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Ethanol ATMs Coming Soon: The Biofuel Story Is Racing Ahead of E20

Policymakers are seeking new demand for more than 7 billion litres of unused capacity as ethanol moves into cooking fuel, aviation and exports.

  • India's Ministry of Petroleum and Natural Gas is developing a policy framework to introduce ethanol as a household cooking fuel alongside LPG, with the framework expected ready by September, according to industry executives.
  • Distillery capacity has grown much faster than E20 blending demand earlier this year, forcing producers to explore alternatives; India's ethanol programme now faces nearly 7 billion litres of unused capacity heading towards 24 billion litres total.
  • Global airlines willing to pay premiums for sustainable aviation fuel have prompted India to develop ethanol-to-jet conversion technology; NTPC Green Energy and GPS Renewables are building India's first such plant near Visakhapatnam, expected to produce around 1,800 tonnes annually.
  • Industry executives said the policy aims to position ethanol as complementary to LPG with potential subsidy schemes; Oil Marketing Companies could establish ethanol dispensing units at fuel retail outlets where consumers purchase ethanol in canisters through dedicated "ethanol ATMs."
  • India's ethanol surplus could supply neighbouring markets like Nepal, Bangladesh and Indonesia, which have 10% blending targets but insufficient domestic capacity; geopolitical disruptions from West Asia conflict have prompted strategic LPG reserves planning of nearly 30 days to strengthen energy security.
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The government is now preparing to use ethanol as cooking gas. It has been proposed that under this scheme, ethanol will be used in place of LPG. Subsidies may also be provided...

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Times of India broke the news in India on Monday, July 20, 2026.
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