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INDUSTRY FOCUS
#ETHANOL SUPPLY

Stainless steel critical for Ethanol

blended motor fuel in India

Stainless steel is critical for augmenting Ethanol supply chain to meet Government’s plan of blending 20%
Ethanol with motor fuel

he Government of India has with petrol is highly cost effective.
announced the National Policy The differential price policy for ethanol
Ton Biofuels, under which ethanol blended petrol announced by Finance
blending of petrol has already reached Minister in the Budget, making it
10%, and is planned to go up to 20% cheaper by Rs. 2/Litre, will further
by 2025. Blending locally produced improve its economics.
ethanol with petrol will help India However, oil marketing companies
strengthen its energy security. It will can face challenges in terms of
enable local enterprises and farmers additional storage tanks for ethanol
to participate in the energy economy at refineries/terminals/depots and
and reduce vehicular emissions. This need for ethanol compliant dispensing
national goal can be met by augmenting units. Thus, the right casing material
supply chain for blending ethanol, needs to be considered for its safe
where stainless steel has a significant storage, supply and transportation.
role. [2]. In addition, it is crucial to note that
According to the Niti Ayog report ethanol cannot be stored in an average
[1] ‘Roadmap for Ethanol Blending container because it causes corrosion.
in India by 2020-25’ released in Although 100% pure ethanol is not
June 2021, phased rollout of 20% corrosive to most metals, its impurities
of ethanol blending by 2025 is very such as oxygen that cause high level of KARAN PAHUJA
much possible. The report says “Most corrosivity. Some of the contaminants President, Indian Stainless Steel
of the petroleum products are used in like water, organic acids and chlorides Development Association (ISSDA)
transportation. Hence, a successful can cause high level of corrosion in
E20 program can save the country US ordinary steels and disrupt operations steel is easy to maintain which reduces
$4 billion per annum, i.e., Rs. 30,000 of ethanol supply chain. There are two costs implied with storage: no paint or
cr.” Besides, immense benefits can methods that can be used to store other coatings on internal or external
accrue to the country in terms of energy ethanol: Removing any oxygen content surfaces need to be maintained,
security, lower carbon emissions, better and other impurities in the ethanol surfaces remain smooth due to non-
air quality, self-reliance, use of damaged sample, which is an expensive process corrosion, has a longer life and allows
food grains, increasing farmers’ income, [3], or storing it in a non-corrosive for easier cleaning and disinfection
employment generation, and greater material which is more cost-effective. and lower pumping costs. Therefore,
investment opportunities, According to Stainless steel is a corrosion resistant stainless steel is the material of choice
Niti Aayog, initially, pan-India ethanol material which makes it the ideal choice in Ethanol production and distribution
production will be raised from the for Ethanol production and distribution systems worldwide
current ~700 crore litres to 1500 crore systems worldwide. With stainless Secondly, ethanol is a highly
litres to make 20% target feasible. steel, pipes can often be made with a flammable material and stainless steel
Ethanol’s price is around Rs. 50-60 lighter wall thickness which makes it is fire-resistant. Tanks containing
per litre and therefore, its blending easier to distribute. In addition, stainless ethanol are required to be fire resistant,

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