal effluent generation.
  
• Advanced Pretreatment: Energy-efficient reactors and enzymatic hydrolysis processes maximize sugar yield from tough rice straw fibers.
  
• Byproduct Valorization: Extracted silica and lignin are used for steam generation, enhancing plant economics and sustainability.
  
• Local Farmer Engagement: Contracts with paddy growers ensure a reliable straw supply, boosting rural incomes and reducing stubble burning.
  

By combining cutting-edge technology with circular-economy principles, Khaitan Bio Energy demonstrates how 2G ethanol can be both environmentally and commercially viable.

Policy and Investment Imperatives

To scale 2G ethanol from rice straw nationally, coordinated action is needed:

• Incentives for Feedstock Supply: Minimum purchase prices for straw and grants for collection infrastructure.
  
• Capital Subsidies: Loan guarantees and viability gap funding for 2G plant developers.
  
• Research & Development Support: Grants for process optimization and enzyme cost reduction.
  
• Blending Mandate Flexibility: Progressive blending targets that recognize the longer ramp-up for 2G capacity.
  

Such measures will encourage more private and public players to enter the 2G ethanol space, accelerating India’s green-fuel transition.

The Road Ahead

India’s ethanol blending journey must evolve from its 1G origins to embrace multi-feedstock strategies centered on sustainability. Rice straw–based 2G ethanol addresses the twin challenges of energy security and agricultural pollution. With innovators like Khaitan Bio Energy leading the charge—and with the right policy ecosystem—India can meet and exceed its 20 percent blending goal without compromising food supplies or natural resources.

The shift to 2G ethanol is not just a technological upgrade; it’s a systems change that empowers farmers, protects public health, and strengthens India’s energy sovereignty. By leveraging abundant agricultural residues, the country can chart a truly green and resilient energy future—one straw at a time.

Introduction

India has set an ambitious goal: blending 20% ethanol into petrol by 2025–26. This move aims to reduce the country’s dependence on imported oil and lower greenhouse gas emissions. However, the path to achieve Moving Beyond Sugar and Rice by Rethinking Ethanol target is fraught with challenges, especially concerning the sources of ethanol production. Traditionally, ethanol in India has been produced from sugarcane and surplus food grains like rice. While these sources have served well initially, they are now presenting significant constraints, prompting a shift towards more sustainable alternatives like second-generation (2G) ethanol derived from rice straw.

The Limitations of Sugar-Based Ethanol: Why India Needs to Look Beyond Sugar

India is aiming to blend 20% ethanol into petrol by 2025–26 to reduce oil imports and fight pollution. For the past few years, most of India’s ethanol has come from sugarcane, especially molasses and sugarcane juice. While this helped launch India’s ethanol program, it’s now clear that sugar alone can’t take us all the way. There are serious problems with relying too much on sugarcane to make ethanol.

Let’s take a closer look at the limitations—and why it’s time to explore better, cleaner alternatives.

1. Sugarcane Production Is Falling

Sugarcane farming depends a lot on water, healthy soil, and good weather. Recently, sugar output has been falling because of:

• A disease called red rot damages crops.
  
• Less rainfall and dry weather in key sugarcane regions.
  
• Lower sugar recovery rates, meaning less sugar is extracted from the same crop.
  

In the 2024–25 season, India’s sugar production dropped from 315.4 to 257.4 lakh metric tons. This directly affects ethanol production, as less sugar means less ethanol.

2. Too Much Water Is Needed

Sugarcane needs a lot of water. Producing just one litre of ethanol from sugarcane can take nearly 2,860 litres of water. In areas where water is already scarce, this puts a big strain on farmers and the environment.

If we continue to use sugarcane for ethanol, it may worsen water shortages, especially in places like Maharashtra and Uttar Pradesh.

3. Using Sugar for Fuel Affects Food Prices

Sugar is not just for making ethanol—it’s a food product. If more sugarcane is used to make fuel, there’s less sugar available for people to eat. This can cause sugar prices to rise.

Also, if ethanol prices go up or sugar production falls, the fuel supply is affected. This creates a risky situation where food and fuel are competing for the same crop.

4. Limited to Few States

Sugarcane is grown mostly in certain states. Ethanol plants are usually located near these sugarcane farms. This means:

• Ethanol has to be transported long distances, which costs more.
  
• Some states don’t have the right infrastructure to blend ethanol into petrol.
  

So, relying only on sugar-based ethanol doesn’t support nationwide fuel blending equally.

5. Climate Risks

Sugarcane farming is vulnerable to climate change. Unpredictable rains, extreme heat, and crop diseases make it hard to grow sugarcane consistently. This means ethanol supply from sugar is unstable and risky for the future.

The Risks of Diverting Rice for Ethanol

In an attempt to diversify ethanol sources, the government approved the use of surplus rice from the Food Corporation of India (FCI) for ethanol production. While this move aims to utilize excess stock, it raises several concerns:

• Food Security Threats: Diverting rice, a staple food for a significant portion of the population, towards ethanol production can lead to food shortages and increased prices, especially during years of poor harvests.
  
• Environmental Concerns: Rice cultivation is water-intensive. Increasing its production for ethanol purposes can strain water resources, exacerbating environmental issues.
  
• Policy Implications: The decision to use food grains for fuel has sparked debates about the balance between energy needs and food security, emphasizing the need for alternative solutions.

Embracing 2G Ethanol from Rice Straw: A Sustainable Alternative

Given the challenges associated with sugarcane and rice, attention is turning towards second-generation (2G) ethanol produced from agricultural residues like rice straw. This approach offers multiple benefits:

• Abundant Raw Material: India produces approximately 168 million tons of rice straw annually, with about 39 to 47 million tons available as surplus. Utilizing this waste not only provides a sustainable feedstock for ethanol but also addresses the issue of stubble burning, which contributes to air pollution.
  
• Environmental Benefits: Converting rice straw into ethanol reduces greenhouse gas emissions and mitigates the environmental hazards associated with stubble burning.
  
• Economic Opportunities: This approach can provide farmers with an additional source of income by selling their agricultural waste, promoting rural development.
  

Khaitan Bio Energy: Leading the 2G Ethanol Revolution

Khaitan Bio Energy is at the forefront of this sustainable shift. The company has patented technology to produce 2G ethanol using rice straw, demonstrating high efficiency and lower costs due to production of additional products namely, Silica and Gypsum. Their pilot plant has already showcased an end-to-end process with zero liquid discharge, utilizing advanced technologies for sugar treatment, dewatering, and recycling. Prioritising a sustainable and green future is the need of the hour and Khaitan Bio Energy is committed to achieving that goal through its innovations.

Conclusion: Charting a Sustainable Path Forward

India’s ethanol blending targets are commendable, aiming to enhance energy security and reduce environmental impact. However, the current reliance on sugarcane and rice poses significant challenges, including food security risks and environmental concerns. Embracing 2G ethanol production from rice straw offers a viable and sustainable alternative, addressing these issues while promoting rural development and environmental conservation.

Khaitan Bio Energy is showing how new and smart solutions can help India reach its clean energy goals. By turning farm waste into fuel, the company is helping the country move toward a greener and safer energy future—one that supports both the needs of people and the health of the planet.