Brazil’s Proálcool Programme
Context: The West Asia conflict has disrupted global oil supplies, highlighting India’s energy dependence and reviving interest in ethanol-based solutions like Brazil’s Proálcool model.
About Brazil’s Proálcool Programme:
What it is?
- A national biofuel programme launched by Brazil in 1975 to promote ethanol as an alternative to petrol, especially after global oil shocks.
Aim: To reduce dependence on imported crude oil and enhance energy security through large-scale adoption of ethanol-based fuels.
Key Features:
- Mandatory Ethanol Blending: Petrol (Gasoline C) mandated to contain ethanol (initially ~11%, later increased to ~30%), ensuring steady demand for biofuels.
- Flex-Fuel Vehicle Ecosystem: Introduction of vehicles capable of running on both petrol-ethanol blends and 100% ethanol (E100) using sensor-based technology.
- Dual Fuel Infrastructure: Fuel stations equipped with separate pumps for blended petrol and pure ethanol, allowing consumer choice based on price.
Lessons for India:
- Higher Blending Targets (E30–E100): India can move beyond E20 to higher blends, reducing import dependence and improving energy resilience.
- Promote Flex-Fuel Vehicles: Policy push for manufacturing flex-fuel engines and retrofitting existing vehicles to handle higher ethanol blends.
- Integrated Policy & Tax Reform: Bringing ethanol-blended fuels under a uniform GST regime can improve pricing efficiency and adoption.