Why in the news?
Hardeep Singh Puri launched E85 fuel at an Indian Oil Corporation retail outlet in New Delhi on World Environment Day 2026.
What is E85 Fuel?
- E85 is a high ethanol-blended fuel containing:
- 80–85% ethanol
- 14–19% petrol.
- Designed specifically for: Flex-Fuel Vehicles (FFVs).
What are Flex-Fuel Vehicles (FFVs)?
- Vehicles capable of operating on: Ethanol blends from E20 to E100.
- They automatically adjust engine functioning according to fuel blend composition.
Rollout Plan
- Initial rollout: 48 retail outlets of Public Sector Oil Marketing Companies (OMCs).
- Expansion target:
- 500 outlets by December 2026.
- 5,000 outlets by December 2027.
- Goal: Raise ethanol blending levels to nearly 26% by 2030-31.
Ethanol Blending Achievements
- Ethanol blending increased from:
- 1.53% in 2014
- to 20% in 2026.
- India achieved 20% ethanol blending target five years ahead of schedule.
- Benefits achieved:
- Saved over ₹1.84 lakh crore in foreign exchange.
- Replaced nearly 302 lakh metric tonnes of crude oil imports.
Benefits of E85
Economic Benefits
- E85 priced nearly:
- ₹20 per litre cheaper than conventional petrol.
- Can generate:
- Demand for over 312 crore litres of ethanol if FFV adoption increases.
- Could transfer:
- Nearly ₹12,403 crore to farmers annually.
Environmental Benefits
- Reduces lifecycle greenhouse gas emissions by: Around 61% compared to petrol.
- Higher ethanol blending:
- Improves combustion efficiency.
- Reduces particulate matter emissions.
- Potential reduction: 66.4 lakh metric tonnes of CO₂ annually.
[2025] Consider the following statements:
Statement I: Of the two major ethanol producers in the world, i.e., Brazil and the United States of America, the former produces more ethanol than the latter.
Statement II: Unlike in the United States of America where corn is the principal feedstock for ethanol production, sugarcane is the principal feedstock for ethanol production in Brazil.
Which one of the following is correct in respect of the above statements?
[A] Both Statement I and Statement II are correct and Statement II explains Statement I
[B] Both Statement I and Statement II are correct but Statement II does not explain Statement I
[C] Statement I is correct but Statement II is not correct
[D] Statement I is not correct but Statement II is correct